Cash Register Repair Service Break-Even Analysis: $70K Monthly Revenue

Fixed costs $54.1K/mo Base overhead

Contribution margin 91.5% After variable spend

Break-even revenue $59.1K/mo Monthly target

Break-even timing Month 28 Launch ramp point

Break-even calculator

Test how monthly revenue, direct costs, and fixed costs shape break-even for a cash register repair service.

Lean Base Full

Monthly revenue Revenue sets how much gross profit is available to cover fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with each service job and repair ticket. $ Lean costs Heavy costs

Money available to cover fixed costs $145,533 $157,333 revenue - $11,800 variable expenses

Margin ratio

92%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that margin must cover before profit starts. $ Tight overhead High overhead

Break-even chart Revenue Total costs

Which cash register repair service expenses stay fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead stays fixed and variable items move with revenue. Here, misclassing parts or dispatch fees as overhead can make Month 28 look safer than the cash model supports.

Expense	Cost	Break-Even Treatment	Common Mistake
Corporate Office Lease	Fixed	Keep the $5,500/month lease in fixed overhead from Month 1 through Month 60.	Allocating rent per repair job and hiding the monthly burn.
CRM and Monitoring Software Licenses	Fixed	Include the $2,800/month license spend as fixed operating overhead.	Treating software as variable without per-customer pricing data.
Professional Liability Insurance	Fixed	Carry the $1,200/month policy as fixed overhead in break-even math.	Dropping insurance because no single service call triggers it.
General Administrative Expenses	Fixed	Include the $1,000/month admin line as fixed when bookkeeping is billed monthly.	Modeling monthly admin as if it were paid per transaction.
Replacement Hardware Parts Inventory	Variable	Model parts as 4.5% of first-year revenue, improving to 3.5% in the mature year.	Treating parts like fixed overhead or one-time startup stock.
Field Service Network Dispatch Fees	Variable	Model dispatch fees as 4.0% of first-year revenue, improving to 3.0% in the mature year.	Burying dispatch fees in payroll instead of sales-linked expense.
Fuel and Mileage for Field Visits	Semi-variable	Separate base vehicle readiness from mileage that rises with route volume.	Treating every dollar as fixed vehicle overhead.
Support Specialist Staffing	Semi-fixed	Add labor in capacity steps as staffing rises from 2.0 FTE in the first year to 10.0 FTE in the mature year.	Letting support labor scale smoothly with revenue each month.

How does break-even shift across lean, base, and full service builds for a cash register repair service?

Scenario table

Lean launch stays deep in the red because Year 1 sales don't cover payroll plus marketing. The base case nearly closes the gap, and the full case finally gives enough cushion for Year 3 EBITDA to turn positive.

Planning assumptions only; actual break-even will move with call mix, staffing pace, and part usage.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch plan	$42.9k	$3.6k	$64.1k	91.5%	-$24.8k	Still well below break-even; fixed costs outrun Year 1 sales.
Base growth plan	$91.9k	$7.4k	$85.8k	92.0%	-$1.2k	Almost at break-even, but one weak month can flip it back.
Full staffing plan	$157.3k	$11.8k	$108.3k	92.5%	$37.1k	This is the first real cushion, and Year 3 EBITDA turns positive.

What breaks the break-even plan if sales slow or costs creep up?

Stress test

The plan is already below break-even: about $42.9k monthly revenue versus about $70k needed. A 10% sales dip, a $5k monthly fixed-cost bump, or higher parts and dispatch costs widens the gap fast and can push cash toward the $203k floor.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$70,000	$27,100 gap	Monthly revenue is still below break-even.
Revenue shortfall	Revenue falls 10% to about $38,600 per month.	$70,000	$31,400 gap	A small sales drop cuts the cushion fast.
Fixed-cost pressure	Fixed costs rise by $5,000 per month.	$75,500	$32,600 gap	Rent, software, or payroll creep widens the loss.
Margin pressure	Hardware inventory and dispatch fees rise from 8.5% to 10.5% of revenue.	$71,600	$28,700 gap	Parts and travel cost creep eats into service margin.
Combined pressure	Revenue falls 10% and fixed costs rise by $5,000 per month while variable costs move to 10.5%.	$77,200	$38,600 gap	Slower volume and higher service cost can drain cash.

What should you verify before locking in the lease and hiring for a cash register repair service?

Founder checklist

Verify booked service calls, pricing, and parts access can carry the fixed load before you add the $5,500 lease and more staff. The model does not break even until Month 28, so demand and cash have to arrive before overhead does.

1Signed Pipeline$5.5K/mo lease

Confirm enough signed service calls and maintenance accounts to justify the $5,500 monthly lease before you commit to the space.

2Fixed Burn$54.1K/mo burn

Add the $12,850 of monthly overhead to the Year 1 wage load of $41,250, and you get about $54.1K in fixed burn before parts or dispatch.

3Unit Margin91.5% CM

Check that the $59, $109, and $179 plans still hold after 4.5% parts cost and 4.0% dispatch fees, or breakeven will move out.

4Onboarding Fee$150/customer

Make sure installation and onboarding can be sold at $150 per customer in Year 1, because that is a clean early cash source during launch.

5Mobile Setup$42K vehicle

Test mobile repair from the field before you buy the $42,000 service vehicle, and set warranty rules so repeat repairs do not eat margin.

6Cash Runway$203K cash

Keep at least $203K of cash available and use scheduling before you add support headcount, because EBITDA does not turn positive until Year 3.