Elevator Maintenance Break-Even Analysis: $93K Monthly Revenue

Fixed costs $36.3K/mo Base overhead

Contribution margin 71% After variable costs

Break-even revenue $51.1K/mo Monthly target

Break-even timing Month 7 First profitable month

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and fixed costs before the month closes.

Lean Base Full

Monthly revenue Monthly revenue sets the pool that pays variable costs and fixed overhead. $ Slow month Busy month Variable expenses Direct costs like parts, fuel, and commissions rise as work volume grows. $ Lower cost Higher cost

Money available to cover fixed costs $72,400 $102,000 revenue - $29,600 variable expenses

Margin ratio

71%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business has to cover before profit starts. $ Lean setup Scaled team

Break-even chart Revenue Total costs

Which elevator maintenance expenses are fixed, and which move with sales?

Cost classification

Break-even works only if fixed overhead and sales-linked expenses are split cleanly. In this model, payroll and facility costs set the monthly hurdle, while parts, sensors, fuel, and commissions reduce margin as revenue grows.

Expense	Cost	Break-Even Treatment	Common Mistake
CEO / Operations Manager and Administrative Assistant payroll	Fixed	Include the first-year salary base of $200,000 per year, or about $16,667 per month, in recurring overhead.	Treating office leadership and admin payroll as optional before Month 7 break-even.
Lead and Junior Elevator Technician payroll	Semi-fixed	Model route capacity in hiring steps; first-year technician payroll is $310,000 per year before all routes are full.	Ignoring technician payroll until service routes reach full utilization.
Parts & Equipment Inventory	Variable	Reduce contribution margin by 10% of revenue in the first year, then use the lower annual rates in later years.	Burying parts usage in fixed overhead and overstating gross margin.
IoT Platform & Sensor Costs	Variable	Apply 5% of revenue in the first year to advanced maintenance work tied to connected sensors and platform usage.	Pricing advanced contracts without the sensor and gateway load.
Vehicle Fuel & Maintenance	Variable	Use 6% of revenue in the first year because dispatch volume, drive time, and service calls move with sales activity.	Confusing route fuel and repairs with the fixed fleet lease line.
Vehicle Fleet Lease/Depreciation	Fixed	Include the recurring $2,500 monthly fleet charge in fixed overhead for the relevant planning range.	Tying the whole lease charge to each job instead of the monthly base.
Office rent, utilities, insurance, software, benefits, and professional services	Fixed	Carry these recurring lines as about $10,000 per month before wages, marketing, and fleet lease.	Leaving small monthly overhead lines out because each one looks immaterial.
Annual Marketing Budget	Semi-fixed	Spread the first-year $50,000 budget as about $4,167 per month unless campaigns are timed in larger pushes.	Treating all marketing as purely variable just because CAC is measured per customer.

How does break-even move across lean, base, and full elevator maintenance scenarios?

Scenario table

Fixed costs stay near $663,000 a month in all three cases, so the revenue mix drives break-even. At $700,000, the model sits about $166,000 short; at $933,000, it is flat; at $1,166,000, it adds about $166,000 of cushion.

Planning cases built from model assumptions, not guarantees; actual results will move with contract mix, service timing, and technician use.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean route-book case	$700,000	$203,000	$663,000	71%	-$166,000	Still below break-even, so cash stays tight.
Base contract-load case	$933,000	$271,000	$663,000	71%	$0	This is the break-even line, so cushion is thin.
Full project-volume case	$1,166,000	$338,000	$663,000	71%	$166,000	Above break-even, with a real operating cushion.

What pushes elevator maintenance break-even later?

Stress test

The plan is tight: about $933k of revenue, 29% variable expense, and $663k of fixed cost leave almost no cushion. Slow contract starts, heavier parts use, or fixed-cost creep can push break-even into a later month.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$933k	$0 gap	Near break-even, so small misses matter.
Revenue shortfall	Revenue drops 10% to $840k.	$933k	$66k gap	Late service agreements and slower contract ramp widen the hole.
Fixed-cost increase	Fixed costs rise 10% to $729k.	$1.028M	$66k gap	Rent, payroll, and fleet creep can delay break-even.
Margin pressure	Variable expense rate rises to 34%.	$1.005M	$47k gap	Parts inflation, overtime, and subcontracting cut margin.
Combined pressure	Revenue drops 10%, variable rate rises to 34%, and fixed costs rise 10%.	$1.105M	$174k gap	Low route density and cost creep push break-even out.

What should you verify before you lock in vans, payroll, and warehouse space?

Founder checklist

Don’t lock in vans, payroll, or warehouse space until the recurring contract pipeline can support the model’s about $933K monthly revenue path. The business also needs $400K of launch capex and a $419K cash floor in Month 6 before breakeven in Month 7.

1Revenue Path$933K/mo

Verify the recurring contract pipeline can realistically reach this monthly run rate before you add more fixed overhead.

2CAC Check$1.5K CAC

Test whether the Year 1 marketing budget of $50K can buy enough customers at a $1,500 CAC, because that only funds about 33 wins before other costs.

3Contract Price$450 / $750

Check that basic maintenance at $450 and proactive IoT maintenance at $750 still leave room after the 29% variable load.

4Payroll Load7 FTE

Keep Year 1 staffing near the 7 FTE plan until repeat contracts are steady, since the salary stack is about $595K a year, or roughly $49.6K a month.

5Launch Capex$400K

Make sure you can fund vans, tools, office setup, warehouse systems, sensor stock, hardware, and CRM before signing long fixed leases.

6Cash Floor$419K

Hold cash above the $419K Month 6 low, and confirm insurance, dispatch, parts sourcing, emergency response, and route coverage before fixed leases.