Metal Stud Framing Contractor Break-Even Analysis: $143K/Month

Fixed costs $28.5K Monthly overhead

Contribution margin 71% After variable costs

Break-even revenue $40.1K Sales needed monthly

Break-even timing Month 10 Model break-even

Break-even calculator

This calculator shows whether monthly framing revenue covers direct job costs and fixed overhead.

Lean Base Full

Monthly revenue Revenue pays the fixed cost base after direct project costs. $ Low sales High sales Variable expenses Use direct job costs that rise with billing, like steel, freight, fuel, and PPE. $ Low direct cost High direct cost

Money available to cover fixed costs $294,458 $401,167 revenue - $106,709 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with job volume for a metal stud framing contractor?

Cost classification

Wrong classification breaks the Month 10 break-even: fixed items must stay in overhead, while steel, freight, fuel, and safety supplies must reduce job contribution. Keep crew payroll separate because it moves in hiring steps.

Expense	Cost	Break-Even Treatment	Common Mistake
Main Office and Yard Lease	Fixed	Carry $12,500 per month in overhead from Month 1 through Month 60.	Signing lease space before signed backlog supports it.
General Liability and Workers Comp Insurance	Fixed	Carry $6,800 per month in overhead, not as a per-job charge.	Treating insurance as job-only and understating base overhead.
BIM and Project Management Software	Fixed	Carry $2,200 per month in overhead for license commitments.	Ignoring software commitments when estimating break-even volume.
Raw Steel Material and Fasteners	Variable	Model at 18.0% of first-year revenue before gross profit.	Burying material waste inside margin instead of tracking it.
Project Specific Logistics and Freight	Variable	Model at 4.0% of first-year revenue and assign it to jobs.	Underpricing delivery, staging, and site access time.
Equipment Fuel and Maintenance	Semi-variable	Start at 5.0% of first-year revenue, then review by travel-heavy job mix.	Missing fuel and maintenance spikes on distant projects.
Site Safety and PPE Supplies	Variable	Model at 2.0% of first-year revenue and charge supplies to projects.	Leaving safety supplies in overhead and overstating job profit.
Foreman and Lead Framer Payroll	Semi-fixed	Treat first-year crew capacity as about $430,000 per year, added in staffing steps.	Hiring ahead of signed work and lifting break-even too soon.

How does break-even change from a lean start to a full metal stud framing crew?

Scenario table

Break-even shifts with crew load, billable hours, and direct job spend. Lean volume stays below break-even, the base case clears it, and the full case widens the cushion as fixed payroll is spread over more revenue.

Planning figures only; actual results will move with job mix, staffing, and timing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$114.3K	$33.2K	$101.8K	71%	-$20.7K	Still below break-even, so launch risk stays high.
Base backlog case	$244.7K	$69.0K	$130.2K	72.1%	$46.5K	Above break-even with a modest cushion.
Full crew case	$401.2K	$107.2K	$177.3K	73.4%	$117.1K	Well above break-even if utilization stays strong.

What breaks the break-even plan if jobs slip or costs creep up?

Stress test

At the base plan, revenue is about $1,434K against a 71% contribution margin and $1.018M fixed costs, so profit is basically zero. A 10% revenue miss, a 10% overhead bump, or margin slip to 68.1% quickly turns that into a loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,434K	$0 cushion	Any slip in sales or crew output turns profit negative.
Revenue shortfall	Revenue falls 10% to $1,291K.	$1,434K	$143K gap	A small sales miss becomes a six-figure loss.
Fixed-cost increase	Fixed costs rise 10% to $1,120K.	$1,577K	$143K gap	Overhead creep forces more revenue just to hold even.
Margin pressure	Variable expenses rise to 31.9%.	$1,495K	$61K gap	Small job inefficiency wipes out the cushion fast.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise to 31.9%.	$1,645K	$354K gap	Lower sales plus higher costs create a fast six-figure loss.

What should a metal stud framing founder verify before locking in the yard lease and crew build?

Founder checklist

Use the model only if signed work points to about $143K in monthly revenue and the cash trough stays manageable. Keep the yard, insurance, trucks, and crews flexible until the Month 10 break-even path is real and the Month 14 low cash point is covered.

1Revenue path$143K/mo

Verify backlog and pipeline can support this monthly revenue before you lock the full overhead stack.

2Fixed load$98.1K/mo

Don't lock the $12.5K monthly yard lease until signed work covers the full overhead stack, because Year 1 fixed costs and wages run about $98.1K a month before materials.

3Margin mix71% CM

Hold raw steel and fasteners near 18% of revenue and freight near 4%, because those lines, plus fuel and PPE, drive the contribution margin that makes the plan work.

4Crew match2 foremen / 4 framers

Match foremen and lead framers to signed jobs, because Year 1 already assumes this field crew before the company is at scale.

5Reserve cushionMonth 14 / $46K

Keep cash long enough to reach the Month 14 low point, because minimum cash only falls to $46K even though break-even arrives in Month 10.

6Launch pipeline$45K / $4.5K CAC

Have general liability, workers comp, and fleet coverage active before field labor starts, and make sure the Year 1 marketing budget can still support leads at about $4.5K CAC.