Commercial Waterproofing Break-Even Analysis: ~$28K/Month

Fixed costs $19.8K/mo Core overhead

Contribution margin 73% After variable costs

Break-even revenue $27.1K/mo Monthly target

Break-even timing Month 28 Forecast crossover

Break-even calculator

Use this to test whether monthly revenue can cover direct costs and the fixed cost base for a commercial waterproofing business.

Lean Base Full

Monthly revenue Revenue is the monthly top line that funds both direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct job costs that rise with each new project. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $30,000 $38,000 revenue - $8,000 variable expenses

Margin ratio

79%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the margin must cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a waterproofing contractor’s break-even model?

Cost classification

Bad classification can make Month 28 break-even look easier than it is. Keep crew wages, materials, commissions, and overhead separate so the monthly revenue target reflects real job economics.

Expense	Cost	Break-Even Treatment	Common Mistake
Office and Warehouse Rent	Fixed	Include $2,500 per month before contribution margin.	Tying rent to project volume.
Business Insurance & Licensing	Fixed	Include $800 per month as baseline overhead.	Dropping it from low-season months.
Utilities	Semi-variable	Model the $400 base, then watch usage as crews and shop activity rise.	Treating all utility spend as fixed.
Owner / Lead Project Manager and Lead Waterproofing Technician Wages	Semi-fixed	Use $13,750 per month in the first year, then step up as staffing expands.	Blending crew wages with materials.
Waterproofing Materials	Variable	Apply 12% of revenue in the first year.	Budgeting materials as a flat monthly spend.
Specialized Sealants & Adhesives	Variable	Apply 4% of revenue in the first year.	Hiding sealants inside general supplies.
Sales Commissions	Variable	Apply 7% of revenue in the first year.	Counting commissions as fixed payroll.
Annual Marketing Budget	Semi-fixed	Spread the $15,000 first-year budget across months, then step it up by year.	Assuming spend falls when sales fall.

How does break-even move from a lean launch to a full crew in commercial waterproofing?

Scenario table

Break-even climbs as the crew and overhead grow. Materials and commissions ease as a share of sales, but payroll and support costs rise, so the revenue needed to cover the fixed base gets bigger in each operating format.

These are planning assumptions built from the model inputs, so they show direction and scale, not a guaranteed result.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$281K	$76K	$205K	73%	$0K	Break-even is tight, so one slow month hurts.
Base ramp case	$610K	$146K	$463K	76%	$1K	This is the ramp point; coverage depends on steady close rates.
Full mature case	$834K	$175K	$659K	79%	$0K	Best cushion, but payroll growth still needs strong sales.

What breaks first if revenue slips or costs rise?

Stress test

The base plan needs about $281K revenue, $205K fixed costs, and a 73% contribution margin to break even. A 10% revenue drop creates about a $20K gap, while higher fixed costs or margin pressure can push break-even to $301K to $309K; both together raise it to $332K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$281K	$0 cushion	Only fully covered if jobs stay on plan.
Revenue shortfall	Revenue falls 10% to about $253K.	$281K	$20K gap	Slow project flow can turn the plan negative fast.
Fixed-cost pressure	Fixed costs rise 10% to about $226K.	$309K	$28K gap	Rent, insurance, and staffing creep widen the hole.
Margin pressure	Variable expenses rise from 27% to 32%.	$301K	$20K gap	Material pricing, overtime, or rework weakens coverage.
Combined pressure	Fixed costs rise 10% and contribution margin falls to 68%.	$332K	$51K gap	Delay, cost creep, and idle crews break the model.

Can this commercial waterproofing business carry break-even before you commit to the lease, vans, and crew?

Founder checklist

Before you sign the lease or buy the fleet, make sure booked work can support about $281K in monthly revenue and hold through the Month 28 break-even plan. The model also needs $182K in startup capex and about $19.25K a month in starting salaries plus fixed overhead before variable job costs.

1Revenue run-rate$281K/mo

Verify signed and likely work can reach this monthly pace, or the break-even date slips.

2Fixed load$19.25K/mo

Check that starting salaries and overhead stay covered before any variable job costs hit.

3Unit margin73% CM

Test each job after materials, sealants, commissions, and subcontractors so projects still fund growth.

4Crew rampMonth 13

Confirm the opening crew can deliver work until the model adds a project manager, junior technician, and admin support.

5Cash reserve$418K

Hold this cash cushion, because the model bottoms out in Month 29 and payback takes 48 months.

6Startup capex$182K

Fund vans, equipment, tools, safety gear, office setup, software, and storage before taking larger contracts.