Fire Curtain Installation Break-Even Analysis: $88K Monthly Revenue

Fixed costs $68.6K/mo Monthly base

Contribution margin 70% After variable costs

Break-even revenue $98.0K/mo Monthly sales target

Break-even timing Month 6 First payback point

Break-even calculator

Test whether monthly revenue covers direct project costs and monthly overhead for a fire curtain installation contractor.

Lean Base Full

Monthly revenue Revenue is the pool that pays direct costs first, then fixed overhead. $ Low volume High volume Variable expenses These are direct project costs that rise as installation and service work grows. $ Lower costs Higher costs

Money available to cover fixed costs $233,852 $323,000 revenue - $89,148 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly overhead costs break-even has to cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a fire curtain installation contractor?

Cost classification

Break-even only works if job costs move with revenue and baseline overhead stays fixed. In the first operating year, direct variable load is 30.0% of revenue, so one wrong label can distort the Month 6 break-even point.

Expense	Cost	Break-Even Treatment	Common Mistake
Hardware and Curtain Components	Variable	Model at 18.0% of first-year revenue because components rise with installed project volume.	Treating stocked components as fixed overhead.
Subcontracted Specialized Electrical	Variable	Model at 5.0% of first-year revenue and keep it tied to jobs needing specialized electrical work.	Burying subcontractor work in payroll.
Project Specific Freight and Logistics	Variable	Model at 4.0% of first-year revenue because freight follows project count, project size, and delivery distance.	Averaging freight into rent.
Sales Commissions	Variable	Model at 3.0% of revenue so each booked job carries its true selling drag.	Ignoring commission drag at break-even.
Warehouse and Office Rent	Fixed	Include $6,500 per month in fixed overhead for the relevant monthly planning range.	Sizing space before backlog supports it.
General Liability and Errors and Omissions Insurance	Fixed	Include $2,200 per month as required baseline coverage before calculating contribution margin.	Calling required coverage optional.
Fleet Maintenance and Fuel	Semi-variable	Start with the $1,800 monthly baseline, then track usage pressure as jobs, miles, and site visits rise.	Missing usage spikes.
Lead Installation Technician Payroll	Semi-fixed	First-year staffing is 2.0 FTE at $85,000 each, or $170,000 per year; add capacity in hiring steps.	Assuming labor flexes perfectly.

How does break-even shift from a lean launch to a full workload?

Scenario table

Payroll starts on day one, so the lean model is not owner-only. As revenue and contribution margin rise, break-even gets easier to clear, but higher headcount and marketing also lift the fixed-cost floor.

Planning assumptions only; actual break-even will move with job mix, labor timing, and project delays.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch, Year 1 staffed model	$127,333	$38,200	$61,633	70.0%	$27,500	Clears the $88,047 break-even line, but the cushion is still modest.
Base growth, Year 2 operating plan	$238,833	$68,800	$69,967	71.2%	$100,067	Clears the $98,268 break-even line with a stronger buffer.
Full workload, Year 5 scaled plan	$514,250	$129,591	$123,300	74.8%	$261,359	Clears the $164,840 break-even line and has room for slower projects.

What breaks the break-even plan for this fire curtain installation business?

Stress test

The base plan clears break-even with a cushion, but delayed awards, rework, freight overruns, insurance spikes, or hiring before booked work can shrink it fast. A combined sales miss and cost creep can turn that cushion into a gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$88,047	$39,286 cushion	Covered now, but the cushion is not wide.
Revenue shortfall	Monthly revenue falls 15% to $108,233.	$88,047	$20,186 cushion	A slower award cycle cuts the cushion in half.
Fixed-cost pressure	Fixed monthly costs rise 10% to $67,797.	$96,852	$30,481 cushion	Insurance or overhead creep eats the safety margin.
Margin pressure	Variable expenses rise from 30% to 35% of revenue.	$94,821	$32,512 cushion	Rework or freight overruns push the plan closer to break-even.
Combined pressure	Revenue falls 20%, variable expenses rise to 35%, and fixed costs rise 10%.	$104,303	$2,437 gap	Delayed awards plus cost creep can erase the cushion.

Can you prove enough signed backlog, crew capacity, and cash before you commit to the launch spend for fire curtain installation?

Founder checklist

Don’t lock in rent, vans, or hires until signed or near-signed work can cover about $88,000 a month. This model also needs a $624,000 cash floor in Month 6, so break-even only works if backlog, vendor pricing, and crew timing line up first.

1Signed backlog$88K/mo

Verify signed or near-signed work can cover about $88,000 a month before you lock in fixed costs.

2Margin stack70% gross

Check that hardware, curtain components, subcontracted electrical, freight, and sales commissions stay near plan so margin does not slip below break-even math.

3Crew ramp2.0 FTE

Confirm the Year 1 installation load fits 2.0 lead technicians, and hold the $95,000 van plan plus $45,000 lift spend until backlog is real.

4Fixed load$13.3K/mo

Make sure warehouse rent, insurance, fleet, software, certifications, and utilities are truly needed, since they create a fixed base before the first job starts.

5Cash runway$624K

Keep enough cash to absorb the Month 6 low point, because the model’s minimum cash need reaches $624,000 before the business has enough cushion.

6Acquisition flow$45K / $1.5K

Test whether the Year 1 marketing budget and $1,500 CAC can produce enough pipeline to support launch demand without buying growth too early.