Carpentry Service Break-Even: About $235k Monthly Revenue

Fixed costs $4.4K/mo Overhead base

Contribution margin 70% After job costs

Break-even revenue $6.3K/mo Target sales

Break-even timing Month 6 First breakeven

Break-even calculator

Use this to test monthly revenue, variable expenses, and fixed costs against break-even for a carpentry service.

Lean Base Full

Monthly revenue More revenue gives you more room to cover overhead. $ Low volume High volume Variable expenses Direct costs like materials and fuel rise with each job. $ Light jobs Heavy jobs

Money available to cover fixed costs $24,500 $35,000 revenue - $10,500 variable expenses

Margin ratio

70%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin must cover. $ Small overhead Bigger overhead

Break-even chart Revenue Total costs

Which carpentry service expenses are fixed, and which move with sales?

Cost classification

The Month 6 break-even result is only reliable if lumber, subs, consumables, travel, and payroll capacity are classified correctly. Put job costs in overhead and the model will underprice work; ignore travel or rework labor and margin will look too high.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop rent ($2,500/month)	Fixed	Include as monthly overhead that must be covered before profit.	Spreading rent across jobs and hiding true monthly break-even.
Business insurance ($250/month)	Fixed	Carry as fixed overhead across the planning range.	Dropping it from break-even because it is not tied to one job.
Raw Materials & Supplies (20% of revenue)	Variable	Apply directly against each sales dollar before contribution margin.	Putting lumber in overhead instead of job-level margin.
Subcontracted Specialized Work (5% of revenue)	Variable	Treat as job-driven spending that rises with booked project volume.	Modeling specialist labor as fixed crew capacity.
Project-Specific Consumables (2% of revenue)	Variable	Deduct blades, glue, fasteners, and similar items from job contribution.	Missing small consumables that add up across many jobs.
Vehicle Fuel & Maintenance (3% of revenue)	Semi-variable	Track the usage-linked portion with job count and travel distance.	Ignoring travel time and route density in service pricing.
Utilities Workshop ($400/month)	Semi-variable	Use the $400 base as overhead and monitor usage as production rises.	Treating all utilities as flat when equipment hours increase.
Owner / Lead Carpenter and Skilled Carpenter 1 payroll ($140,000 annually)	Semi-fixed	Model as a capacity block that changes when staffing levels change.	Leaving idle time, warranty labor, and rework out of capacity planning.

How does break-even shift from a lean month to a full-capacity month for this carpentry service?

Scenario table

Fixed overhead stays high, so the mix of cabinet, install, and repair work drives the break-even line. Here’s the quick read: lean months lose money, the base month sits at break-even, and fuller months create cushion.

Planning assumptions only; real job mix, pricing, and utilization can move break-even up or down.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean repair-heavy month	$190,000	$64,600	$165,000	66%	($39,600)	Below break-even, so cash burn stays high.
Base balanced month	$235,000	$70,500	$165,000	70%	($500)	Right on the line, so small misses turn profit negative.
Full-capacity cabinetry and install month	$280,000	$78,400	$165,000	72%	$36,600	Above break-even, with a real cushion if utilization holds.

What breaks carpentry break-even first: weak bookings, overhead creep, or job margin pressure?

Stress test

The plan only works if monthly revenue stays near $235,000 and the 70% contribution margin holds. If bookings slip, overhead rises, or lumber waste and rework push variable costs up, the break-even point moves up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$235,000	$0 cushion	The plan clears only if revenue holds.
Revenue shortfall	Monthly bookings run 15% below plan.	$235,000	$35,250 gap	A modest sales miss wipes out the cushion.
Fixed-cost pressure	Workshop rent and vehicle lease add $3,100 per month.	$239,429	$4,429 gap	Overhead creep raises the floor even if sales hold.
Margin pressure	Variable costs rise from 30% to 35% of revenue.	$253,077	$18,077 gap	Waste, overages, fuel, and rework eat the margin.
Combined pressure	Bookings fall 20%, workshop rent and vehicle lease add $3,100 per month, and variable costs rise to 35% of revenue.	$257,846	$69,846 gap	Lead flow and job margin both weaken, so cash pressure compounds.

What should you verify before you commit to shop space, tools, and hires?

Founder checklist

Do not lock in the shop, vehicle, or extra payroll until booked work covers the fixed load and your rates hold. The model breaks even in Month 6, but cash still bottoms near $845K in Month 2, so the launch has to survive that gap.

1Booked Work$4.4K/mo

Confirm signed jobs can carry about $4.4K a month in fixed overhead before you lock in shop space, because that cost raises break-even even when the shop is quiet.

2Rate Check$95/$90/$85/$75

Test that clients will pay the Year 1 hourly rates for cabinetry, furniture, millwork install, and repairs, with materials billed separately or marked up, so contribution stays real.

3Supply Flow25% COGS

Verify lumber, hardware, and consumables can be sourced on time at the assumed 20% materials and 5% subcontracted-work load, because supply gaps and rush buys cut margin.

4Capex Stage$71.5K

Stage the $15K major tools, $30K vehicle, and $8K hand tools only as demand shows up, so equipment spend does not land before revenue.

5Hire RampMonth 19

Delay Skilled Carpenter 2 until booked jobs can absorb the Month 19 ramp, or payroll will outrun utilization and push break-even out.

6Cash Cushion$845K

Keep cash for the Month 2 trough of about $845K and keep Year 1 CAC near $150, because launch marketing has to pay back fast enough to bridge the gap.