Screen Enclosure Break-Even: About $63k In Monthly Revenue

Fixed costs $5.95K/mo Monthly overhead

Contribution margin 71% After variable costs

Break-even revenue $8.4K/mo Revenue target

Break-even timing Month 3 Launch ramp

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a screen enclosure installation contractor.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed overhead. $ Lower sales Higher sales Variable expenses These move with each job, like materials, permits, fuel, and project insurance. $ Lower costs Higher costs

Money available to cover fixed costs $186,671 $262,917 revenue - $76,246 variable expenses

Margin ratio

71%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover before profit starts. $ Smaller overhead Larger overhead

Break-even chart Revenue Total costs

Which screen enclosure expenses are fixed, and which move with sales?

Cost classification

Break-even only works if each expense follows its real driver. If you treat materials, permits, fuel, or field labor as fixed, the model will understate revenue needed once job count rises.

Expense	Cost	Break-Even Treatment	Common Mistake
Storage Warehouse Rent	Fixed	Include $3,500 per month in fixed overhead for the relevant planning range.	Spreading rent across jobs and hiding the true monthly sales floor.
Liability Insurance	Fixed	Include $850 per month before calculating contribution margin.	Leaving base insurance out because it is not tied to one job.
Raw Materials and Hardware	Variable	Model as 18% of revenue in the first year, declining to 16% by the fifth year.	Treating aluminum, screens, fasteners, and hardware as fixed inventory spend.
Permits and Site Surveys	Variable	Model as 4% of revenue in the first year, declining to 2% by the fifth year.	Using one flat permit budget even when job count rises.
Project Specific Insurance Premiums	Variable	Model as 2% of revenue in the first year, declining to 1.2% by the fifth year.	Rolling job-level coverage into general insurance and overstating margin.
Fuel and Vehicle Maintenance	Semi-variable	Use 5% of revenue in the first year, then adjust with routing, mileage, and crew load.	Calling all vehicle spend fixed because the trucks already exist.
Telecommunications	Semi-variable	Start with the $350 monthly base, then add usage as crew phones, tablets, or plans expand.	Ignoring added field communication spend when installer headcount grows.
Skilled Installer Payroll	Semi-fixed	Add labor in crew-sized steps; the model starts with 3.0 FTE at $55,000 per FTE in the first year.	Treating field labor as fixed even though capacity rises with job volume.

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

Scenario table

Fixed costs stay high, so break-even moves mostly with contribution dollars from each month’s job mix. Lean months sit close to break-even, while a fuller pipeline gives more cushion before tax, debt service, and capex.

Planning assumptions only; actual results can move with job mix, pricing, and crew productivity.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch pipeline	$631k	$183k	$448k	71.0%	$0	Near operating break-even; a small slip turns negative.
Base first-year plan	$2.629m	$762k	$448k	71.0%	$1.419m	Solid cushion for first-year planning, but volume still matters.
Full year-two schedule	$4.894m	$1.336m	$520k	72.7%	$3.038m	Strong cushion; overhead is well covered if the pipeline holds.

What breaks the break-even plan for a screen enclosure installer?

Stress test

Base Year 1 stays well above break-even, so the real risk is cost creep, not the starting revenue line. Permit delays, rework, fuel spikes, aluminum price pressure, overtime, and insurance jumps are the main things that can squeeze cash.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$631k	$1,420k cushion	Base case leaves a wide cushion.
Revenue shortfall	Year 1 revenue falls 10% to about $2,366k.	$631k	$1,232k cushion	Demand softens, but the plan still clears break-even.
Fixed-cost pressure	Fixed costs rise 10% from higher overhead.	$694k	$1,375k cushion	Overhead creep eats cushion faster than revenue growth.
Margin pressure	Variable expenses rise from 29% to 34%.	$679k	$1,285k cushion	Materials, fuel, and overtime pressure the margin.
Combined pressure	Revenue lands 20% below break-even, variable expenses rise to 34%, and fixed costs rise 10%.	$747k	$160k gap	Launch-month slippage can turn into a cash gap fast.

What must you verify before you sign the warehouse and hire the first crew?

Founder checklist

Test the move against the model’s Month 3 breakeven and Month 2 cash floor before you add fixed overhead. If pipeline, margin, staffing, and cash do not line up, slow the build and keep commitments light.

1Booked Pipeline$631K/mo

Confirm signed and late-stage work can cover the monthly break-even revenue target before the fixed crew and truck spend hits.

2Fixed Load$41.0K/mo

Verify rent, insurance, software, utilities, telecom, memberships, and Year 1 payroll stay near this monthly burden so the business can reach breakeven.

3Crew Ramp6.5 FTE

Make sure the Year 1 plan of 1 general manager, 1 lead design consultant, 1 project manager, 3 skilled installers, and 0.5 administrative assistant can handle the booked jobs.

4Cash Buffer$788K, Month 2

Keep at least this much cash on hand so the $231K capex buildout and early overhead do not squeeze the launch before breakeven.

5Unit Margin71% CM

Check that raw materials, permits, fuel, and project insurance stay near 29% of revenue so contribution margin holds around 71% before payroll and rent.

6Launch Demand~100 customers

Test whether $45K of Year 1 marketing at a $450 CAC can bring in about 100 customers, or the pipeline will dry up after launch.