Brownstone Restoration Break-Even Analysis: $80K Monthly Revenue

Fixed costs $52.3K/mo Overhead base

Contribution margin 70% After direct costs

Break-even revenue $74.7K/mo Monthly target

Break-even timing Month 7 Model timing

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a historic brownstone restoration service.

Lean Base Full

Monthly revenue Revenue is the top line that has to cover direct costs and overhead. $ Small month Big month Variable expenses These are direct project costs that rise with work, like materials and subcontractors. $ Tight costs Heavy costs

Money available to cover fixed costs $189,244 $260,667 revenue - $71,423 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your margin must cover before profit starts. $ Lean base High base

Break-even chart Revenue Total costs

Which historic building restoration expenses are fixed, and which move with sales?

Cost classification

The model reaches break-even in Month 7, but only if fixed overhead stays out of job margin math. Classify rent, payroll, materials, filings, and insurance correctly so each new project shows real contribution.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop and Studio Rent	Fixed	Treat the $12,500 monthly charge as overhead before measuring job contribution.	Assigning rent only to active jobs and overstating slow-month margin.
General Liability Insurance	Fixed	Carry the $2,800 monthly premium as standing overhead in break-even math.	Confusing it with project-specific insurance tied to revenue.
Utilities and Climate Control	Fixed	Keep the $950 monthly model amount in overhead for the planning range.	Assuming it disappears when project volume drops.
Master Mason, Master Carpenter, Senior Project Manager, and Preservation Consultant Payroll	Semi-fixed	Use about $32.7k per month in the first year, then step it up as full-time equivalent counts rise.	Treating skilled staff as fully variable labor.
Specialty Materials and Reclaimed Lumber	Variable	Model at 18.0% of revenue in the first year, declining to 16.0% by the fifth year.	Using a flat dollar budget instead of tying materials to sales.
Niche Subcontractor Fees	Variable	Model at 8.0% of revenue in the first year, declining to 6.0% by the fifth year.	Underpricing specialty trades and shrinking project margin.
Permit and Landmark Filing Fees	Variable	Model at 3.0% of revenue in the first year, declining to 2.2% by the fifth year.	Ignoring filing-heavy jobs during bid pricing.
Project Specific Insurance Premiums	Variable	Model at 1.0% of revenue in the first year, declining to 0.6% by the fifth year.	Lumping it into general liability and missing project-level risk.

How does break-even change across lean, base, and full brownstone restoration scenarios?

Scenario table

Break-even tightens as revenue rises faster than fixed overhead. The full case has the best cushion because Year 2 revenue and a 71.3% contribution margin help absorb the larger crew and higher marketing spend.

Planning cases only; actual break-even will shift with permit timing, job mix, and crew productivity.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$80.0k	$24.0k	$61.1k	70.0%	-$5.1k	No cushion; one delay can flip it negative.
Base launch pipeline	$95.2k	$28.6k	$61.1k	70.0%	$5.5k	Small cushion, but Month 7 break-even is the key watchpoint.
Full crew buildout	$188.9k	$54.2k	$68.5k	71.3%	$66.3k	Healthy cushion; keep crews busy to protect it.

What breaks the break-even plan for a brownstone restoration service?

Stress test

The base plan clears break-even with about a $106,000 monthly cushion, but a 15% revenue slip nearly wipes it out. A 10% overhead jump or a 5-point margin drop still work alone, but together they create about a $90,000 monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$800,000	$106,000 cushion	The base case clears break-even, but the buffer is not wide.
Revenue shortfall	Monthly revenue falls 15% to $809,000.	$800,000	$6,000 cushion	A small start delay almost erases the safety margin.
Fixed-cost pressure	Fixed overhead rises 10% to $616,000.	$880,000	$50,000 cushion	Higher rent and support costs cut the cushion fast.
Margin pressure	Direct expenses rise to 35% of revenue.	$862,000	$59,000 cushion	Material and subcontractor creep trims break-even room.
Combined pressure	Revenue falls 15%, direct expenses hit 35%, and fixed costs rise 10%.	$948,000	$90,000 gap	Delayed starts plus cost creep push the plan below break-even.

What should you verify before you lock in rent, payroll, and tools for this brownstone restoration service?

Founder checklist

Before you commit to space, full-time trades, and the tool buildout, make sure signed or near-signed work can support the Year 1 run rate of about $95.2k a month. The model only holds if a 70% contribution margin can cover about $56.0k in monthly fixed costs.

1Signed Pipeline$95.2k/mo

Confirm booked or near-booked projects can cover the Year 1 revenue run rate before you commit to the first major overhead.

2Fixed Load$56.0k/mo

Verify rent, insurance, maintenance, software, photography, and core payroll stay near this level, because every extra dollar pushes break-even higher.

3Direct Margin70% CM

Check that materials, subcontractors, permits, and project insurance stay at about 30% of revenue so each billed hour still leaves enough to cover fixed costs.

4Crew Ramp3.5 FTE

Make sure the initial master mason, carpenter, project manager, and consultant team can sell and deliver the work before you add the next full-time hire.

5Cash Buffer$620k

Hold enough cash to reach the Month 6 low point, since payroll and capex hit before the business reaches Month 7 break-even.

6Launch Capex$230k

Confirm the full equipment plan for woodworking, metalwork, scaffolding, fit-out, transport, pneumatic tools, scanning, and workstations is tied to real demand, and delay optional gear if use is unclear.