Crematorium Break-Even Analysis: About $83K Monthly Revenue

Fixed costs $70.6K/mo Recurring base

Contribution margin 85% After variable spend

Break-even revenue $83.1K/mo Revenue needed monthly

Break-even timing Month 1 Model break-even point

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and the fixed monthly cost base.

Lean Base Full

Monthly revenue Revenue sets the pool that covers variable costs and fixed overhead. $ Low revenue High revenue Variable expenses These costs rise with each added service and reduce contribution margin. $ Low direct cost High direct cost

Money available to cover fixed costs $530,716 $614,967 revenue - $84,251 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lower fixed cost Higher fixed cost

Break-even chart Revenue Total costs

Which crematorium expenses are fixed, variable, or semi-variable for break-even?

Cost classification

Break-even is only reliable if the $22,000 facility lease stays in overhead, revenue-linked items stay variable, and Year 1 payroll of about $36,083/month is treated as capacity that steps up with staffing.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease	Fixed	Include the $22,000 monthly lease in overhead for every break-even month.	Allocating rent per cremation and hiding the true monthly hurdle.
Payroll	Semi-fixed	Use about $36,083/month in Year 1, then step it up as full-time roles increase.	Treating every role as per-cremation labor instead of staffed capacity.
Urns & Cremation Containers	Variable	Model at 5.0% of Year 1 service revenue, falling to 4.0% by Year 5.	Using a flat dollar amount that ignores service volume.
Memorial Products	Variable	Match to service mix, starting at 3.0% of Year 1 revenue.	Applying the same margin to direct cremations and memorial packages.
Utilities	Semi-variable	Start with the $5,000 monthly base, then test higher usage as volume rises.	Assuming utilities stay flat when retort use increases.
Facility Maintenance	Semi-variable	Include the $2,200 monthly baseline and allow spikes tied to equipment use.	Spreading repairs evenly and missing retort-driven service risk.
Facility Insurance	Fixed	Keep the $1,800 monthly premium in fixed overhead.	Allocating insurance per case and overstating variable expense.
Marketing & Digital Advertising	Variable	Model as revenue-linked at 4.0% in Year 1 unless spend is contractually fixed.	Locking all marketing into overhead without testing acquisition spend.

How does break-even shift from a lean opening setup to a base model and then a full crematorium build?

Scenario table

Break-even gets easier as revenue density rises faster than payroll and overhead. The full case has the widest cushion, but the real test is steady referral volume and high utilization.

Planning assumptions only; actual results will move with referral flow, staffing mix, and local demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening setup	$168.8k	$25.3k	$70.6k	85.0%	$72.9k	Above break-even, but the cushion is still modest.
Base stabilized setup	$631.7k	$86.6k	$98.6k	86.3%	$446.6k	This is the core case: revenue clears break-even with a solid margin.
Full-scale operating setup	$1.60m	$199.6k	$137.1k	87.5%	$1.26m	Strongest cushion, but only if staffing stays matched to demand.

What breaks the break-even plan for a crematorium?

Stress test

The plan clears break-even now, with an $85.7k cushion. The real risk is a revenue slide or cost creep: once revenue falls below about $83.1k, or utilities and maintenance rise faster than volume, the cushion starts to vanish.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$83,098	$85,722 cushion	The base plan has room, but not unlimited room.
Revenue shortfall	Revenue drops 20% from the base plan.	$83,098	$51,958 cushion	The plan still clears break-even, but the cushion drops fast.
Fixed-cost pressure	Fixed costs rise 15%.	$95,562	$73,258 cushion	Lease, utilities, and maintenance are the main pressure points.
Margin pressure	Variable expenses rise from 15% to 20% of revenue.	$88,292	$80,528 cushion	A small margin slip pushes break-even up quickly.
Combined pressure	Revenue drops 20%, variable expenses rise to 20%, and fixed costs rise 15%.	$101,536	$33,520 cushion	The plan still works, but profit falls to about $26,817.

What should you verify before signing the lease and ordering the retort?

Founder checklist

Check the site, equipment load, and referral volume before you commit. In this model, fixed costs run about $70.6K a month before variable costs, and minimum cash drops to $638K by Month 6.

1Site Fit$250K retort

Verify zoning, environmental capacity, gas, power, and ventilation before you sign the lease, because one bad site can strand the retort and break the launch plan.

2Launch Demand$168.8K/mo

Test referral demand and opening case flow before you spend on marketing, because Year 1 revenue is modeled at $168,820 a month and underfill hits break-even fast.

3Fixed Load$70.6K/mo

Count the $34.6K monthly facility overhead plus about $36.1K in Year 1 payroll before you sign, because the fixed load is roughly $70.6K a month.

4Pricing Mix85% CM

Validate $1,000 transport, $2,200 direct service lines, and $4,200 arrangement or memorial services against urn, memorial product, fuel, and marketing costs, because the model needs about an 85% contribution margin.

5Staffing Ramp5 roles, 1 FTE

Phase hiring against utilization, starting with 1 licensed cremationist, 1 counselor, 1 transport specialist, 1 memorial host, and 1 admin support role, since Year 1 payroll is about $36.1K per month.

6Cash Cushion$638K min

Keep enough runway to cover the Month 6 low point, because minimum cash is $638,000, payback takes 13 months, and marketing can't outrun confirmed case volume.