Drapery Installation Break-Even Analysis: About $30K Monthly Revenue

Fixed costs $20.6K/mo Year 1 base

Contribution margin 77.5% After variable costs

Break-even revenue $26.6K/mo Monthly target

Break-even timing Month 6 Forecast month

Break-even calculator

Test how monthly revenue, direct costs, and overhead line up with break-even for a drapery installation service.

Lean Base Full

Monthly revenue Higher sales create more margin to cover fixed costs. $ Lower sales Higher sales Variable expenses Direct costs like hardware, fuel, and fees rise with work. $ Lower costs Higher costs

Money available to cover fixed costs $30,548 $39,417 revenue - $8,869 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs Overhead and staffing that margin has to cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which drapery installation expenses are fixed, and which move with sales?

Cost classification

Break-even only works if each expense is treated the right way. Here’s the quick math: first-year revenue-linked charges run near 22.5% before wages, while scheduled overhead starts before the first job is booked.

Expense	Cost	Break-Even Treatment	Common Mistake
Small Warehouse Rent	Fixed	Include $2,200 per month in fixed overhead for the relevant planning range.	Scaling rent with each installation job.
Scheduling and CRM Software	Fixed	Include $150 per month as a baseline admin expense.	Treating the subscription as booking-driven.
Utilities and Internet	Semi-fixed	Use the $400 monthly base, then step it up only when operating scale changes.	Making the full amount variable with revenue.
Installation Consumables and Hardware	Variable	Deduct as a revenue-linked charge, starting at 8.5% in the first year and falling to 6.5% by the mature year.	Parking materials in fixed overhead.
Subcontractor Labor Overflow	Variable	Model as job-volume leakage, rising from 5.0% of revenue in the first year to 7.0% in the mature year.	Assuming every install hour is covered by salaried staff.
Fuel and Vehicle Maintenance	Semi-variable	Tie the usage portion to routes and job volume, starting at 6.0% of revenue in the first year.	Treating route-heavy months like quiet months.
Payment Processing Fees	Variable	Deduct 3.0% of revenue when calculating contribution margin.	Budgeting card fees as a flat bank charge.
Installer, Office, and Sales Wages	Semi-fixed	Treat wages as hiring steps as headcount moves from three early roles to larger crews and sales coverage.	Spreading payroll smoothly across every new sale.

How does break-even shift from a lean first-year crew to a fuller Year 5 setup?

Scenario table

Break-even moves up as payroll and overhead step up. Lean clears the line with the least revenue, while base and full need more sales volume and tighter scheduling to keep the cushion.

Planning case only. These figures are model assumptions, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean first-year setup	$39.4k	$8.9k	$20.6k	77.5%	$10.0k	Small cushion; a slow launch leaves little room for waste.
Base Year 3 setup	$102.9k	$22.7k	$34.8k	77.9%	$45.3k	Healthy cushion, but payroll steps up, so keep premium jobs flowing.
Full Year 5 setup	$176.4k	$38.3k	$50.6k	78.3%	$87.5k	Largest cushion, but missed utilization hurts because fixed overhead is highest.

What breaks first if bookings slip or overhead jumps?

Stress test

The base plan clears break-even at about $300k, with roughly $94k of room. A 15% revenue drop still leaves a cushion, but a 10% overhead hike or a 5-point margin hit moves break-even up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$300k	$94k cushion	The core plan clears break-even with room to absorb normal noise.
Revenue shortfall	Revenue falls 15% from plan.	$300k	$27k cushion	A weaker booking month still covers the core cost base, but the buffer gets thin.
Fixed-cost increase	Fixed overhead rises 10%.	$329k	$65k cushion	Higher overhead eats into the cushion fast and raises the bar for sales.
Margin pressure	Variable expense rate rises 5 points.	$320k	$74k cushion	Fee or labor drift pushes break-even higher, but the plan still clears it.
Combined pressure	Revenue falls 15%, fixed overhead rises 10%, and variable expense rate rises 5 points.	$352k	$17k gap	Small losses show up fast when demand softens and costs move against you.

Can you prove break-even before you sign the warehouse lease and hire the crew?

Founder checklist

Don't sign the warehouse lease or add headcount until booked installs, cash, and equipment all line up with Month 6 break-even. The model needs $808K minimum cash in Month 2, and Year 1 marketing at $12K with $85 CAC has to keep lead flow steady enough to fill the schedule.

1Revenue path$176.4K/mo

Confirm booked jobs can scale toward the Year 5 monthly run rate before you commit to fixed overhead.

2Lead flow$12K / $85 CAC

Check that Year 1 marketing spend at an $85 CAC can keep enough installs booked to fill the calendar.

3Rent load$2.2K/mo

Make sure booked installs already cover warehouse rent from Month 1, since empty space burns cash before revenue scales.

4Gross margin77.5% CM

Verify pricing still leaves about 77.5% after consumables, overflow labor, fuel, and processing fees, because that margin funds fixed overhead.

5Crew rampMonth 6 / 13

Confirm the owner, lead installer, assistant installer, and office coordinator can ramp on schedule, and have the van, tools, ladders, laser measuring gear, and tablets ready before field work starts.

6Cash reserve$808K

Hold enough cash for the Month 2 low point, because the model needs $808K minimum cash and does not pay back for 15 months.