House Leveling Break Even: About $73K In Monthly Revenue

Fixed costs $17.8K/mo Overhead base

Contribution margin 66% After variable costs

Break-even revenue $26.9K/mo Monthly target

Break-even timing Month 4 Model ramp point

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed monthly costs against break-even for a house leveling and foundation repair contractor.

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and overhead. $ Lower sales Higher sales Variable expenses These rise with jobs, materials, fuel, and sales commissions. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $363,497 $527,500 revenue - $164,003 variable expenses

Margin ratio

69%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which foundation repair expenses are fixed, and which move with sales?

Cost classification

Break-even is reliable only if fixed overhead stays separate from job-driven costs. In the first operating year, listed fixed overhead is $17,750/month, while materials, field labor, commissions, and fuel absorb 34% of revenue before payroll steps.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Lease	Fixed	Include $6,500 per month in baseline overhead.	Spreading rent across jobs and hiding true monthly burn.
Liability and Workers Comp Insurance	Fixed	Include $3,200 per month before calculating job volume needed.	Treating required coverage as optional or job-by-job.
Equipment Leasing Fees	Fixed	Include $4,500 per month as capacity overhead.	Ignoring lease payments when crews are underbooked.
Raw Materials and Steel Components	Variable	Model at 14% of first-year revenue, then apply forecast rates by year.	Using gross revenue as margin before piers, steel, and materials.
Field Crew Direct Labor	Variable	Model at 12% of first-year revenue for job-level break-even.	Treating field labor like fixed overhead and overstating margin.
Sales Commissions and Referrals	Variable	Model at 5% of first-year revenue because it moves with sold work.	Forgetting commissions when estimating contribution per job.
Fuel and Vehicle Maintenance	Semi-variable	Start at 3% of first-year revenue and watch route density.	Treating fuel like flat overhead instead of job-linked usage.
Salaried Management and Office Payroll	Semi-fixed	Hold stable until staffing steps up with estimators, admin, or marketing capacity.	Adding full headcount too early or missing scale-up payroll.

How does break-even shift from a lean pipeline to a fuller one for a foundation repair contractor?

Scenario table

Here’s the quick math: this business carries a heavy fixed-cost load, so break-even moves mostly with monthly revenue. As the pipeline goes from lean to Year 1 to Year 2, the cushion widens fast.

Planning cases only; actual jobs, pricing, and labor mix can move these numbers.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean break-even case	$73K	$24.8K	$48.2K	66.0%	$0	Right on the line, so any slip hurts fast.
Year 1 base case	$191K	$64.9K	$48.2K	66.0%	$77.8K	Comfortable cushion, but payroll still sets the pace.
Year 2 fuller pipeline case	$374K	$122.6K	$54.4K	67.2%	$196.8K	Stronger coverage, even with added marketing payroll.

What breaks the break-even plan for a house leveling contractor?

Stress test

At the Year 1 run rate, the business has about $118K of monthly cushion above break-even. That cushion shrinks fast if lead flow slows or if steel, fuel, commissions, or overhead creep up.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Year 1 run rate and cost mix stay as modeled.	$73K	$118K cushion	Healthy start, but the cushion can shrink fast.
Revenue shortfall	Monthly revenue runs 25% below the Year 1 average.	$73K	$70K cushion	Slower lead flow cuts the cushion by about 40%.
Fixed cost creep	Monthly overhead rises by $1K from lease, insurance, or leasing costs.	$74K	$116K cushion	Small overhead creep lifts the sales bar right away.
Margin pressure	Variable expense rises 3 points as steel, fuel, and commissions worsen.	$76K	$114K cushion	A few margin points matter because they raise break-even.
Combined pressure	Revenue drops 25%, overhead rises $1K, and variable expense rises 3 points.	$78K	$65K cushion	This is where slow leads and higher job costs start to bite.

Is the foundation repair contractor ready to sign the lease and buy equipment?

Founder checklist

Before you sign the lease, hire payroll, or buy equipment, make sure the first-year pipeline and cost base can carry a $619K cash trough in Month 2 and still reach break-even by Month 4. If the model misses that mark, the commitment is too early.

1Cash Buffer$619K

Verify you can hold at least this much cash when equipment buys and staffing hit, because the model bottoms out in Month 2.

2Fixed Load$17.75K/mo

Make sure the $6,500 lease and the rest of the fixed load fit before adding payroll, because this business burns $17.75K a month before wages.

3Quote Margin66% CM

Check every job quote keeps about a 66% contribution margin after the 34% variable load, or overhead will outrun sales.

4Crew Mix18.5 hrs/job

Map staffing against the 40% underpinning, 35% slab jacking, and 25% crack repair mix, which averages 18.5 billable hours per job, and lock down estimating and scheduling so the crew stays billable.

5Equipment Pack$342K capex

Confirm the rig, hydraulic system, two service trucks, lasers, mini-equipment, racking, tools, and IT setup are funded before bigger bids.

6Lead Flow100 customers

Test whether a $45K Year 1 marketing budget at a $450 CAC can bring in about 100 customers, because weak lead flow will miss Month 4 break-even.