Brick Manufacturing Break-Even Analysis: $111K Monthly Revenue

Fixed costs $94.3K/mo Monthly overhead base

Contribution margin 84.6% After variable costs

Break-even revenue $111.5K/mo Revenue threshold

Break-even timing Month 1 First break-even month

Break-even calculator

This calculator tests monthly revenue against direct costs and the fixed cost base to show when brick production breaks even.

Lean Base Full

Monthly revenue Revenue is the cash coming in to cover direct and fixed costs. $ Low output High output Variable expenses Direct kiln, labor, freight, and packaging costs rise as output rises. $ Tight costs Heavy costs

Money available to cover fixed costs $423,173 $494,250 revenue - $71,077 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs Plant, admin, insurance, software, and wages form the monthly cost base. $ Lean base High base

Break-even chart Revenue Total costs

Which brick manufacturing expenses are fixed and which move with sales?

Cost classification

Break-even only works if stable overhead, per-unit inputs, and step-up labor are kept separate. Treating kiln energy or freight as fixed can make Month 1 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Manufacturing Plant Lease	Fixed	Include the $25,000 monthly lease in overhead.	Spreading it per brick and hiding capacity risk.
General Manager and Plant Manager salaries	Fixed	Include salaried plant leadership in monthly overhead.	Treating leadership salaries as direct labor.
Clay Extraction	Variable	Scale the $0.02 per unit input with production volume.	Burying raw material swings inside overhead.
Kiln Energy	Semi-variable	Model both baseline kiln load and run-time pressure.	Treating fuel as fully fixed.
Freight to Yard	Variable	Scale freight with units shipped and distance moved.	Ignoring freight margin drag as volume rises.
Maintenance Supervisor salary	Semi-fixed	Step up staffing as plant scale increases.	Missing staffing jumps when volume grows.
Plant Depreciation	Fixed	Keep depreciation in break-even accounting, separate from cash spend.	Mixing cash outlay with accounting expense.
Packaging Materials	Variable	Tie packaging to units produced and product mix.	Using one flat rate across all brick lines.

How does break-even move from lean to base to full plant output?

Scenario table

Higher volume and a richer mix lift contribution margin, so the plant covers fixed costs with more cushion in the base and full cases. The lean case still clears break-even, but it has the tightest margin for error.

Planning assumptions only; actual break-even will move with mix, kiln use, labor, and freight.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean plant case	$297.5K	$45.8K	$94.3K	84.6%	$157.4K	Break-even is about $111.5K, so this case stays above it with the tightest cushion.
Base plant case	$494.3K	$72.7K	$100.6K	85.3%	$321.0K	Break-even is about $118.1K, and this forecast leaves a wider cushion.
Full-utilization case	$683.1K	$96.3K	$112.3K	85.9%	$474.5K	Break-even is about $131.0K, so this case has the strongest buffer.

What breaks the break-even plan for a brick plant?

Stress test

Year 1 has a wide cushion: $2,975K of monthly revenue against break-even near $1,115K. That slack can shrink fast if dealer orders slow or if fuel, clay, freight, overtime, or cold kiln starts push costs up.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; Year 1 monthly revenue is $2,975K.	$1,115K	$1,860K cushion	Strong cushion if kiln utilization holds.
Revenue shortfall	Revenue falls 20% from the base plan.	$1,115K	$1,265K cushion	Lower volume leaves the kiln underused and trims the cushion.
Fixed-cost pressure	Plant lease, royalties, and admin costs rise 15%.	$1,282K	$1,693K cushion	Fixed overhead pushes break-even up even with steady sales.
Margin pressure	Kiln energy, freight, and overtime raise variable costs 5 points.	$1,185K	$1,790K cushion	Energy and freight spikes eat margin before volume does.
Combined pressure	Revenue falls 55%, variable costs rise 10 points, and fixed costs rise 25%.	$1,580K	$240K gap	Weak dealer orders, downtime, and cold kiln starts can flip profit to loss.

What must you verify before signing the plant lease for a brick manufacturing build?

Founder checklist

Don’t sign the lease until real orders can clear the model’s $111K monthly break-even test. That means buyer commitments, not soft interest, and it should hold before you stockpile bricks or hire past the first ramp.

1Demand proof$111K/mo

Verify signed orders or firm purchase commitments can cover at least the model’s break-even revenue before you take the lease.

2Plant load$41K/mo

Check that the $25K monthly plant lease plus other fixed costs still fits local industrial alternatives and leaves room for payroll.

3Margin mix90% CM

Confirm the product mix really holds near 90% contribution margin, because freight to yard and packaging can erode break-even fast.

4Feedstock terms$5K/mo

Lock clay, shale, recycled aggregate, and quarry access terms before stockpiling bricks, since supply gaps can stop the plant and crush cash flow.

5Staff ramp7.0 FTE

Keep hiring tied to the production ramp and make sure the kiln, dryer, extruder, cutter, and packaging line can support the Year 1 plan.

6Cash reserve$1.236M

Hold at least the Month 1 minimum cash need, because the build carries about $11.1M of capex across Month 1 to Month 11 before operations fully settle.