Auto Body Shop Break-Even Analysis: About $52K Monthly Sales

Fixed costs $36.6K/mo Recurring base

Contribution margin 70.5% After variable

Break-even revenue $51.9K/mo Revenue target

Break-even timing Month 5 Launch ramp

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for an auto body shop.

Lean Base Full

Monthly revenue Revenue sets the margin left to cover fixed costs. $ Lower sales Higher sales Variable expenses Direct costs like parts, materials, ads, and subcontracted labor rise with sales. $ Lower costs Higher costs

Money available to cover fixed costs $65,700 $90,000 revenue - $24,300 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead and payroll the shop must cover before profit. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which auto body shop expenses are fixed, and which move with repair volume?

Cost classification

Break-even gets noisy when parts, materials, and outside labor sit in overhead. Keep stable monthly bills fixed, tie direct job costs to sales, and treat labor and utilities as capacity-linked so Month 5 break-even is not overstated.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease Payment	Fixed	Use $8,500 per month as base overhead before any repair volume.	Spreading rent across jobs and making break-even look lower.
Business Insurance	Fixed	Use $750 per month as recurring overhead in the monthly break-even model.	Treating insurance as a per-job charge instead of a standing bill.
Shop Management Software	Fixed	Use $300 per month as fixed operating overhead for the planning range.	Linking the software bill to repair count without usage-based data.
Parts Cost	Variable	Apply 18.0% of revenue in the first year, stepping down to 16.0% by the fifth year.	Burying parts in fixed overhead and hiding true job margin.
Shop Consumable Materials	Variable	Apply 6.0% of revenue in the first year, stepping down to 5.0% by the fifth year.	Treating paint materials, tape, and supplies as fixed shop overhead.
Marketing & Customer Acquisition	Variable	Model as 4.0% of revenue in the first year, falling to 3.0% by the fifth year.	Using only the annual budget and missing volume-linked acquisition spend.
Technician and Painter Wages	Semi-fixed	Step wages up when staffing rises with bay volume, such as adding technicians or painters.	Assuming payroll moves smoothly with every extra repair order.
Utilities	Semi-variable	Start with the $1,200 monthly bill, then review usage as spray booth and compressor hours rise.	Leaving all utilities fixed when production equipment use increases.

How does break-even change across lean, base, and full shop setups?

Scenario table

Break-even shifts as volume, labor, and overhead change. The lean and base cases clear fixed costs, and the full case keeps a wider cushion even with more staff on payroll.

Planning cases only; actual results can move with job mix, staffing, and rework.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch coverage	$519K	$153K	$366K	70.5%	$0	Covers launch overhead, but profit is basically flat.
Base case	$888K	$262K	$366K	70.5%	$260K	This is the first clear cushion after the Month 5 break-even point.
Busier capacity case	$2,241K	$641K	$443K	71.4%	$1,157K	Higher volume still beats overhead, so the main risk is shop capacity.

What breaks the break-even plan for an auto body shop?

Stress test

The cushion is thin: at about a 70.5% contribution margin, a $10,000 sales miss or a 1-point margin slip quickly changes the target. Add $1,000 a month of overhead and break-even moves again.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$519,000	$0 gap	Full booking is needed to clear fixed shop costs.
Revenue shortfall	Annual sales land $10,000 below target.	$519,000	$10,000 gap	Slow insurer referrals or supplement delays can erase the buffer.
Fixed-cost pressure	Monthly overhead rises by $1,000.	$533,000	$14,000 gap	Lease, utilities, or payroll creep moves break-even up fast.
Margin pressure	Contribution margin falls 1 point from higher parts or paint costs.	$526,000	$7,000 gap	Parts returns and booth downtime cut room quickly.
Combined pressure	Sales run $10,000 light, overhead rises $1,000 a month, and margin falls 1 point.	$540,000	$21,000 gap	Underbooked bays and slower supplements can push break-even past Month 5.

What should an auto body shop founder verify before signing the lease and buying the equipment?

Founder checklist

Before you commit, check that the shop can cover fixed costs, hit the model’s Month 5 breakeven, and still fund the buildout. If the first months can’t absorb the lease, payroll, and equipment load, the opening is too early.

1Fixed load$36.6K/mo

Verify the lease, utilities, insurance, software, and Year 1 payroll total this much each month before you sign.

2Contribution margin70.5%

Check that Year 1 parts, consumables, marketing, and subcontract labor leave this margin, or the break-even math gets tight fast.

3Demand proofMonth 5

Make sure the opening job pipeline can reach breakeven by Month 5, not just keep the bays busy.

4Staff ramp5 FTE

Confirm the manager, lead technician, technician, painter, and customer service role are in place, and that bay flow and spray booth readiness can support their output.

5Cash cushion$714K

Hold this cash before launch, since the model bottoms out in Month 2 and also needs $205K of startup capex for the frame machine, paint booth, tools, IT, security, and parts.

6Launch demand$15K / $120 CAC

Test whether the Year 1 marketing budget can buy enough work at a $120 CAC and whether parts and paint terms keep cash from getting tied up before invoices pay.