Underground Fuel Tank Removal Break-Even: About $91K/Month

Fixed costs $60.3K/mo Year 1 overhead

Contribution margin 71% After variable costs

Break-even revenue $85.6K/mo Cover monthly overhead

Break-even timing Month 4 Model payback point

Break-even calculator

Test monthly revenue against direct costs and the fixed cost base to see where break-even lands.

Lean Base Full

Monthly revenue Revenue sets the pool that must cover variable expenses and fixed costs. $ Lower revenue Higher revenue Variable expenses These are direct costs that rise with each project, including disposal, fuel, permits, and field supplies. $ Lower costs Higher costs

Money available to cover fixed costs $492,022 $671,333 revenue - $179,311 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin has to beat. $ Lower fixed Higher fixed

Break-even chart Revenue Total costs

Which underground fuel tank removal expenses are fixed, and which move with sales?

Cost classification

Break-even gets reliable only when fixed overhead and payroll sit above the line, while job costs stay tied to revenue. If disposal fees or permits are treated as fixed, the Month 4 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Equipment Yard and Office Rent	Fixed	Include $6,500/month in overhead before profit.	Treating yard rent as a per-job charge.
Environmental Liability Insurance	Fixed	Include $4,200/month as required monthly overhead.	Assigning the full policy to one large job.
Regulatory Licensing Fees	Fixed	Plan $1,100/month as overhead in every month.	Leaving licensing out until renewal pressure hits.
Operations, Engineering, Field, Coordination, Sales, and Compliance Payroll	Fixed	Include $547,000/year in the first year break-even base.	Excluding crew payroll because labor feels job-specific.
Disposal and Waste Fees	Variable	Model at 15.0% of revenue in the first year.	Using one flat dump fee for every tank.
Equipment Fuel and Maintenance	Semi-variable	Model at 8.0% of revenue in the first year, tied to mobilization and use.	Ignoring idle equipment and heavy-use months.
Site Specific Permits	Variable	Price into each scope at 4.0% of revenue in the first year.	Quoting permit-heavy jobs like simple removals.
Software and GPR Subscriptions	Semi-fixed	Carry $600/month even when job volume is light.	Dropping required tools from low-volume months.

How does break-even change from a lean month to a full operating month in underground fuel tank removal?

Scenario table

Break-even shifts fast as job volume and scope rise because the month carries about $641K of fixed costs. More soil work lifts revenue, but it also adds disposal, lab, and delay risk.

Planning assumptions only; actual results can change with scope, permits, and site conditions.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean tank-removal month	$684K	$202K	$641K	70.5%	-$159K	Still below break-even, so pipeline risk stays high.
Base mixed-scope month	$1,026K	$303K	$641K	70.5%	$82K	Clears break-even and starts building a small cushion.
Full multi-job month	$2,565K	$757K	$641K	70.5%	$1,168K	Strong cushion, but soil work can still slow cash flow.

What breaks the break-even plan for underground fuel tank removal?

Stress test

Here’s the quick math: the base plan clears break-even in Month 4 with about an $82K cushion, but a small revenue miss, a 15% fixed-cost jump, or a 5-point margin hit can flip that to a loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the base case.	$909K	$82K cushion	Thin but positive; bookings and travel must stay tight.
Revenue shortfall	Revenue slips to $855K, with the 70.5% margin unchanged.	$909K	$38K gap	A small miss in booked removals turns the cushion into a loss.
Fixed-cost pressure	Fixed costs rise 15% to $737K.	$1,045K	$14K gap	A higher overhead load nearly wipes out the Month 4 cushion.
Margin pressure	Direct costs rise from 29.5% to 34.5%, cutting margin to 65.5%.	$979K	$31K cushion	Disposal, hauling, or permit spikes quickly eat the buffer.
Combined pressure	Revenue slips to $855K, margin falls to 65.5%, and fixed costs rise 15% to $737K.	$1,125K	$177K gap	A permit delay plus a cost shock can push the plan deep into loss.

What should you verify before you sign the yard lease and build the tank removal crew?

Founder checklist

Don’t commit to the lease, trucks, or extra hires until the booked-work math clears break-even. This model only looks ready if demand, margin, capacity, and cash all hold together through Month 4 and the Month 2 cash dip.

1Booked revenue$909K/mo

Verify the pipeline can hit at least $909K in monthly booked revenue before you treat the crew as covered.

2Fixed load$64.1K/mo

Add payroll, rent, insurance, licensing, services, utilities, software, and marketing, then check that this load stays fundable.

3Margin mix70.5% CM

Hold the job mix above a 70.5% contribution margin after disposal, fuel, permits, and PPE, or growth will leak cash.

4Crew capacity60/80/15 hrs

Confirm the crew can repeat the 60 removal, 80 remediation, and 15 assessment hour mix at six monthly jobs before you add another hire.

5Cash floor$547K, M2

Keep cash near the $547K minimum in Month 2, because early capex and slow collections hit before the work base is stable.

6Field readyMonth 4

Bind the $4.2K monthly environmental liability insurance, lock disposal and waste routes, and document permit timing before field work starts.