Floor Refinishing Break-Even Analysis: About $23K Monthly Revenue

Fixed costs $17.3K/mo Overhead plus payroll

Contribution margin 79% After variable costs

Break-even revenue $21.8K/mo Monthly target revenue

Break-even timing Month 3 Model payback point

Break-even calculator

Use this to test monthly revenue, direct costs, and overhead against break-even for a floor refinishing service.

Lean Base Full

Monthly revenue Revenue sets the monthly margin available to cover overhead. $ Low sales High sales Variable expenses Direct costs rise with each project, like materials, supplies, fuel, and minor upkeep. $ Low direct cost High direct cost

Money available to cover fixed costs $47,400 $60,000 revenue - $12,600 variable expenses

Margin ratio

79%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin must cover, even before profit. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which floor refinishing expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead and job-linked costs are separated. Here, $4,750 of monthly overhead and $12,500 of Year 1 payroll must be covered before profit, while materials, supplies, fuel, and consumables rise with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office/Warehouse Rent	Fixed	Include in $4,750 monthly overhead.	Don’t spread across jobs.
Business Insurance	Fixed	Include before profit.	Don’t omit during slow months.
Materials Cost	Variable	Model at 12% of Year 1 revenue.	Don’t treat as overhead.
Direct Project Supplies	Variable	Model at 4% of Year 1 revenue.	Don’t bury in miscellaneous.
Vehicle Fuel & Project Travel	Variable	Model at 3% of Year 1 revenue.	Don’t ignore distance.
Equipment Consumables & Minor Maintenance	Variable	Model at 2% of Year 1 revenue.	Don’t confuse with startup equipment.
Salaried Owner and Technician Payroll	Fixed	Include $12,500 per month in Year 1.	Don’t count only hourly labor.

How does break-even shift across lean, base, and full floor refinishing setups?

Scenario table

Break-even rises fast as payroll and marketing expand. The lean setup tests demand with the least cash pressure, while the full setup only works when booked work can support the higher fixed load.

Planning assumptions only; actual results will move with pricing, mix, and booking pace.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean setup: owner plus one technician	$23,101	$4,851	$18,250	79.0%	$0	Lowest overhead, so it is best for demand testing.
Base setup: added technician and estimator	$36,712	$7,379	$29,333	79.9%	$0	Use this when scheduled crew capacity can stay booked.
Full setup: mature crew and marketing	$54,917	$9,334	$45,583	83.0%	$0	Highest fixed load, so it needs strong booked volume.

What breaks the floor refinishing break-even plan?

Stress test

The plan is close to break-even at $23,100 revenue and $18,250 fixed costs, but a 10% sales dip, a 10% fixed-cost jump, or a margin slip to 74% pushes it underwater. Watch rework, overtime, slow bids, fuel spikes, and coating waste.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to revenue, fixed costs, or margin.	$23,100	$0 gap	Tiny misses can flip profit.
Revenue shortfall	Revenue falls 10% to about $20,800.	$23,100	$2,300 gap	A small sales miss turns into a loss fast.
Fixed-cost increase	Fixed costs rise 10% to about $20,100.	$25,400	$2,300 gap	More overhead needs more booked work.
Margin pressure	Contribution margin falls from 79% to 74%.	$24,700	$1,600 gap	Rework or waste cuts the cash left per job.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and margin slips to 74%.	$27,100	$6,300 gap	Three hits at once create a sharp loss.

Is the floor refinishing business ready to buy equipment and add the first hires?

Founder checklist

This model can reach breakeven in Month 3, but only if you lock in at least $23.1K of booked work each month and hold the $100 hourly price. If jobs need discounts to fill the calendar, the break-even case gets thin fast.

1Booked Revenue$23.1K/mo

Verify the calendar can book at least this much each month before you add equipment or payroll.

2Price Floor$100/hr

Keep Standard Refinishing at $100 per hour and 20 billable hours per active customer, because discounting to fill the schedule cuts the money left after direct costs.

3Lead Cost$12K; $200 CAC

Check that the Year 1 marketing budget can buy leads near $200 CAC, so demand shows up before you add more payroll.

4Fixed Load$4.75K/mo

Confirm the monthly overhead and lock supplier terms for stains, finishes, abrasives, tape, sheeting, and cleaning supplies before you buy the $132K equipment and vehicle package.

5Crew RampOwner + 1 tech

Delay the second technician and project manager until booked work can support the higher wage load, because early hiring pushes breakeven out.

6Cash Cushion$798K min cash

Hold enough reserve through Month 2, because cash bottoms at $798,000 even with breakeven landing in Month 3.