Refrigerated Trailer Unit Repair Break-Even: $24K/Month

Fixed costs $18.0K/mo Overhead base

Contribution margin 85% After variable costs

Break-even revenue $21.2K/mo Monthly target

Break-even timing Month 20 Forecast break

Break-even calculator

Test whether monthly revenue can cover the direct costs that rise with work and the fixed monthly overhead.

Lean Base Full

Monthly revenue Revenue is the pool that pays variable costs and fixed overhead. $ Early launch Mature run Variable expenses Parts and vehicle fuel rise as monthly work volume rises. $ Light load Heavy load

Money available to cover fixed costs $56,663 $65,583 revenue - $8,920 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin must cover. $ Lean shop Full team

Break-even chart Revenue Total costs

Which refrigerated trailer unit repair expenses are fixed, variable, or step up with capacity?

Cost classification

Break-even gets reliable when fixed overhead, job-linked costs, and staffing steps are kept separate. If you price labor without travel, parts usage, and unpaid diagnostic time, Month 20 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Office and Shop Rent	Fixed	$3,500/month must be covered before profit.	Burying rent inside service-call pricing.
Vehicle Insurance	Fixed	$1,200/month stays due even when calls slow.	Treating insurance like a per-job charge.
Technology and Software	Fixed	$850/month supports dispatch, records, and billing.	Leaving software out of the monthly nut.
Owner/Lead Technician	Semi-fixed	$85,000/year is capacity that stays in place.	Pricing jobs as if owner labor is free.
Senior Technician	Semi-fixed	$65,000/year, with 0.5 FTE in the first year.	Adding headcount before enough billable hours exist.
Parts and Components Inventory	Variable	12% of revenue in the first year.	Counting billed labor but missing parts usage.
Vehicle Fuel and Maintenance	Variable	3% of revenue in the first year.	Ignoring travel time and route density.
Training and Certifications	Fixed	$500/month supports technician readiness.	Cutting training, then losing billable capacity.

How does break-even change across lean, base, and full repair setups?

Scenario table

Contribution margin (CM) is what’s left after variable costs. Lean stays tight, base sits close to break-even, and full has the best cushion only if the larger crew stays busy.

Planning assumptions only; results will move with job mix, labor use, and parts costs.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo mobile start	$15.6k	$2.3k	$20.1k	85.0%	-$6.8k	Needs about 190 billable hours a month, so this start stays tight.
Base small crew case	$38.7k	$5.5k	$32.8k	85.7%	$0.3k	Near break-even, so a small dip in dispatch or parts spend can turn profit negative.
Full expanded mobile and shop case	$106.8k	$13.8k	$62.8k	87.1%	$30.2k	Has a wider cushion, but only if the larger crew stays highly utilized.

What breaks the break-even plan for a refrigerated trailer repair shop?

Stress test

The plan is most exposed to slower demand, higher overhead, and margin loss on parts and travel. A 15% sales miss, a 10% fixed-cost jump, or a margin slip to 82% all push break-even higher fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$237k	$50k gap	Year 1 revenue stays below break-even.
Revenue shortfall	Revenue falls 15% below break-even to about $201k.	$237k	$36k gap	A small demand miss leaves a large hole.
Fixed-cost pressure	Fixed costs rise 10% to about $221k.	$260k	$73k gap	Extra overhead pushes the line up fast.
Margin pressure	Variable costs rise from 15% to 18%, cutting margin to 82%.	$245k	$58k gap	Unpaid diagnostics and extra miles hurt margin.
Combined pressure	Revenue drops to $201k, margin falls to 82%, and fixed costs rise 10%.	$270k	$83k gap	Underpriced after-hours work and parts gaps compound fast.

Can this trailer repair workload cover the monthly nut before you sign the lease, hire, or buy the fleet?

Founder checklist

Don’t lock in rent, vehicles, or hires until the work mix can cover about $18.0K a month in fixed cost and still track to Month 20 break-even. If early bookings stay thin, the Month 28 cash low point gets painful fast.

1Rate Card$125/$95/$185

Test emergency, preventative, and after-hours pricing before you commit, because the Year 1 rates must hold enough fleet demand to justify the $85,000 vehicle spend and the $35,000 parts build.

2Monthly Nut$18.0K/mo

Verify rent, insurance, software, and overhead stay inside the fixed base, since office and shop rent is $3,500 a month and the full load drives the break-even point.

3Margin Base85% CM

Protect the 85% contribution margin by holding parts at 12% of sales and fuel and maintenance at 3%, because every lost point makes break-even slip.

4Staff RampMonth 7-16

Only add the senior tech, junior tech, and dispatcher after early work supports them, since those hires start in Month 7, Month 13, and Month 16 and can erase the first profit.

5Cash Cushion$550K

Keep the full reserve in place, because the model’s minimum cash lands at $550,000 and the business does not pay back until Month 52.

6Launch CAC$350 CAC

Check that a $25,000 Year 1 marketing budget can still buy customers near the $350 acquisition cost, so the opening pipeline is real before you promise 24/7 coverage.