Daylight Harvesting Installation Break-Even: $75K Monthly Revenue

Fixed costs $46.1K/mo Year 1 base

Contribution margin 71% After variable costs

Break-even revenue $64.9K/mo Monthly target

Break-even timing Month 16 First breakeven month

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs shape break-even for daylight harvesting installations.

Lean Base Full

Monthly revenue Revenue is the cash base that has to cover variable and fixed costs. $ Slow start Mature run Variable expenses Direct project costs rise as install work, freight, and sales effort grow. $ Tight costs Higher load

Money available to cover fixed costs $35,677 $50,250 revenue - $14,573 variable expenses

Margin ratio

71%

Covers fixed costs

$15,840 short

Fixed monthly costs This is the monthly overhead your margin has to cover. $ Lean overhead Larger team

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a daylight harvesting installer?

Cost classification

For this installer, break-even is only reliable if monthly overhead is kept separate from revenue-linked job inputs. Misclassifying field payroll or fleet usage can move the Month 16 break-even target by months.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Rent	Fixed	Carry $6,500 per month in fixed overhead from Month 1 through Month 60.	Tying rent to project count instead of treating it as a monthly cash load.
Design and Modeling Software Licenses	Fixed	Include $1,200 per month before contribution margin, since the license bill does not move with each job.	Dropping software from break-even because it feels like back-office overhead.
Direct Hardware and Components	Variable	Model as 14.0% of first year revenue, then use the annual percentage schedule as purchasing improves.	Using one flat dollar amount even though sensors, controls, and components scale with sales.
Subcontracted Electrical Labor	Variable	Apply 6.0% of first year revenue, with the lower annual rates flowing through gross margin.	Putting subcontract labor in fixed payroll and overstating margin on larger jobs.
Project Logistics and Freight	Variable	Use 4.0% of first year revenue, then reduce it by the forecast schedule as job planning tightens.	Ignoring freight on small projects where delivery runs can erase bid margin.
Sales Commissions and Travel	Semi-variable	Start with the 5.0% revenue charge, then split commission from travel if trip costs become lumpy.	Treating all selling expense as fixed salary and missing the cash hit from winning more jobs.
Fleet Fuel and Maintenance	Semi-variable	Use the $1,500 monthly base, then watch mileage because job volume can push actual spend above the base.	Assuming the fleet line stays fixed when more site visits drive miles, fuel, and repairs.
Lead Field Technician Payroll	Semi-fixed	Model crew capacity in steps: 2.0 FTE in the first year, rising to 6.0 FTE by Year 5.	Treating crew payroll as fully variable when underused crew time still hits cash.

How does break-even shift from a lean launch to a full rollout for this daylight harvesting installer?

Scenario table

Lean stays under break-even, base moves into a small cushion, and full rollout has clear room to absorb overhead. The main driver is the variable cost ratio easing from 29.0% to 24.2% as revenue scales.

Planning numbers are model assumptions, not guarantees; staffing, project mix, and timing will move the result.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch year	$50.3k	$14.6k	$51.5k	71.0%	-$15.8k	Still below break-even; launch risk is high.
Base second-year case	$113.2k	$31.5k	$56.9k	72.2%	$24.8k	Near break-even; the cushion is small but real.
Full rollout year	$299.7k	$72.5k	$99.4k	75.8%	$127.7k	Well above break-even; overhead is covered with room left.

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

Stress test

The base plan has about a $218k monthly cushion, but it gets thin fast. A 20% sales dip, a 5-point margin hit, or 15% overhead creep each tighten break-even; combined, they flip the month to about an $81k gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$829.6k	$218.1k cushion	Idle field crew time still matters here.
Revenue shortfall	Monthly revenue falls 20%.	$829.6k	$54.1k cushion	Slow bid wins and delayed starts shrink the buffer.
Fixed-cost increase	Fixed costs rise 15%.	$954.0k	$128.1k cushion	Overhead creep hits fast when rent or fleet costs rise.
Margin pressure	Contribution margin drops 5 points.	$891.4k	$161.4k cushion	Higher hardware or labor cost cuts the cushion.
Combined pressure	Revenue falls 20%, margin drops 5 points, and fixed costs rise 15%.	$1,024.8k	$80.7k gap	This case turns the month into an $81k gap.

Is your pipeline, cash, and crew ready before you lock the lease and fleet?

Founder checklist

Before you lock the lease, fleet, and hiring plan, check that signed or near-signed work can support roughly $754k/month by Month 16. Then verify supplier quotes, staffing, and cash keep the model above its $443k low point; otherwise the break-even date slips.

1Project Pipeline$754k/mo

Confirm near-signed retrofit work can fill the break-even revenue target before you commit to the lease and fleet.

2Gross Margin71% CM

Validate quotes keep Year 1 hardware at 14% of revenue and subcontracted labor at 6%, or the margin you need for break-even shrinks fast.

3Fixed Load$51.5k/mo

Make sure rent, software, insurance, fleet, admin, and Year 1 payroll stay fundable while revenue ramps.

4Field Capacity2.0 FTE

Test whether the Year 1 lead field technician team can cover the install ramp without overtime, rework, or delayed handoffs.

5Cash Cushion$443k

Secure working capital near the model’s minimum cash need, since the cash trough lands in Month 16.

6Lead Spend$24k

Keep Year 1 marketing at $24k until lead quality proves out and CAC trends near $1,200.