Basketball Court Installation Break-Even Analysis: $101K/Month

Fixed costs $28.7K/mo Overhead base

Contribution margin 70.5% After variable

Break-even revenue $40.8K/mo Monthly target

Break-even timing Month 3 Launch month

Break-even calculator

Test whether monthly revenue covers direct project costs and the fixed cost base for a basketball court contractor.

Lean Base Full

Monthly revenue Use monthly billing before direct costs so the model can test margin against overhead. $ Slow month Peak month Variable expenses Use direct project costs that rise with revenue, like materials, subcontractors, fuel, and permits. $ Tight costs Heavy costs

Money available to cover fixed costs $1,339,435 $1,827,333 revenue - $487,898 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs Use monthly overhead that stays on even when sales dip, like payroll and facility costs. $ Light overhead Big overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even gets reliable only when fixed overhead, job-linked costs, and capacity-step payroll are separated. If salaried field labor is treated like pure project labor, slow months can look safer than they are.

Expense	Cost	Break-Even Treatment	Common Mistake
Equipment Storage Yard Rent	Fixed	Use $4,500 per month in the fixed overhead base from Month 1 through Month 60.	Treating yard rent as job overhead and leaving it out during slow months.
Management Payroll	Fixed	Include the general manager at $115,000 per year and project manager at $90,000 per year as recurring fixed payroll in the first operating year.	Moving management salaries below the break-even line because they do not touch every court.
Raw Materials and Components	Variable	Model as 18.0% of first-year revenue, then reduce to 16.0% by the mature year per the forecast.	Using one flat dollar amount instead of tying surfacing materials to sales volume.
Subcontractor Paving Services	Variable	Model as 6.0% of first-year revenue, falling to 4.0% by the mature year as internal capacity improves.	Classifying paving support as fixed when it should rise with approved jobs.
Equipment Fuel and Maintenance	Variable	Use 3.0% of first-year revenue, declining to 2.2% by the mature year as utilization improves.	Budgeting fuel like office rent instead of tying it to field activity.
Project Permits and Site Logistics	Variable	Use 2.5% of first-year revenue, stepping down to 1.7% by the mature year.	Forgetting permits in small resurfacing jobs, which overstates margin.
Lead Court Technician Payroll	Semi-fixed	Model capacity in staffing steps: 2.0 FTE in the first year, 3.0 FTE in years 3 and 4, and 4.0 FTE in year 5.	Treating salaried crew payroll like pure project labor when it still hits cash in slow months.
Marketing Budget and Customer Acquisition	Semi-variable	Plan the $45,000 first-year budget as committed spend, then test CAC at $1,250 per acquired customer against signed jobs.	Assuming ads stop instantly when leads slow, even after campaigns are already committed.

How does break-even shift across lean, base, and full workloads for this basketball court installer?

Scenario table

Break-even moves mostly with crew utilization and mix. The model reaches break-even in Month 3, so the real test is whether booked work stays dense enough to keep the fixed yard, fleet, and staff covered.

Planning cases only. Actual break-even will move with booked mix, crew utilization, and prep timing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean break-even load	$98k	$31k	$67k	68%	$0	You cover overhead, but any delay or rework can put you under.
Year 1 base mix	$720k	$225k	$67k	69%	$428k	Solid cushion; Year 1 volume absorbs overhead well.
Year 2 scaled mix	$1.359m	$398k	$77k	71%	$884k	Higher scale widens the cushion, but coordination still matters.

What breaks the break-even plan for a basketball court installer?

Stress test

The plan gets tight if booked revenue slips below the Year 1 run rate or if subcontractor and material costs rise. At a 70.5% contribution margin, even a small overhead bump pushes break-even higher fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,011k	$291k gap	Year 1 average revenue sits below break-even.
Revenue shortfall	Year 1 booked revenue averages $719.8k per month.	$1,011k	$291k gap	Slower bookings leave a wide gap to cover fixed costs.
Fixed-cost pressure	Monthly overhead rises by $10k.	$1,025k	$305k gap	Every added overhead dollar pushes break-even up fast.
Margin pressure	Variable costs rise from 29.5% to 34.5% of revenue.	$1,102k	$382k gap	Subcontractor or material overruns hit break-even hard.
Combined pressure	Revenue slips 10%, overhead rises $10k, and variable costs rise to 34.5%.	$1,102k	$454k gap	Slower bookings and cost inflation create the harshest gap.

What should you verify before you sign the yard lease and buy the first trucks?

Founder checklist

Before you lock in the yard, trucks, and crew, verify that booked work can carry the model past Month 3 and that you can absorb the $725K cash trough in Month 2. If either one is weak, wait on the lease and big gear.

1Booked WorkMonth 3

Confirm signed jobs and live leads can keep revenue moving through the Month 3 break-even point, or the opening spend lands too early.

2Fixed Load$11.65K/mo

Check that the $4,500 yard rent and the rest of the fixed overhead still fit before you commit to a long lease.

3Margin Check70.5%

Verify raw materials at 18%, paving subcontractors at 6%, fuel at 3%, and permits and logistics at 2.5% so job margin stays wide enough.

4Crew Hours160/60/8 hrs

Make sure the crew can cover 160 hours for new construction, 60 for resurfacing, and 8 for maintenance each month without breaking the schedule.

5Cash Buffer$725K

Confirm you can carry the Month 2 cash low of $725K, or the truck and equipment spend will outrun collections.

6Launch StackBid-ready

Before ramp-up spend, verify insurance certificates, permit flow, truck and trailer access, line striping gear, spray rig, grading equipment, and enough leads to feed the first jobs.