Break-Even Point For Computer Repair Service: About $22K/Month

Fixed costs $13.2K Monthly base cost

Contribution margin 69.5% After variable costs

Break-even revenue $19.0K Monthly revenue target

Break-even timing Month 6 Model break-even point

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs shape break-even for a computer repair service.

Lean Base Full

Monthly revenue Revenue is the cash that covers direct costs and leaves margin for fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise with repair work, parts, fuel, and processing fees. $ Tight costs Heavy costs

Money available to cover fixed costs $19,250 $27,700 revenue - $8,450 variable expenses

Margin ratio

69%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that break-even revenue must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which repair shop expenses stay fixed, and which move with sales volume?

Cost classification

Break-even gets unreliable when recurring overhead, job-linked parts, and capacity hires are blended together. Keep fixed bills, revenue-based costs, and step-up staffing separate so Month 6 break-even is easier to test.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $2,500 per month in the overhead that must be covered before profit.	Spreading rent across jobs and making break-even look lower when volume rises.
Business Insurance	Fixed	Include $450 per month as a recurring operating expense from Month 1.	Treating insurance as optional until the shop has steady repair volume.
Owner/Lead Technician payroll	Fixed	Include the $75,000 annual salary as fixed payroll for the relevant monthly planning range.	Leaving owner pay out and overstating early profit and cash cushion.
Hardware Parts & Components	Variable	Model as 18.0% of revenue in the first year, declining to 13.0% by the fifth year.	Using one flat parts dollar amount even though parts rise with repair sales.
Software Licensing & Tools	Variable	Model as 4.0% of revenue in the first year, declining to 2.5% by the fifth year.	Booking all tools as fixed and missing usage-linked licensing drag.
Vehicle & Fuel Costs	Variable	Model as 6.0% of revenue in the first year, declining to 4.0% by the fifth year.	Including the $25,000 vehicle purchase in operating break-even instead of excluding capex.
Payment Processing Fees	Variable	Model as 2.5% of revenue in the first year, declining to 1.8% by the fifth year.	Ignoring card fees because each charge feels small at the invoice level.
Computer Technician payroll	Semi-fixed	Add as capacity steps up: 0.5 FTE in the first year, then 1.0 FTE from the second year.	Modeling technician labor as fully variable when payroll changes in staffing blocks.

How does break-even change from a lean solo setup to a fuller-service repair shop?

Scenario table

A Year 1 service value is about $290 and Year 3 is about $330, but customer allocations can overlap, so job counts are planning equivalents. Fixed costs still drive the gap, pushing break-even revenue higher as the shop adds staff and marketing.

Planning numbers only; actual mix, pricing, and labor can move break-even fast.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo setup	$19.1k	$5.8k	$13.3k	69.5%	$0	Thin cushion; small slippage can miss break-even.
Base first-year shop	$21.8k	$6.6k	$15.2k	69.5%	$0	This is the model’s break-even line, so overhead control matters.
Year 3 fuller-service shop	$38.2k	$9.6k	$28.6k	74.8%	$0	Highest fixed load; it needs much more revenue to stay safe.

What breaks this repair shop break-even plan?

Stress test

The plan breaks even at $21,835 a month, so the cushion is thin. A 10% revenue miss, 15% fixed-cost creep, or variable expense pressure to 35.5% can push the shop off break-even fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to costs or pricing.	$21,835	$0 gap	CAC above $120 or slow repeat monitoring sales cuts the cushion.
Revenue shortfall	Revenue runs 10% below break-even.	$21,835	$1,518 gap	A small demand miss quickly turns into lost cash.
Fixed-cost pressure	Fixed costs rise 15% from rent, payroll, and overhead creep.	$25,108	$3,273 gap	Higher overhead pushes the break-even line up fast.
Margin pressure	Variable expenses rise from 30.5% to 35.5% of revenue.	$23,519	$1,684 gap	Parts above 18% or delayed jobs squeeze margin first.
Combined pressure	Revenue runs 10% below break-even while fixed costs rise 15% and variable expenses rise to 35.5%.	$27,057	$4,785 gap	A small miss plus cost creep pushes the shop off break-even.

What should the founder verify before signing the lease and hiring for a computer repair service?

Founder checklist

Test paid lead flow, hourly pricing, and early job volume before you commit. The model only works if CAC stays near $120, core overhead stays near $5.05K a month, and cash stays above the $818K low point through Month 6 break-even.

1Lead Flow≈$120 CAC

Verify paid leads can stay near $120 CAC before you sign the $2,500 lease, because fixed costs start before the first repair ticket.

2Core Overhead$5.05K/mo

Verify the base rent-and-office load fits before hiring, because the fixed bill starts at $5,050 a month before salaries.

3Hourly Margin69.5% CM

Verify each service hour clears the 30.5% variable load from parts, software, fuel, and payment fees, so repair labor still funds overhead.

4Job Capacity75 jobs/mo

Verify the owner can handle about 75 customer-equivalent jobs a month before adding the Computer Technician in Month 7, or service delays will hit repeat work.

5Parts Stock$18K stock

Verify parts sourcing, diagnostic steps, and the warranty policy before carrying the $18,000 initial inventory, because hardware repairs can tie up cash fast.

6Cash Cushion$818K floor

Verify cash stays above the $818,000 low point through Month 2 and into the Month 6 break-even target, because setup and staffing costs hit early.