Mobile Bicycle Repair Break-Even Analysis: $86K Monthly Revenue

Break-Even Metric Cards

Fixed costs $7.2K/mo Monthly overhead base

Contribution margin 90% After variable costs

Break-even revenue $7.9K/mo Revenue needed monthly

Break-even timing Month 2 Model break-even point

Break-Even Calculator

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where this mobile bicycle repair service breaks even.

Lean Base Full

Monthly revenue Top-line sales set how much margin is left for fixed costs. $ Low sales Busy month Variable expenses These are direct costs that move with each repair, part sale, and card payment. $ Lean costs High costs

Money available to cover fixed costs $20,261 $22,350 revenue - $2,089 variable expenses

Margin ratio

91%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly costs you pay even before extra jobs come in. $ Small base Big base

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a mobile bicycle repair break-even model?

Cost classification

Break-even is only useful if fixed overhead and sales-linked costs are separated cleanly. In the first operating year, parts, supplies, fuel, and card fees reduce contribution, while monthly overhead sets the sales floor.

Expense	Cost	Break-Even Treatment	Common Mistake
Vehicle Insurance	Fixed	Include in monthly overhead at $250/month.	Don’t tie it to each repair.
Software Subscriptions	Fixed	Include in monthly overhead at $150/month.	Don’t bury it in general admin.
Digital Marketing Base	Fixed	Include in monthly overhead at $400/month.	Don’t assume ads stop when bookings slow.
Lead Mechanic / Owner	Fixed	Include $70,000 annual pay as recurring labor.	Don’t call profit owner income.
Cost of Parts Sold	Variable	Apply 8.0% of first-year revenue.	Don’t use sales price as margin.
Service Consumables	Variable	Apply 2.0% of first-year revenue for small supplies.	Don’t ignore lube, cables, and shop supplies.
Vehicle Fuel & Maintenance	Semi-variable	Apply 4.0% of first-year revenue for route usage.	Don’t understate long drive times.
Payment Processing Fees	Variable	Apply 2.5% of revenue to card-paid sales.	Don’t forget card fees.

How does break-even change from a lean route to a fuller mobile repair schedule?

Scenario table

More jobs and a stronger mix of service packages, repairs, parts, and contracts push gross margin up, so fixed costs are easier to cover. The lean case is tight, while the base and full cases build more cushion.

These are planning assumptions, not guarantees; actual break-even will move with route density, pricing, and repair mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean route	$8,600	$1,419	$7,183	83.5%	($2)	Near break-even, so any weak route density can tip it back to loss.
Base year 1 mix	$13,583	$2,241	$7,183	83.5%	$4,159	Clear cushion before other model items, with break-even risk much lower.
Full route year 2 mix	$22,350	$3,509	$9,266	84.3%	$9,575	Break-even pressure eases as volume and mix improve, even with one added mechanic.

What breaks this break-even plan if bookings slow or costs rise?

Stress test

The plan clears break-even, but the cushion is only about $4,983 a month on $13,583 of monthly revenue. If bookings slow or fuel, parts, or card fees rise, that buffer shrinks fast because fixed overhead is already about $7,183.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Monthly revenue holds at $13,583 and variable costs stay at 16.5% of sales.	$8,600	$4,983 cushion	Base case clears break-even by 58%.
Revenue shortfall	Monthly bookings and revenue run 20% below plan.	$8,600	$2,266 cushion	Low repeat bookings cut the cushion fast.
Fixed-cost pressure	Fixed overhead rises to $7,900 a month from higher insurance, marketing, and owner pay.	$9,461	$4,122 cushion	Higher overhead lifts the bar even if sales hold.
Margin pressure	Variable costs rise to 19.5% of sales from pricier parts, fuel, and card fees.	$8,923	$4,660 cushion	Underpriced parts and longer drives squeeze each job.
Combined pressure	Revenue slips 20%, fixed overhead rises to $7,900, and variable costs rise to 19.5%.	$9,814	$1,052 cushion	Weak demand plus higher costs can tip this into loss.

Can this mobile bicycle repair business reach break-even before you buy the van and hire the next mechanic?

Founder checklist

Do not commit to the van or the next hire until real bookings support the Year 1 base revenue of about $13.6K a month and the fixed monthly load. If route density, pricing, and repeat jobs cannot hold that level, break-even is still fragile.

1Demand proof$13.6K/mo

Verify booked work can match the Year 1 average monthly revenue before you commit to the service van.

2Fixed load$7.2K/mo

Check that overhead plus the lead mechanic stay covered, because that is the monthly floor the business has to clear.

3Margin mix83.5% CM

Confirm parts, consumables, fuel, and processing stay near the model so each job leaves enough gross profit.

4Route density4.0% fuel

Test whether clustered stops can keep fuel and unpaid drive time near plan, since thin routes can wipe out service profit.

5Cash reserve$829K

Hold enough cash to absorb the Month 2 low point and the $72K launch capex before you add fixed payroll or stock.

6Hiring rampMonth 13

Delay the junior mechanic until job volume justifies the added salary, and cap initial parts stock near $5K until repeat demand proves out.