Paint Protection Film Installation Break-Even: $47K Monthly Risk

Fixed costs $9.95K/mo Lease-led overhead

Contribution margin 73% After variable costs

Break-even revenue $13.6K/mo Monthly target

Break-even timing Month 3 Launch ramp

Break-even calculator

Test whether monthly revenue covers variable costs and the fixed shop-and-payroll base.

Lean Base Full

Monthly revenue Revenue sets how much margin is available to cover fixed costs. $ Lower sales Higher sales Variable expenses These are direct costs tied to each job, like film, consumables, and licensing. $ Lean costs Heavy costs

Money available to cover fixed costs $461,516 $617,000 revenue - $155,484 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin has to cover. $ Lower fixed Higher fixed

Break-even chart Revenue Total costs

Which paint protection film expenses are fixed, and which move with sales?

Cost classification

Break-even works only if revenue-linked items stay below gross margin and monthly overhead is fully loaded. In the first operating year, materials alone take 18% of revenue, while the workshop lease adds $6,500 every month.

Expense	Cost	Break-Even Treatment	Common Mistake
Premium Film Material Stock	Variable	Model at 18% of revenue in the first year.	Treating bulk buys as fixed forever.
Installation Consumables and Prep Fluids	Variable	Model at 4% of revenue in the first year.	Ignoring prep waste on each job.
Pattern Database Licensing Fees	Variable	Model at 3% of revenue in the first year.	Burying usage fees inside software overhead.
Warranty Reserve Fund	Variable	Model at 2% of revenue for rework exposure.	Excluding rework risk from margin math.
Climate Controlled Workshop Lease	Fixed	Include the full $6,500 monthly lease before break-even.	Spreading rent only across booked days.
Utilities and HVAC Maintenance	Semi-fixed	Carry the $1,200 monthly baseline across the planning range.	Assuming it falls with slow volume.
Technician Salaries	Semi-fixed	Include planned salaries that create install capacity before every bay is full.	Matching labor only to completed jobs.
Advertising	Semi-variable	Use the first-year $45,000 budget and $150 customer acquisition cost.	Stopping spend before the pipeline fills.

How does break-even change from a lean launch to Year 1 and Year 5?

Scenario table

The lean case sits on the edge of break-even, while the Year 1 and Year 5 cases add more cushion as revenue rises faster than fixed shop and payroll costs. The real watch item is utilization, because idle hours eat margin fast.

These are planning assumptions built from the model, so actual results will move with close rates, install mix, and technician utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch threshold	$47K	$13K	$34K	73%	$0	Right on the edge; one weak month can flip it negative.
Year 1 base case	$269K	$78K	$31K	71%	$160K	Healthy cushion, but utilization still needs to stay tight.
Year 5 full case	$923K	$235K	$49K	75%	$639K	Strong cushion, with shop time and staffing as the main limits.

What breaks the break-even plan for a paint protection film shop?

Stress test

Year 1 average monthly revenue of about $269,000 sits well above the roughly $47,000 break-even line. The risk is a drop in booked work, early hiring, or warranty and rework costs that narrow the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$47,000	$222,000 cushion	73% contribution margin leaves a wide base-case buffer.
Revenue shortfall	Monthly revenue falls 20% from the Year 1 average.	$47,000	$168,000 cushion	Booked installs below 27 per month would tighten the cushion fast.
Fixed-cost increase	Add one full-time shop assistant in the opening year.	$51,300	$218,000 cushion	Hiring before bay use supports it raises the break-even floor.
Margin pressure	Variable costs rise from 27% to 30% of revenue as waste and warranty claims increase.	$49,000	$220,000 cushion	Warranty claims above 2% of revenue start to eat the margin.
Combined pressure	Revenue falls 20%, one shop assistant is added, and variable costs rise to 30% of revenue.	$53,500	$162,000 cushion	CAC above $150 plus early hiring can tip the shop toward breakeven risk.

Can this shop prove enough installs before it signs the lease and buys the first film batch?

Founder checklist

Don’t sign the climate-controlled lease or buy the first film batch until you can show 27 monthly installs at a $1,793 weighted average ticket. That is the level that has to cover the $9.95K fixed load, the first technician ramp, and the Month 2 cash trough.

1Demand Proof27 installs/mo

Confirm the market can deliver at least 27 installs a month at a $1,793 blended job price before you commit to the lease, because that is the volume needed to make break-even believable.

2Fixed Load$9.95K/mo

The $6,500 lease plus utilities, insurance, software, cleaning, and accounting run $9.95K a month, so the install count has to clear this base before you add more overhead.

3Gross Margin73% CM

Premium film, consumables, licensing, and the warranty reserve take 27% in Year 1, so you keep about 73 cents of each revenue dollar before payroll and rent.

4Staff Ramp$127K base pay

The senior lead at $75K and the junior technician at $52K create a $127K payroll base, so check that the 4-, 8-, and 24-hour jobs fit this crew before you hire faster.

5Film Stock$15K stock

Buy the opening inventory only after supplier fill and booking volume look real, because the $15K first stock purchase ties up cash before revenue turns on.

6Cash Guardrail$814K / $150 CAC

Protect the Month 2 cash trough and keep Year 1 CAC near $150, because either miss can push the Month 3 break-even date out and force you to delay optional spend.