Mobile Tire Repair And Replacement Break-Even: $327K/Month

Fixed costs $5.15K Monthly overhead base

Contribution margin 70.5% After variable costs

Break-even revenue $7.3K Monthly target sales

Break-even timing Month 19 Model break-even point

Break-even calculator

Use this to see if monthly revenue clears direct tire, fuel, and fee costs and still covers fixed overhead.

Lean Base Full

Monthly revenue Higher revenue gives more room to cover fixed costs and overhead. $ Slow month Busy month Variable expenses These are direct costs like tire parts, fuel, supplies, and payment fees. $ Light costs Heavy costs

Money available to cover fixed costs $34,051 $48,300 revenue - $14,249 variable expenses

Margin ratio

70%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which mobile tire service expenses are fixed, and which move with sales?

Cost classification

Break-even gets unreliable when monthly overhead is mixed with service-call spending. Keep fixed bills separate from revenue-linked expenses so Month 19 break-even is based on real operating behavior, not blended averages.

Expense	Cost	Break-Even Treatment	Common Mistake
Vehicle fleet insurance	Fixed	Use $1,800 per month as baseline overhead from Month 1 through Month 60.	Spreading it across each job and hiding the true monthly nut.
Office and storage rent	Fixed	Use $1,200 per month in fixed overhead for the break-even floor.	Treating rent like it falls when service volume is slow.
Wholesale tire and parts	Variable	Apply 18.0% of revenue in the first year, declining to 14.0% by the fifth year.	Treating tire inventory as free cash once purchased.
Service supplies	Variable	Apply 4.0% of revenue in the first year for valve stems, weights, patches, and similar items.	Leaving small shop supplies out because each item feels minor.
Vehicle fuel and maintenance per service	Variable	Apply 5.0% of revenue in the first year because route mileage rises with booked jobs.	Budgeting fuel as flat while adding more mobile appointments.
Payment processing and software usage fees	Variable	Apply 2.5% of revenue in the first year, then reduce to 2.0% by the fifth year.	Counting only card fees and missing usage-linked software charges.
Customer acquisition ad spend	Semi-variable	Model the $15,000 first-year marketing budget against $50 customer acquisition cost to test job volume.	Calling marketing fixed when lead spend rises to fill open route capacity.
Technician, dispatcher, and operations payroll additions	Semi-fixed	Add payroll in steps as staffing expands, including operations and dispatch roles starting after the first year.	Assuming labor scales smoothly instead of jumping when a new hire starts.

How does break-even shift from a lean one-van setup to a full multi-tech operation?

Scenario table

As payroll and service capacity rise, break-even revenue climbs fast even when the margin improves. The lean setup is closest to the line, while the full build needs much more monthly sales to stay above it.

Planning assumptions only; actual break-even will move with job mix, labor load, and demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean one-van setup	$327K	$96K	$231K	70.5%	$0	Closest to break-even, so small drops in demand matter.
Base steady territory	$462K	$129K	$333K	72.0%	$0	This is the working target, but payroll already raises the bar.
Full multi-tech operation	$697K	$183K	$514K	73.7%	$0	Higher margin helps, but fixed labor keeps the threshold high.

What breaks the break-even plan for a mobile tire service?

Stress test

Year 1 break-even sits near $327K of revenue, so there isn't much room for slower calls or deeper discounts. No cushion means more stops in each area, tight parts control, and disciplined hiring all matter early.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$327K	$0 cushion	Break-even leaves no buffer.
Revenue shortfall	Revenue falls 10% to $294K.	$327K	$23K gap	A modest sales miss opens a real hole.
Fixed-cost pressure	Fixed overhead rises by $2K per month.	$356K	$29K gap	Hiring or rent increases need more revenue.
Margin pressure	Variable expense ratio rises from 29.5% to 34.5%.	$352K	$25K gap	Fuel, parts, or fee creep can bite fast.
Combined pressure	Revenue falls 10%, fixed overhead rises $2K monthly, and margin slips to 65.5%.	$383K	$56K gap	Slow calls, discounts, and early hires stack up fast.

Can you prove this mobile tire service can clear break-even before you buy the next van?

Founder checklist

Before you add a van or another tech, prove the model can hold about 275 jobs a month, keep Year 1 variable costs near 29.5%, and still carry the cash gap to Month 30. If any one of those slips, break-even moves out fast.

1Demand Proof275 jobs/mo

Verify you can book about 275 jobs a month before another $60K van, because that is the level the model needs before scale stops draining cash.

2Invoice Size$119 AOV

Check that the average invoice holds near $119 or higher; if tickets slip, the same drive time and labor buy less revenue.

3Contribution70.5% CM

Keep Year 1 variable expenses near 29.5% of sales, so contribution margin stays around 70.5% and each job covers more fixed cost.

4Staffing RampMonth 13+

Hold dispatcher and operations hires until call volume can carry the payroll that starts in Month 13; otherwise staffing outruns demand.

5Cash Runway$561K min

Plan for the $561K minimum cash trough in Month 30, because Month 19 break-even still leaves a long cash gap before the model turns safe.

6Supply Lock$30K inventory

Secure tire sourcing and fund the $30K opening inventory before promising same-day replacement, or service speed and trust will slip fast.