Range Hood Installation Break-Even: About $366K Monthly Revenue

Fixed costs $8.6K/mo Base overhead

Contribution margin 68% After variable costs

Break-even revenue $12.7K/mo Revenue target

Break-even timing Month 5 Launch ramp

Break-even calculator

Compare monthly revenue, direct costs, and fixed costs to see when this service breaks even.

Lean Base Full

Monthly revenue Revenue sets the pool that has to cover direct and fixed costs. $ Low revenue High revenue Variable expenses Use direct costs that move with each install, like materials, subcontractors, fuel, and referral fees. $ Low costs High costs

Money available to cover fixed costs $52,983 $77,917 revenue - $24,934 variable expenses

Margin ratio

68%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base contribution margin has to cover. $ Low fixed High fixed

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with sales in a range hood installation service?

Cost classification

Break-even gets reliable only when job-linked expenses move with revenue and overhead stays fixed. In the first year, 18.0% materials, 8.0% electrical subcontractors, and $12,250 monthly installer payroll drive the Month 5 break-even math.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent and utilities	Fixed	Use $3,200 as monthly overhead from Month 1 to Month 60.	Tying rent to each installation job.
Business insurance	Fixed	Use $1,850 as monthly overhead across the planning range.	Treating insurance like a per-install charge.
Materials and equipment costs	Variable	Model as 18.0% of first-year revenue, then adjust by forecast year.	Burying direct job materials in overhead.
Subcontractor electrical work	Variable	Model as 8.0% of first-year revenue and update with job mix.	Ignoring electrical work on complex installs.
Fuel and vehicle operating costs	Variable	Model as 3.5% of first-year revenue for job travel and usage.	Treating drive time and truck use as free.
Commission to referral partners	Variable	Model as 2.5% of first-year revenue tied to referred sales.	Counting gross referred leads as profit.
Salaried installer payroll	Semi-fixed	Use $12,250 monthly in Year 1 before adding technician capacity.	Hiring ahead of supported installation volume.
Marketing budget	Semi-fixed	Use $48,000 in Year 1, with CAC tracked separately at $320.	Confusing planned spend with per-customer CAC.

How does break-even shift from a lean launch to a staffed crew?

Scenario table

As monthly revenue and staffing rise, fixed costs move up fast, so the break-even line shifts with mix and overhead. The lean case sits near zero profit, the Year 1 base case has a small cushion, and the Year 2 full case has the most room.

Planning cases only; actual break-even will move with job mix, pricing, and crew utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean owner-led launch	$37k	$12k	$25k	68%	$0	At break-even, there’s little cushion if jobs slip.
Base Year 1 run rate	$78k	$31k	$21k	61%	$26k	Year 1 covers overhead and leaves a modest cushion.
Full Year 2 crew build	$152k	$55k	$32k	64%	$65k	Scale gives the widest cushion, but payroll must stay tight.

What breaks the break-even plan for this range hood installation service?

Stress test

Base plan clears break-even by about $413k, but fewer installs, higher labor rates, fuel pressure, callback costs, or slow lead conversion can cut that cushion fast. The combined pressure case is the tightest one to watch.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue, fixed costs, or margin.	$366k	$413k cushion	Base plan has room, but install volume still needs to hold.
Revenue shortfall	Revenue falls 20% from the base plan.	$366k	$257k cushion	Slower lead conversion trims the cushion, but break-even holds.
Fixed-cost pressure	Fixed overhead rises 10% from the base plan.	$402k	$377k cushion	More rent, insurance, or admin spend pushes break-even up.
Margin pressure	Variable expenses rise to 37.0% of revenue.	$395k	$384k cushion	Higher labor, fuel, or callback costs weaken the margin.
Combined pressure	Revenue falls 20%, fixed costs rise 10%, and margin drops to 63.0%.	$434k	$189k cushion	Fewer installs plus cost pressure leaves little room for error.

What should you verify before locking in the lease, fleet, and first hires?

Founder checklist

Don't lock in lease, fleet, or hires until the pipeline can support about 40 jobs a month. The model only reaches Month 5 breakeven if the Year 1 mix really prices near $920 per job and the Month 2 cash floor stays intact.

1Booked Jobs40 jobs/mo

At a roughly $920 Year 1 ticket, 40 jobs a month brings about $36.8k in monthly revenue, so verify demand before you sign the lease.

2Overhead Load$20.9K/mo

Office rent, insurance, fleet maintenance, software, licenses, supplies, and legal and accounting run about $8.6k a month, and owner plus senior technician payroll adds $12.25k.

3Margin Check68% CM

Year 1 variable costs are 32% of revenue: 18% materials and equipment, 8% subcontractor electrical work, 3.5% fuel, and 2.5% referral commissions.

4Reserve Floor$680K

The model's minimum cash hits Month 2 at $680k, so keep that cushion before you buy the $35k parts stock, $25k tools, $6k safety gear, and $127k of vehicles.

5Crew RampMonth 13

Hold the junior technician and administrative assistant until booked work can support the added payroll, because the core crew is just the owner plus one senior technician in Year 1.

6Launch Pipeline$48K / $320 CAC

Use the Year 1 marketing budget only if the funnel can hold CAC near $320, which buys about 150 customers, and make sure estimating, insurance, and permit steps are ready before you promise install dates.