Plumbing Service Break-Even Analysis: About $31K Monthly Revenue

Fixed costs $5.0K/mo Monthly overhead

Contribution margin 71% After variable costs

Break-even revenue $7.0K/mo Revenue target

Break-even timing Month 17 Model ramp point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a plumbing service.

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and overhead. $ Low sales Busy month Variable expenses These are direct costs that rise as jobs and parts use go up. $ Low direct High direct

Money available to cover fixed costs $25,000 $34,000 revenue - $9,000 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

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

Cost classification

Break-even is reliable only when monthly overhead stays separate from job-level spend. Here, fixed overhead is $5,000/month, while Year 1 variable items run 29% of revenue before labor and staffing choices.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include in the $5,000 monthly overhead base.	Tying rent to call volume.
Utilities	Fixed	Model at $400/month inside overhead.	Treating all utilities as Variable.
Insurance General & Property	Fixed	Include $300/month in overhead before break-even.	Leaving insurance out of overhead.
Vehicle Fleet Insurance	Fixed	Include $800/month as fleet overhead, separate from fuel.	Treating insurance like fuel.
CRM & Accounting Software Subscriptions	Fixed	Model at $250/month as office software overhead.	Booking it per job.
Plumbing Parts & Fixtures	Variable	Apply 15% of first-year revenue to job delivery.	Using retail markup instead of revenue share.
Vehicle Fuel & Maintenance	Variable	Apply 6% of first-year revenue to service activity.	Treating truck use as free.
Added Truck Capacity	Semi-fixed	Add only when demand proves the next capacity step.	Adding vehicles before demand is proven.

How does break-even shift from a lean, owner-led shop to a full plumbing crew?

Scenario table

Break-even moves mostly with payroll and dispatch load. Lean trims the owner salary, base adds Year 1 staff, and full only works if higher route density holds the 79.5% margin. This excludes the $127,000 startup spend and debt service.

Planning cases only; they are assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean owner-led shop	$21,700	$6,293	$15,417	71%	$0	Owner pay is the main swing factor, so this only works with tight labor control.
Year 1 staffing base case	$31,100	$9,019	$22,083	71%	$0	This is the core setup; it needs steady lead flow to hold near break-even.
Year 5 scaled field team	$66,600	$13,653	$52,917	79.5%	$0	Scale only clears break-even if route density and truck use stay high.

What breaks this plumbing break-even plan first?

Stress test

This plan sits right on break-even, so small misses matter. Fewer service calls, pricier parts, fuel spikes, or overtime can push it negative fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$31,103	$0 cushion	Base case is on the line.
Revenue shortfall	Monthly revenue drops 10% to $27,993.	$31,103	$3,110 gap	A small call drop flips profit to loss.
Fixed-cost pressure	Fixed costs rise 10% to $24,292 a month.	$34,214	$3,111 gap	Overhead growth pushes the line higher.
Margin pressure	Variable expenses rise 5 points to 34%.	$33,459	$2,356 gap	Parts, fuel, and overtime can squeeze fast.
Combined pressure	Revenue drops 10%, fixed costs rise 10%, and variable expenses hit 34%.	$36,805	$8,812 gap	Two-way pressure creates a wide break-even gap.

Can your plumbing route hit break-even before you add another van, hire, or lease?

Founder checklist

Do not lock in a bigger lease, more vans, or extra hires until weekly leads, pricing, and cash all clear the break-even line. For this plumbing model, Year 1 demand has to cover about $20.8K of monthly fixed overhead and still support the Month 17 break-even path and the Month 18 cash need of $712,000.

1Launch Mix70/30

Secure early emergency and installation bookings in a tight service radius before buying more vehicles; the Year 1 mix only works if the two vans stay productive.

2Lead Flow$150 CAC

Prove weekly lead flow can stay at or below the Year 1 customer acquisition cost of $150 before you add payroll, or break-even slips.

3Job Price$2.25K / $960

Price emergency repair at 15 billable hours times $150 and installation at 8 times $120, then check that the quoted work still has room to carry the crew.

4Cost Stack29% + $20.8K/mo

Verify supplier terms keep parts and fixtures near 15% of revenue, fuel and maintenance near 6%, and base overhead near $20.8K per month before you sign a bigger lease.

5Crew Ramp1.0→1.5 FTE

Keep staffing at the owner plus one lead tech until job volume can support the Year 2 jump to 1.5 lead-tech FTE and a 0.5 junior FTE, so payroll does not outrun bookings.

6Cash Cushion$712K

Hold the Month 18 minimum cash need of $712,000 and delay nonessential equipment if route density is still weak.