E-Waste Recycling Break-Even Analysis: $162K Monthly Revenue

Fixed costs $30.6K/mo Core overhead

Contribution margin 70% After variable costs

Break-even revenue $43.7K/mo Revenue target

Break-even timing Month 22 Model break-even

Break-even calculator

Use this to test how monthly revenue, variable expenses, and fixed costs line up with break-even.

Lean Base Full

Monthly revenue Revenue creates the margin that pays fixed overhead. $ Low sales High sales Variable expenses These are the direct costs tied to collection and processing. $ Low direct cost High direct cost

Money available to cover fixed costs $165,708 $222,427 revenue - $56,719 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which e-waste recycling expenses stay fixed, and which move with sales?

Cost classification

Break-even gets noisy when route labor, fuel, disposal, and processing are treated like rent. In the first year, 18% processing burden and 12% fleet burden must come off revenue before fixed overhead is covered.

Expense	Cost	Break-Even Treatment	Common Mistake
Processing Facility Rent	Fixed	Use $18,500 per month as baseline overhead from Month 1 through Month 60.	Allocating rent per pickup and hiding the true monthly hurdle.
Equipment Maintenance & Repairs	Semi-fixed	Start with $8,200 per month, then step it up when added throughput strains equipment capacity.	Treating repairs as fully fixed even when higher processing volume drives wear.
Insurance & Bonding	Fixed	Use $5,800 per month as recurring overhead within the current operating range.	Moving insurance into variable expense and overstating contribution margin.
Certifications & Compliance	Fixed	Use $3,500 per month as required operating overhead for compliant service delivery.	Leaving compliance out of break-even because it doesn’t attach to one job.
Office Rent & Utilities	Semi-variable	Use $4,200 per month as the base, with usage pressure as staff and facility activity rise.	Assuming utilities stay flat while processing hours and office headcount increase.
Processing & Material Handling Costs	Variable	Deduct 18% of revenue in the first year before calculating contribution margin.	Modeling disposal, sorting, and handling like fixed overhead instead of revenue-linked burden.
Fleet Operations & Collection Costs	Variable	Deduct 12% of revenue in the first year for route activity tied to collection volume.	Treating fuel, route time, and collection expense as fixed when volume drives the bill.
Payroll Staffing	Semi-fixed	Model salaries in steps because FTE counts rise by year across drivers, technicians, sales, operations, security, and admin roles.	Spreading payroll evenly per job and missing the cash jump when the next hire starts.

How does break-even shift across lean, base, and full operating levels for this e-waste recycler?

Scenario table

Fixed monthly costs are $113,250, and Year 1 contribution margin is 70%. So revenue below about $161,800 stays in the red, while revenue above it starts building cushion.

Planning cases use model assumptions, not guaranteed customer mix, recovery yield, or resale prices.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean route-density test	$145,607	$43,682	$113,250	70%	-$11,325	Below break-even, so loss risk stays high.
Base Year 1 mix	$161,786	$48,536	$113,250	70%	$0	At break-even, so small cost slips turn it negative.
Full-capacity Year 1 mix	$194,143	$58,243	$113,250	70%	$22,650	Above break-even, so each extra sale adds cushion.

What breaks the break-even plan for this e-waste recycling business?

Stress test

Base break-even is about $161,786 a month on a 70% contribution margin and $113,250 of fixed monthly costs. A 10% revenue miss leaves an $11,325 gap, while a small hit to margin or overhead pushes the target above $174k and cash gets tight fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$161,786	$0 cushion	No cushion, so timing matters.
Revenue shortfall	Revenue falls 10%.	$161,786	$11,325 gap	Slower device intake cuts cash quickly.
Fixed-cost pressure	Fixed monthly costs rise 10%.	$177,964	$16,178 gap	Facility overhead pushes break-even up.
Margin pressure	Contribution margin slips from 70% to 65%.	$174,231	$12,445 gap	Weaker recovery or higher disposal hurts margin.
Combined pressure	Revenue falls 10%, margin slips to 65%, and fixed costs rise 10%.	$191,654	$29,930 gap	Weak intake plus cost pressure creates a deep monthly loss.

What should the founder verify before signing the facility lease and buying the fleet?

Founder checklist

Don’t lock the lease, vehicles, or processing gear until signed collection work can support about $161.8K in monthly revenue and the cost stack still clears a 70% contribution margin. The first two years run negative, so this is a cash test as much as an operating test.

1Collection contracts$161.8K/mo

Secure monthly collection work before the lease, because the model needs this revenue level to cover the break-even load.

2Contribution mix70% CM

Check that 18% processing and 12% fleet costs still leave a 70% contribution margin, or break-even slips fast.

3Fixed load$43.0K/mo

Confirm the monthly facility and admin load stays near $43.0K before payroll, since that cost hits every month.

4Staffing ramp21 FTE by Y3

Make sure the opening team can handle intake and processing now, because headcount rises to 21 FTE in Year 3.

5Cash runway$1.086M

Plan for a cash trough of about $1.086M in Month 29, with Year 1 EBITDA at negative $878K and Year 2 at negative $258K.

6Compliance stackBefore intake

Lock data destruction, insurance, bonding, certifications, reporting, and disposal outlets before intake starts, or devices will sit unprocessed.