Lawn Mower Repair Break-Even Analysis: About $33K/Month

Fixed costs $9.7K/mo Overhead base

Contribution margin 21% After variable cost

Break-even revenue $46.2K/mo Monthly target

Break-even timing Month 9 Model breakeven

Break-even calculator

This calculator tests monthly revenue, variable costs, and fixed costs to show when the shop clears break-even.

Lean Base Full

Monthly revenue Revenue sets the margin pool that has to cover overhead each month. $ Low sales High sales Variable expenses Replacement parts, fuel, card fees, and parts commissions rise with each job. $ Low cost High cost

Money available to cover fixed costs $48,600 $66,000 revenue - $17,400 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs Shop rent, utilities, insurance, leases, and payroll base stay due each month. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which repair shop expenses stay fixed, and which move with sales volume?

Cost classification

Break-even gets reliable when fixed overhead is separated from expenses that rise with jobs. In the first year, variable items like parts, fuel, and card fees can move the Month 9 break-even point fast.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop Rent	Fixed	Use $4,500/month as overhead that must be covered before profit.	Spreading rent across jobs and hiding the monthly hurdle.
Workshop Utilities	Semi-fixed	Start with $650/month, then step it up as shop activity and equipment use grow.	Holding utilities flat after adding bays, shifts, or heavier equipment use.
Vehicle Insurance and Maintenance	Semi-fixed	Use the $850/month base, then add capacity steps as mobile work expands.	Treating all vehicle expense like fuel that moves with every job.
Replacement Parts and Components	Variable	Model at 18.0% of first-year revenue; $358k × 18.0% = about $64.4k/year.	Booking initial parts inventory as monthly profit and loss instead of separating working capital from expense timing.
Mobile Service Vehicle Fuel	Variable	Model at 3.5% of first-year revenue; $358k × 3.5% = about $12.5k/year.	Burying fuel inside fixed vehicle overhead and overstating contribution margin.
Credit Card Processing Fees	Variable	Apply 2.8% to sales in the first year because fees rise with paid repair tickets.	Leaving card fees out when most customers pay by card.
Commission on Parts Sales	Variable	Apply 3.2% to first-year sales tied to parts activity.	Treating commission as fixed payroll instead of a sales-linked charge.
Technician Wages	Semi-variable	Keep base technicians in overhead, but tie overtime or added shifts to billable-hour demand.	Treating every technician dollar as fixed even when labor flexes with workload.

How does break-even shift across lean, base, and full-service mower repair plans?

Scenario table

A leaner overhead lowers the hurdle, but mix still drives the result. The base plan misses break-even, while the full-service plan clears it with room to spare.

Planning figures only; actual results will move with repair mix, parts cost, and demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean shop-first plan	$31.4k	$8.6k	$22.7k	72.5%	$0	Only covers overhead if demand stays at the break-even line.
Base Year 1 plan	$29.8k	$8.2k	$24.2k	72.5%	-$2.6k	Still below break-even, so the shop needs more booked hours or a lighter payroll.
Full-service Year 2 plan	$66.0k	$17.4k	$36.4k	73.6%	$12.2k	Clears break-even with a cushion if mobile and tractor work stay dense.

What pushes this lawn mower repair shop past break-even?

Stress test

The plan is tight. At $24,233 of monthly overhead and a 72.5% contribution margin, break-even sits near $33,425 a month, and small hits from slower bookings, higher overhead, or weaker parts margin turn that into a gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$33,425	$0 gap	Break-even only holds if demand lands on plan.
Revenue shortfall	Revenue runs 10% below break-even.	$30,083	$2,423 gap	Slower spring bookings create an immediate cash drag.
Fixed-cost pressure	Monthly overhead rises by $2,000.	$36,184	$2,759 gap	Rent, utilities, or staffing creep moves break-even up fast.
Margin pressure	Variable expenses rise from 27.5% to 32.5% of revenue.	$35,900	$2,475 gap	Parts price jumps and rework cut the cushion quickly.
Combined pressure	Overhead rises $2,000 and variable expenses stay at 32.5%.	$38,864	$5,439 gap	Weak routing, idle tech time, and margin slip can break the model.

Can this lawn mower repair shop clear break-even before you sign the lease and add payroll?

Founder checklist

Treat the lease, van spend, and new hires as a go only after booked work can clear about $33.4K a month, the shop can carry about $24.2K in monthly overhead, and cash stays covered through Month 8, when the model bottoms at $735K. If any of those miss, slow the fixed commitments.

1Demand proof$33.4K/mo

Confirm booked monthly work can clear about $33.4K in sales, because that is the break-even line before you lock in the shop.

2Fixed load$24.2K/mo

Check the fixed monthly load at about $24.2K, since rent, utilities, insurance, vehicle costs, software, equipment leases, professional help, and office spend have to get paid even when jobs slow.

3Rate mix$75-$110/hr

Test the Year 1 rate mix at $85 for mower repair, $95 for tractor service, $110 for mobile service, $75 for maintenance plans, and $80 for small engine repair against parts, fuel, card fees, and parts commissions.

4Cash runwayMonth 8 / $735K

Keep enough cash to reach Month 8, when the model bottoms at $735K, because early setup, marketing, and payroll hit before steady work does.

5Launch spend$35K/$18K/$42K/$12K

Stage the $35K shop setup, $18K diagnostic tools, $42K van purchase, and $12K van setup only after demand is real, and confirm supplier terms before tying up the $25K initial parts inventory.

6Hire rampMonth 7+

Add the Shop Technician in Month 7, the Mobile Service Technician and Part-Time Shop Assistant in Month 13, the Customer Service Rep in Month 25, and later hires only when work orders keep them busy enough.