Cabinet Refacing Break-Even Point: About $49K Per Month

Fixed costs $15.7K/mo Core overhead base

Contribution margin 70.5% After variable costs

Break-even revenue $22.3K/mo Monthly target

Break-even timing Month 3 Startup ramp point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a cabinet refacing service.

Lean Base Full

Monthly revenue More revenue gives you more margin to cover fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise with each project, like materials, finishing supplies, lead fees, and fuel. $ Lower costs Higher costs

Money available to cover fixed costs $350,628 $475,750 revenue - $125,122 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base the margin has to cover, including payroll and overhead. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which cabinet refacing expenses are fixed, and which move with sales?

Cost classification

Break-even only works if showroom, salary, and vehicle commitments are separated from job-level materials and lead fees. Misclassify those fixed commitments as variable, and the Month 3 break-even target will look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop and Showroom Rent	Fixed	Include $4,500/month before profit.	Treating showroom rent like job-level materials.
General Liability Insurance	Fixed	Include $650/month across the planning range.	Leaving insurance out until a claim happens.
Vehicle Lease and Maintenance	Fixed	Include $1,200/month before contribution covers overhead.	Modeling the vehicle commitment as fuel only.
General Manager Salary	Fixed	Include $95,000/year as base overhead.	Treating management salary like hourly project labor.
Lead Installation Carpenter Salary	Semi-fixed	Model $75,000/year per full-time equivalent as crew capacity steps up.	Assuming carpenter payroll rises smoothly with each sale.
Administrative Coordinator	Semi-fixed	Add $50,000/year starting Month 13.	Spreading the role across the opening year.
Cabinet Doors and Hardware Materials	Variable	Apply 18.0% of first-year revenue, declining to 16.0% by the mature year.	Using a flat monthly dollar amount instead of sales volume.
Direct Project Marketing and Lead Fees	Variable	Apply 4.0% of first-year revenue, declining to 2.0% by the mature year.	Double-counting this with the annual marketing budget.

How does break-even change across lean, base, and full cabinet refacing setups?

Scenario table

Lean stays near break-even because fixed cost is lighter. Base adds enough monthly revenue to create a solid cushion, and full stays profitable, but the extra staff raises the break-even bar.

Planning cases only; job mix, labor time, and close rates can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean owner-operator case	$50.4k	$14.9k	$34.5k	70.5%	$1.0k	Barely positive, so a small delay can flip it negative.
Base launch case	$193.8k	$57.2k	$34.5k	70.5%	$102.1k	Healthy cushion, so launch scale covers fixed cost.
Full staffed growth case	$361.7k	$100.9k	$49.5k	72.1%	$211.3k	Still profitable, but staffing lifts the monthly break-even bar.

What breaks the break-even plan for cabinet refacing?

Stress test

The plan breaks first if booked revenue slips 20% or if lead fees and materials push variable costs up 5 points. Adding staff or showroom spend before demand is proven raises the break-even bar faster than sales can catch up.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to revenue, mix, or cost structure.	$489k	$1,449k cushion	Healthy cushion if booked revenue stays near plan.
Revenue shortfall	Revenue drops 20% to $1,551k.	$489k	$1,062k cushion	Still profitable, but the cushion shrinks fast.
Fixed-cost pressure	Fixed monthly costs rise 15% to $396k.	$562k	$1,376k cushion	Adding overhead before demand is proven raises risk.
Margin pressure	Variable expenses rise 5 points to 34.5%.	$527k	$1,411k cushion	Lead fees or materials above plan cut margin fast.
Combined pressure	Revenue drops 20%, fixed costs rise 15%, and variable expenses rise 5 points.	$605k	$946k cushion	Revenue, margin, and overhead shocks stack quickly.

Can this cabinet refacing business support the showroom lease and hiring push before the fixed costs lock in?

Founder checklist

Test the model against break-even before you add overhead. If the pipeline, crew hours, and cash cushion do not hold up at the Year 1 assumptions, wait on the lease, extra installers, and the second van.

1Booked Demand13 jobs/mo

Verify you can close 13 monthly jobs at a $3,876 average project value, with Year 1 marketing at $45,000 and CAC at $450, before you commit to full overhead.

2Fixed Overhead$7.8K/mo

Workshop rent, insurance, software, utilities, vehicle costs, and supplies total $7.8K a month, so the lease only works if booked work already covers that base load.

3Unit Margin70.5% CM

Year 1 materials and lead costs use 29.5% of revenue, leaving a 70.5% contribution margin before payroll and rent; if supplier pricing slips, break-even moves fast.

4Crew Hours32.0 hrs

Check that one active customer really fits about 32 billable hours on average, with kitchen jobs at 40, vanity updates at 12, and storage work at 8, so the calendar can handle the mix.

5Cash Floor$791K

The cash low hits Month 2 at $791K, and startup capex totals $151.5K across the first van, tools, displays, IT setup, dust extraction, furnishings, and the second van, so cash has to survive the buildout.

6Launch PaceMonth 3

Breakeven lands in Month 3, so delay the second van and extra hires unless the first months already show enough booked work to support the ramp.