Commercial Glazing Break-Even Analysis: ~$100K Monthly Revenue

Fixed costs $76.7K Base monthly overhead

Contribution margin 76.6% After variable costs

Break-even revenue $100K Monthly sales target

Break-even timing Month 1 Launch month

Break-even calculator

Test whether monthly revenue can cover variable expenses and the fixed cost base.

Lean Base Full

Monthly revenue Use the monthly sales run rate before direct costs. $ Lower sales Higher sales Variable expenses Use direct project costs that rise with each job, like glass, labor, freight, and testing. $ Lower costs Higher costs

Money available to cover fixed costs $1,165,800 $1,517,667 revenue - $351,867 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs Use monthly overhead that stays in place even when job volume slows. $ Lean base Heavier base

Break-even chart Revenue Total costs

Which commercial glazing expenses are fixed, and which move with sales?

Cost classification

Break-even works only if stable overhead stays separate from project-driven costs. Here, fixed overhead is about $76,700/month before project COGS, so the wrong bucket can make Month 1 look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and office rent	Fixed	Use $12,000/month from Month 1 to Month 60 as monthly overhead.	Spreading rent across jobs and losing sight of the monthly nut.
Insurance and liability	Fixed	Use $5,000/month even when project volume is light.	Treating insurance as a revenue percentage and understating break-even.
Software licenses	Fixed	Use $2,500/month as base office overhead for estimating, design, and project control.	Dropping software from break-even because it is not tied to one job.
Office payroll	Fixed	Use first year salaries of $575,000/year, or about $47,900/month, as base staffing overhead.	Loading manager, estimator, designer, safety, and admin pay into direct labor.
Glass, frames, field labor, freight, and sealants	Variable	Model as per-unit project COGS. For a curtain wall system, listed direct inputs total $3,900 before revenue-based project fees.	Treating materials and direct installation labor as fixed capacity.
Project fees, testing, inspections, commissions, and bonding	Variable	Apply revenue-based rates. In the first year, sales commissions are 2.0% and contract bonding fees are 1.5%.	Using flat dollar averages instead of percentages of contract value.
Fleet maintenance and fuel	Semi-variable	Keep the $4,500/month base in overhead, then flex added fuel and wear with active job volume.	Modeling all fleet spend as fixed while site count rises.
Installation trucks, lifting gear, racking, tools, and tablets	Semi-fixed	Treat the $670,000 equipment plan as capacity commitments for cash runway and depreciation planning, not normal monthly break-even unless financed or leased.	Treating equipment purchases as monthly overhead instead of capacity steps.

How does break-even shift as the project mix moves from lean fit-out work to full curtain wall and structural glass volume?

Scenario table

Break-even moves with project scale because revenue grows faster than overhead, but the full case also carries higher fixed cost. The lean case still clears break-even, yet the cushion is tighter than the base and full mixes.

Planning assumptions only. Actual results can change with project mix, job timing, and site conditions.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean fit-out backlog	$436,250	$102,100	$76,700	76.6%	$257,400	Still above break-even, but the cushion is thinner.
Base storefront and window flow	$872,500	$204,200	$76,700	76.6%	$591,600	Clear break-even cushion if volume stays steady.
Full curtain wall and structural mix	$2,438,700	$544,600	$114,600	77.7%	$1,779,400	Strong cushion, but overhead rises with scale.

What pressures the break-even plan first for a commercial glazing contractor?

Stress test

The base plan clears break-even with a wide cushion, so the first risk is margin erosion from labor, freight, and rework, not an instant loss. Even with a 20% revenue drop, the model still stays above break-even.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$100,200	$772,300 cushion	Plan clears break-even with room to spare.
Revenue shortfall	Monthly revenue drops 20% to about $698,000.	$100,200	$597,800 cushion	Delayed awards still leave cushion, but sales timing matters.
Fixed-cost increase	Fixed overhead rises 25% to about $95,900 a month.	$125,200	$747,300 cushion	Overhead creep eats cushion fast if it stays in place.
Margin pressure	Variable expenses rise 5 percentage points to about $247,800 a month at base revenue.	$107,100	$765,400 cushion	Labor overruns, freight, and punch-list rework pressure margin first.
Combined pressure	Revenue falls 20%, fixed overhead rises 25%, and variable expense pressure adds 5 points.	$133,900	$564,100 cushion	The business still clears break-even, but collections and change orders become critical.

What should a commercial glazing founder verify before signing the lease and buying the trucks?

Founder checklist

Before you commit, prove the pipeline clears the $100.2K monthly break-even line and can scale toward the Year 1 average of $872.5K a month. If that math is not real, fixed rent, payroll, and equipment will eat cash before the field team can catch up.

1Backlog$100.2K/mo

Confirm booked or probable backlog clears the break-even line before you sign, because any gap turns fixed costs into cash burn.

2Lease Load$12K/mo

Only take the warehouse and office if you truly need them, since $12K a month starts in Month 1 whether job flow is full or not.

3Payroll Base$47.9K/mo

Verify the six salaried roles are needed at launch, because about $47.9K a month in payroll has to clear before the first project margin shows up.

4Gross Margin80.1% gross margin

Check that the Year 1 job mix holds gross margin near 80.1%, because labor, material, and site costs must stay inside those unit numbers.

5Crew Ramp$872.5K/mo

Compare the job schedule to the Year 1 average of $872.5K a month, so crews, lifts, trucks, and project managers are not idle or overloaded.

6Cash Cushion$1.135M cash

Lock supplier terms for glass, frames, sealants, freight, and storage, keep the $1.135M opening cash cushion intact, and set rules for change orders, retainage, collections, and idle crew time before the $670K setup spend rolls out.