Asphalt Repair Service Break-Even: $228K Monthly Revenue Target

Fixed costs $15.4K/mo Monthly fixed base

Contribution margin 73% After variable costs

Break-even revenue $21.1K/mo Revenue target

Break-even timing Month 4 First break-even

Break-even calculator

See how monthly revenue, direct project costs, and fixed overhead affect break-even for an asphalt repair service.

Lean Base Full

Monthly revenue Revenue sets how much contribution is left to cover fixed overhead each month. $ Low sales High sales Variable expenses Use direct project costs that rise with sales, like labor, materials, and fuel. $ Low costs High costs

Money available to cover fixed costs $165,085 $217,215 revenue - $52,130 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs Use rent, admin pay, insurance, and other costs that stay monthly. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which asphalt repair expenses are fixed, and which move with sales?

Cost classification

Your break-even only works if rent and salaries stay in monthly overhead while materials, fuel, job labor, and wear move with revenue. Mix them up, and Month 4 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Raw Materials: Asphalt, Filler, Sealant	Variable	Use 12% of first-year revenue.	Don’t treat filler and sealant as overhead.
Equipment Fuel and Consumables	Variable	Use 4% of first-year revenue.	Don’t bury route fuel in rent.
Project-Specific Labor: Hourly Technicians	Variable	Use 8% of first-year revenue.	Don’t mix hourly job labor with salaried crew.
Equipment Maintenance Per Project	Variable	Use 3% of first-year revenue.	Don’t ignore wear by job count.
Workshop and Office Rent	Fixed	Use $2,500 per month.	Don’t assume slow months reduce it.
Vehicle Fleet Insurance	Fixed	Use $800 per month.	Don’t treat it as per-mile fuel.
Owner/Operator and Skilled Asphalt Technician 1 Salaries	Fixed	Use $125,000 per year combined in the first year.	Don’t leave core crew pay out of overhead.
Annual Marketing Budget	Semi-fixed	Use $15,000 in the first year.	Don’t model it as spend that rises with every job.

How does break-even change as an asphalt repair service moves from a lean crew to a full support team?

Scenario table

Adding technicians and support staff lifts fixed overhead and pushes break-even up fast. Lean clears around $228K a month, base around $342K, and full around $456K, so the work mix has to shift toward denser, higher-ticket routes.

Planning assumptions only; service participation percentages are allocation inputs, not a clean 100% revenue mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 crew	$228K	$62K	$167K	73%	$0	Very tight; one weak month can slip below break-even.
Base Year 2 crew	$342K	$88K	$254K	74.4%	$0	Better capacity, but payroll still needs full route use.
Full Year 4 crew	$456K	$102K	$354K	77.6%	$0	Highest overhead, so dense parking lot work matters most.

What breaks this asphalt repair break-even plan when jobs slow down or costs rise?

Stress test

The plan is safe only while revenue stays above the $228K break-even line. The sharpest pressure points are the Year 2 crew step-up to $342K break-even and the 27% Year 1 job-cost stack, which hits margin first.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$228K	$0 cushion	At the line now; any miss turns loss.
Revenue shortfall	Annual revenue slips below the $228K break-even line.	$228K	$0 cushion	CAC above $180 and weak lead flow show up first.
Fixed-cost increase	Added crew lifts fixed monthly costs to $254K.	$342K	$114K gap	Payroll growth pushes the bar up fast.
Margin pressure	Project costs stay at the Year 1 mix: 27% of revenue.	$228K	$0 cushion	Raw materials, fuel, labor, and maintenance leak margin first.
Combined pressure	Added crew lifts fixed monthly costs to $254K and lead flow softens.	$342K	$114K gap	Weak leads plus higher payroll is the danger zone.

Can you prove enough asphalt repair demand before you lock in trucks, crews, and workshop costs?

Founder checklist

Confirm you can book enough work to justify the first truck, machines, and hires before you spend. The model only works if leads, pricing, and cash all hold together; Month 4 break-even is not a cash cushion, and the minimum cash need still peaks at $756K in Month 2.

1Lead flow$15K Y1

Verify inbound calls and quote volume can support the Year 1 marketing budget before you add fixed capacity.

2Ticket mix$720-$1,500

Check that pothole patching, crack filling, sealcoating, and line striping price cleanly at the Year 1 ticket levels.

3Margin check73% CM

Confirm materials, fuel, labor, and maintenance stay near 27% of revenue so contribution margin can cover fixed costs.

4Fixed load$5K/mo

Hold monthly overhead near the current fixed base before adding more rent, admin, or other standing costs.

5Crew ramp$342K/mo

Delay the extra technician and labor hires until revenue can clear the Year 2 monthly break-even level and support the $185K equipment plan.

6Cash cushion$756K peak

Keep enough reserve for the Month 2 cash trough, because Month 4 break-even does not protect working capital.