Badminton Court Installation Break-Even: About $63K/Month

Fixed costs $37.8K Year 1 base

Contribution margin 66% After variable spend

Break-even revenue $57.2K Monthly target

Break-even timing Month 5 Launch ramp

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and the fixed monthly cost base.

Lean Base Full

Monthly revenue This is the top line that must cover direct costs and fixed overhead. $ Low sales High sales Variable expenses These are the direct costs tied to each project, like materials, freight, and commissions. $ Low cost High cost

Money available to cover fixed costs $199,750 $315,167 revenue - $115,417 variable expenses

Margin ratio

63%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business must cover before profit starts. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which court installation expenses stay fixed, and which move with sales?

Cost classification

Break-even gets reliable only when overhead stays separate from project-driven spend. Fixed monthly items set the revenue floor, while materials, subcontractors, freight, and referral fees reduce margin on each job.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Rent	Fixed	Carry $4,500/month as baseline overhead from Month 1 through Month 60.	Allocating rent to each project and hiding the monthly revenue floor.
Liability and Workers Comp Insurance	Fixed	Include $1,200/month in fixed overhead for the relevant planning range.	Leaving it out because it feels tied to field work.
Design and CRM Software Subscriptions	Fixed	Model $650/month as recurring overhead needed to sell and manage jobs.	Treating software as a per-job charge without usage-based data.
Utilities and Communications	Fixed	Use $550/month as stable operating overhead in the break-even base.	Blending small office overhead into project estimates.
Specialized Flooring and Surface Materials	Variable	Apply 18.5% of first-year revenue, falling to 15.5% by the fifth year.	Using one flat materials budget even as sales volume changes.
Subcontracted Excavation and Foundation	Variable	Apply 9.5% of first-year revenue, falling to 7.5% by the fifth year.	Holding excavation flat when more court builds are sold.
Vehicle Fuel and Maintenance	Semi-variable	Start with the $1,800/month base, then stress-test long-distance project pressure.	Keeping travel spend flat as service area and job count grow.
Lead Installation Foreman and Project Technician Staffing	Semi-fixed	Add payroll in crew-size steps; first year includes one foreman and two technicians.	Treating all labor as Variable when first-year payroll includes salaried roles.

How do lean, base, and full operating cases change break-even for a badminton court installer?

Scenario table

Lean coverage is thin: $63K of monthly revenue with 34% variable costs leaves almost no cushion after fixed costs. Base lands at Month 5 break-even, while the full case gains real overhead coverage because revenue grows faster than payroll.

Planning case figures use the model assumptions above; they are directional, not guaranteed.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$63K	$21K	$42K	66%	$0K	Near-zero cushion; delays can push profit negative.
Year 1 base case	$120K	$41K	$38K	66%	$41K	Break-even lands around Month 5.
Full scale case	$456K	$128K	$87K	72%	$241K	Strong cushion, but only if the larger crew stays busy.

What breaks first if bookings slow or costs run hot?

Stress test

The model clears break-even in the first year, but the cushion is not huge. Slower bookings, higher materials, and $10K of monthly overhead creep can cut slack from $57K to about $7K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$63K	$57K cushion	Healthy slack, but bookings still need to land on time.
Revenue shortfall	Year 1 monthly revenue falls from about $120K to $96K.	$63K	$33K cushion	Still above break-even, but the cushion gets thin.
Fixed-cost pressure	Fixed costs rise by $10K per month to $515K.	$78K	$42K cushion	Overhead creep raises the break-even bar fast.
Margin pressure	Variable expenses rise from 34% to 39%.	$68K	$52K cushion	Materials and labor overruns cut contribution margin.
Combined pressure	Revenue drops to $96K, variable expenses hit 39%, and fixed costs reach $515K.	$89K	$7K cushion	One more miss would push the model past break-even.

Can your badminton court pipeline cover overhead before you sign the lease and buy the fleet?

Founder checklist

Don't sign the lease or hire the full crew until you can see at least $63K a month of qualified pipeline. With breakeven in Month 5, the real test is whether bookings, margins, and cash can cover the $718K low point in Month 2.

1Pipeline$63K/mo

Verify qualified bids and signed jobs can reach at least $63K a month before you lock in overhead, or the crew and rent will outrun cash.

2Cost Load34% direct

Confirm surface materials, excavation, freight, and sales fees stay near 34% of revenue so the Year 1 margin can carry fixed costs.

3Overhead$37.8K/mo

Check that rent, insurance, software, fuel, utilities, memberships, and Year 1 wages stay covered by gross profit, because the fixed load is about $37.8K a month before growth.

4Crew Ramp5 FTE

Verify the opening team of one manager, one foreman, two technicians, and one sales lead can handle the Year 1 job mix before you add more headcount.

5Cash Floor$718K

Keep at least the Month 2 cash floor in reserve, because capex and startup hiring hit early while payback does not arrive until Month 11.

6Launch Spend$45K / $2.5K CAC

Test whether the Year 1 marketing budget can hold customer acquisition cost near $2,500, or booked work will lag the team you already pay for.