Basement Egress Window Installation Break-Even: Month 3

Fixed costs ~$43.9K/mo Year 1 base

Contribution margin 70% After job costs

Break-even revenue ~$62.7K/mo Monthly target

Break-even timing Month 3 Early ramp

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where a basement egress window contractor breaks even.

Lean Base Full

Monthly revenue Revenue is the cash in that covers direct costs and overhead. $ Low sales High sales Variable expenses These rise with jobs and include materials, labor, fuel, and permit costs. $ Light cost Heavy cost

Money available to cover fixed costs $499,949 $688,583 revenue - $188,634 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the margin has to cover. $ Lean overhead Scaled overhead

Break-even chart Revenue Total costs

Which basement egress window installation expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful when job-dependent spend stays separate from overhead. If permits, disposal, or subcontracted excavation get buried as overhead, the Month 3 break-even can look safer than the cash model really is.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Yard Rent	Fixed	Include $3,500/month in overhead from Month 1 through Month 60.	Spreading rent across jobs and hiding capacity risk.
General Liability and Workers Comp Insurance	Fixed	Include $1,800/month below gross margin as recurring overhead.	Modeling insurance as a revenue percentage.
Installation Materials and Supplies	Variable	Apply 18% of first-year revenue as direct job spend.	Treating stocked materials as fixed overhead.
Subcontractor Labor and Disposal Fees	Variable	Apply 8% of first-year revenue because spend follows completed jobs.	Putting disposal or subcontracted excavation into overhead.
Permit Fees and Municipal Bonds	Variable	Apply 1% of first-year revenue and tie it to job volume.	Leaving permits out of contribution margin.
Salaried Installation and Admin Payroll	Semi-fixed	Model first-year salaries at $30,750/month, then step up as FTE counts rise.	Treating all payroll as variable labor.
Annual Marketing Budget	Semi-fixed	Use $45,000 in the first year and reset the budget in annual steps.	Assuming every marketing dollar flexes with each job.
Utilities and Communications	Semi-variable	Start with the $600/month base and allow usage to rise with job volume.	Calling the whole bill fixed when crew activity grows.

How does break-even change as basement egress work moves from a lean launch to full growth?

Scenario table

Break-even gets safer as the mix shifts from full installs toward upgrades and add-ons. Marketing also rises from $45k to $75k a year, but revenue and contribution grow faster than the cost base.

Planning numbers only; actual jobs, permits, and crew mix can move the result.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$249.4k	$74.8k	$48.7k	70.0%	$125.9k	Thinest cushion, so a slow start still matters.
Base operating mix	$506.1k	$145.2k	$58.8k	71.3%	$302.0k	Comfortable cushion; fixed costs are covered well.
Full growth mix	$688.6k	$188.7k	$78.0k	72.6%	$421.9k	Strong cushion, with more room for overhead.

What breaks first if bookings slow or job costs jump?

Stress test

The base plan has room: Year 1 revenue of $2.99M sits well above a roughly $627K break-even. The weak spots are a 20% booking drop, a 10% overhead jump, or variable costs rising from 30% to 35%; together they can leave about a $157K operating gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$627K	$2.37M cushion	Year 1 revenue stays well above break-even.
Revenue shortfall	Year 1 revenue falls 20% to about $2.39M.	$627K	$1.77M cushion	Still safe, but less room for CAC mistakes.
Fixed-cost increase	Overhead rises 10% from $439K to $483K.	$690K	$2.30M cushion	Rent, insurance, and payroll creep lift the floor.
Margin pressure	Variable expenses rise from 30% to 35%.	$675K	$2.32M cushion	Materials, disposal, excavation, or permit friction raise the line.
Combined pressure	Revenue falls to $502K, overhead rises 10%, and variable expenses rise to 35%.	$743K	$157K gap	Below 13 booked installs and idle crew time can turn negative.

Is your basement egress window business ready to commit to the full cost base yet?

Founder checklist

Verify these six items before you lock the full cost base. The model only works if you can book at least 13 installs a month at about $450 CAC, while keeping enough cash for the $808K Month 2 trough.

1Demand proof13 installs/mo

Verify booked work reaches at least 13 installs a month, or the revenue equivalent, before you scale ads.

2Fixed load$40.2K/mo

Make sure Year 1 work can carry about $40.2K a month in overhead and wages before you lock in the full cost base.

3Rate card$195/$175/$150

Price full installs at 32 hours and $195 an hour, upgrades at 16 hours and $175, and add-ons at 4 hours and $150.

4Cost quotes70% CM

Get supplier and subcontractor quotes before you assume 18% materials, 8% labor and disposal, 3% fuel, and 1% permit costs.

5Equipment stack$150K

Test whether the truck, trailer, saw, shoring, and core drilling rig really justify the full $150K equipment stack.

6Crew ramp5.5 FTE

Keep the $808K Month 2 cash cushion, and do not add headcount ahead of booked work when the first-year team already totals 5.5 FTE.