Kegerator Installation Break-Even: About $35K Monthly Revenue

Fixed costs $23.6K/mo Monthly overhead base

Contribution margin 73% After variable costs

Break-even revenue $32.4K/mo Monthly target

Break-even timing Month 9 Ramp point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against the break-even point for a kegerator installation service.

Lean Base Full

Monthly revenue Higher revenue gives more room to cover fixed costs. $ Slow month Busy month Variable expenses Use direct costs that rise with each install or service call. $ Low cost High cost

Money available to cover fixed costs $22,143 $30,333 revenue - $8,190 variable expenses

Margin ratio

73%

Covers fixed costs

$3,957 short

Fixed monthly costs This is the monthly cost base profit must cover. $ Lean setup Large setup

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with sales in a kegerator installation service?

Cost classification

Break-even is only useful if job-level costs stay out of monthly overhead. Here, materials, chemicals, fuel, and commissions move with work volume, while rent, insurance, and salaried payroll set the monthly hurdle.

Expense	Cost	Break-Even Treatment	Common Mistake
Service technician salary	Fixed	Include salaried technician payroll in monthly overhead.	Don’t treat salaried payroll as job-only labor.
Vehicle fuel and maintenance	Variable	Model as a job-driven expense that rises with route miles.	Don’t ignore travel time and service-area density.
Draft system components	Variable	Use 15% of first-year revenue for components.	Don’t bury parts kits inside fixed overhead.
Cleaning supplies and chemicals	Variable	Use 3% of first-year revenue for service supplies.	Don’t assume maintenance jobs have no material load.
Liability and fleet insurance	Fixed	Include $1,500 per month in overhead.	Don’t spread insurance only across completed jobs.
Warehouse and office rent	Fixed	Include $4,500 per month in overhead.	Don’t lower rent when monthly jobs dip.
Marketing budget	Semi-fixed	Use the first-year budget of $25,000 as planned capacity spend.	Don’t model all marketing as pay-per-job spend.
Sales commissions	Variable	Apply 5% of first-year revenue as volume-linked selling expense.	Don’t include commissions in fixed payroll.

How does break-even change across lean, base, and full operating scale for a kegerator installation service?

Scenario table

The lean case is still short of fixed load, the base case clears break-even by a little, and the full case builds a wider cushion. Higher revenue and a stronger contribution margin matter more than the extra staff.

Planning assumptions only; actual results will move with job mix, pricing, and dispatch efficiency.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$30,333	$8,190	$25,716	73.0%	-$3,573	Still below break-even, so cash stays tight.
Base Year 2 scale	$61,833	$15,951	$39,883	74.2%	$5,999	Clears break-even with a small monthly cushion.
Full Year 5 scale	$140,667	$30,519	$61,967	78.3%	$48,181	Healthy cushion; fixed load is covered with room to absorb swings.

What pushes this kegerator installation service past break-even?

Stress test

Year 1 is already tight: $30,333 of monthly revenue trails the $35,227 break-even point by $4,894. If overhead moves to the Year 2 load, break-even jumps to $54,634, so slow leads, discounting, or hiring ahead of booked work can break the plan.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$35,227	$0 gap	Break-even only works if booked work lands on time.
Revenue shortfall	Monthly revenue holds at the Year 1 average of $30,333.	$35,227	$4,894 gap	A modest miss leaves the month underwater.
Fixed-cost increase	Monthly fixed overhead rises to the Year 2 load of $39,883.	$54,634	$24,301 gap	Added staff and overhead lift the bar fast.
Margin pressure	Variable costs stay at 27% of revenue.	$35,227	$4,894 gap	Parts, fuel, chemicals, and commissions keep the cushion thin.
Combined pressure	Monthly revenue stays at $30,333 and fixed overhead rises to $39,883.	$54,634	$24,301 gap	Low sales plus higher overhead is the red flag.

Can this kegerator installation service cover fixed overhead before you sign a lease, hire more staff, or add another van?

Founder checklist

Not yet on paper. Year 1 revenue is $364K, but EBITDA is -$72K, so prove at least $35.2K in monthly demand and about 29 blended jobs a month before adding overhead.

1Demand floor$35.2K/mo

Verify this monthly demand before scaling, and keep the mix mostly commercial because Year 1 assumes 60% commercial system installs.

2Fixed load$7.8K/mo

Keep rent and insurance in check, because warehouse and office rent is $4,500 a month and liability and fleet insurance is $1,500 a month before wages and ads.

3Margin check73% CM

Secure suppliers for draft system components and cleaning supplies; here’s the quick math: 18% COGS plus 9% variable spend leaves about 73% contribution margin before fixed costs.

4Crew load15 hrs

Document install SOPs and check coverage, because commercial work is priced on 15 billable hours at $125 an hour in Year 1, so callbacks or overtime will hit break-even fast.

5Cash cushion$727K

Hold enough working cash to survive the trough, because minimum cash lands at $727K in Month 28 and a smaller cushion can force bad cuts.

6Launch CAC$500 CAC

Keep acquisition tight against the $25,000 Year 1 marketing budget; if CAC climbs above $500, the path to Month 9 breakeven gets much harder.