Landscaping Break-Even Analysis: About $91K Monthly Revenue

Fixed costs $14.3K/mo Base overhead

Contribution margin 53% After job costs

Break-even revenue $27.0K/mo Monthly target

Break-even timing Month 10 Model payoff point

Break-even calculator

Test whether monthly revenue can cover direct job costs and the fixed overhead this landscaping service carries.

Lean Base Full

Monthly revenue Revenue sets the cash pool that covers direct job costs and overhead. $ Low sales High sales Variable expenses Use direct costs that move with the size of the work, like materials, fuel, and subcontractors. $ Low costs High costs

Money available to cover fixed costs $81,669 $144,799 revenue - $63,130 variable expenses

Margin ratio

56%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business must cover before profit starts. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which landscaping expenses stay fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead stays fixed and job-linked costs move with revenue. In this model, misclassifying crews, materials, fuel, rentals, or subcontractors can make Month 10 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Office and warehouse rent at $4,500 per month	Fixed	Include in monthly overhead before calculating required contribution margin.	Spreading rent across jobs and hiding the true monthly hurdle.
Business insurance at $1,200 per month	Fixed	Keep as recurring overhead for the full planning range.	Treating insurance as job-driven when it does not rise with each sale.
Software subscriptions at $850 per month	Fixed	Include as fixed monthly operating expense in break-even revenue.	Ignoring small fixed tools that add up every month.
Plants, soil, and materials at 18% of revenue in the first year	Variable	Deduct directly from revenue when calculating contribution margin.	Budgeting materials as overhead instead of tying them to job volume.
Hardscape materials at 8% of revenue in the first year	Variable	Model as job-linked expense for installation work.	Using one average margin and missing heavy-material projects.
Subcontractor services at 8% of revenue in the first year	Variable	Deduct as work scales, especially for specialized or overflow jobs.	Calling subcontractor overages overhead when they move with booked work.
Equipment fuel and maintenance at 4% of revenue in the first year	Semi-variable	Model with usage-linked expense that rises as crews run more routes and equipment hours.	Treating repairs and fuel as flat even when job count climbs.
Field crew payroll for installation leads and maintenance technicians	Semi-fixed	Add payroll in staffing blocks as capacity rises, not penny-for-penny with revenue.	Treating all labor as fixed overhead when crews are added with volume.

How does break-even change from a lean route model to a staffed full-service landscaping operation?

Scenario table

Break-even jumps as the business adds payroll, overhead, and more project capacity. Lean route work stays lighter, but full-service design and install needs much more monthly sales to cover the fixed base.

Planning assumptions only; actual break-even will move with route density, mix, and job efficiency.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean route maintenance	$270K	$127K	$143K	53%	$0	Lean route work breaks even with a smaller sales base, so density matters most.
Base staffed maintenance and install	$907K	$426K	$481K	53%	$0	Year 1 staffing pushes the bar up fast, but recurring work can still support it.
Full-service scale operation	$1,561K	$628K	$933K	59.8%	$0	Higher design and install volume can work, but only if crews stay utilized.

What breaks the break-even plan if sales slow or costs rise?

Stress test

This plan is tight. A 10% sales miss leaves about a $48K gap, and a 5-point margin hit or 10% fixed-cost creep pushes break-even near $1.0M; combined pressure leaves about a $137K gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$907K	$0 gap	Plan sits at break-even with no cushion.
Revenue shortfall	Revenue comes in 10% below plan.	$907K	$48K gap	A modest sales miss turns profit negative fast.
Fixed-cost increase	Fixed overhead rises 10%.	$997K	$90K gap	More rent, admin, or support cost raises the bar.
Margin pressure	Contribution margin falls 5 points to 48%.	$1.00M	$94K gap	Fuel, materials, and subcontractor overruns squeeze margin.
Combined pressure	Revenue falls 10%, margin drops to 48%, and fixed costs rise 10%.	$1.10M	$137K gap	Weak renewals and cost creep create a real cash squeeze.

Is this landscaping service ready to commit to trucks, trailers, mowers, and crew payroll?

Founder checklist

Only if signed maintenance work, ZIP-level density, and pre-sold projects support the load. Break-even lands in Month 10, but launch capex is $229K and minimum cash dips to $472K in Month 17, so the commitment has to survive the cash trough, not just the first jobs.

1Signed WorkMonth 10

Secure recurring maintenance contracts before you scale payroll, because the break-even case only works if booked work is in hand first.

2Fixed Load$14.3K/mo

Keep monthly fixed costs near $14.3K before you add more staff, because rent, insurance, software, utilities, and base marketing set the floor.

3CAC Match$320

Compare the $320 Year 1 CAC to the $149, $249, and $449 plans, because lower-priced customers need faster payback or upsell to stay healthy.

4ZIP DensityZIP route test

Test route density by ZIP code before buying more vehicles, because dead drive time cuts crew hours and pushes break-even out.

5Margin Check47% cost

Verify plants, soil, hardscape, fuel, and subcontractors stay inside the 47% Year 1 variable cost load, because that is what funds overhead and profit.

6Cash Cushion$229K + $472K

Hold cash for the $229K launch capex and the $472K minimum cash trough in Month 17, or delay nonessential hiring until the model proves it can carry the load.