General Construction Break-Even: $82K Monthly Revenue Target

Fixed costs $9.9K Monthly overhead base

Contribution margin 71% After variable costs

Break-even revenue $13.9K Monthly target sales

Break-even timing Month 7 Model break point

Break-even calculator

Use this to test how monthly billing, direct project costs, and overhead set your break-even point.

Lean Base Full

Monthly revenue Monthly project billing drives the cash left for overhead. $ Low sales High sales Variable expenses These are the direct costs that rise with each job. $ Low direct cost High direct cost

Money available to cover fixed costs $188,914 $253,917 revenue - $65,003 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead and payroll the margin has to cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which construction expenses are fixed, variable, semi-variable, or semi-fixed for break-even math?

Cost classification

Break-even only works if job-linked charges stay out of overhead. In the first year, recurring fixed overhead starts at $9,900/month before wages, while revenue-linked charges can take 29% of sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Operational Office Rent	Fixed	Use $4,500/month in fixed overhead for the monthly break-even base.	Allocating rent to each job and understating true overhead.
Commercial Liability Insurance	Fixed	Use $2,800/month as overhead unless the policy changes with project volume.	Treating insurance as a job cost just because projects create risk.
Professional Licensing and Bonding	Fixed	Use $600/month in the fixed overhead stack across Month 1 to Month 60.	Dropping required compliance spend from break-even because it is not tied to one job.
Building Material Sourcing Fees	Variable	Apply 12% of first-year revenue as a revenue-linked charge before contribution margin.	Putting sourcing fees in overhead and overstating margin per project.
Specialized Equipment Rentals	Variable	Apply 6% of first-year revenue because the model ties rentals to sales volume.	Counting every rental as fixed even when usage rises with jobs.
Project Portal SaaS Fees	Variable	Apply 3% of first-year revenue in the break-even contribution calculation.	Calling it fixed software and missing the usage-linked platform charge.
Referral Partner Commissions	Variable	Apply 8% of first-year revenue only to referred work included in sales.	Budgeting commissions as marketing overhead instead of sales-linked expense.
Lead Carpenters, Site Supervisors, and Project Managers	Semi-fixed	Keep current payroll in fixed overhead, then add FTE in steps when capacity rises.	Spreading salaries as one flat percentage across every project.

How does break-even change from lean to base to full-capacity construction work?

Scenario table

Break-even improves as revenue scales, but fixed payroll and overhead rise too. The base case is the cleanest balance here because margin stays strong while overhead absorption gets better than in the lean start.

Planning assumptions only; actual job mix, pricing, and labor use will move these results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean year 1 model	$104.5K	$30.3K	$65.3K	71%	$8.9K	Thin cushion; small drops can erase profit.
Base year 2 model	$194.1K	$53.1K	$75.1K	72.7%	$66.0K	Healthy cushion; revenue covers fixed overhead.
Full-capacity year 5 model	$411.3K	$90.5K	$150.4K	78%	$170.4K	Strong cushion; overhead absorbs cleanly at scale.

What breaks the break-even plan for a construction company?

Stress test

This plan breaks first when revenue slips or jobs stall. A 10% revenue drop still leaves about $85K monthly cushion, but a 20% drop, 5-point margin squeeze, and 10% higher fixed costs flip the plan to about an $89K monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$821K	$159K cushion	Healthy, but still project heavy.
Revenue shortfall	Monthly revenue falls 10% to about $941K.	$821K	$85K cushion	A small sales miss cuts room fast.
Fixed-cost increase	Fixed costs rise 10% to about $641K a month.	$903K	$101K cushion	Overhead creep eats cash first.
Margin pressure	Variable expenses rise 5 points and cut margin to 66%.	$883K	$107K cushion	Fee pressure trims the safety net.
Combined pressure	Revenue falls 20%, variable costs rise 5 points, and fixed costs rise 10%.	$971K	$89K gap	This pushes the plan into monthly cash loss.

What should you verify before you buy the trucks and lock in the crew?

Founder checklist

Before you lock in trucks, staff, and overhead, make sure the work pipeline and cash path still hold. With $45K in year-one marketing, a $2,500 CAC, and a $648K cash low in Month 6, break-even only works if pricing, crew coverage, and launch timing all line up.

1Demand Proof18 projects

Test whether $45K in first-year marketing at a $2,500 CAC can produce at least 18 qualified projects, or the backlog will stay too thin.

2Cost Load$54.6K/mo

Cover the monthly load before adding extra trucks or hires; this includes about $44.7K in base payroll and $9.9K in fixed overhead.

3Margin Check71% CM

Confirm supplier quotes still fit the 12% first-year sourcing fee, 6% equipment rentals, and 8% referral commissions so contribution stays near 71%.

4Crew Bench85 hrs/customer

Build the subcontractor bench before selling larger jobs, because Year 1 assumes 85 billable hours per active customer and weak coverage will push work out.

5Cash Cushion$648K, Month 6

Keep enough cash to reach the modeled low point in Month 6, since the business needs that reserve before job cash flow can catch up.

6Launch Setup$187K

Put licensing, bonding, and field insurance in place before bidding, and fund the $187K truck, tool, trailer, and software buildout so launch does not stall.