Slate Roof Restoration Break Even: About $52K Monthly Revenue

Fixed costs $9.7K/mo Base overhead

Contribution margin 70% After variable work

Break-even revenue $13.9K/mo Monthly target

Break-even timing Month 5 Model ramp point

Break-even calculator

Test whether monthly revenue covers direct costs and the fixed monthly base for a slate roof restoration service.

Lean Base Full

Monthly revenue Revenue is the cash coming in before direct job costs and overhead. $ Low revenue High revenue Variable expenses Direct costs rise with work volume, like materials, logistics, insurance, and fuel. $ Low costs High costs

Money available to cover fixed costs $218,000 $297,000 revenue - $79,000 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs These monthly costs stay in place even when jobs slow. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with sales in a slate roof restoration break-even model?

Cost classification

For this contractor, break-even is useful only if job-linked items move with revenue and yard, vehicle, and admin overhead stay fixed. This operating view excludes taxes, debt service, depreciation, and owner draws.

Expense	Cost	Break-Even Treatment	Common Mistake
Reclaimed Slate and Copper Materials	Variable	Use 18.0% of first-year revenue.	Treating salvaged slate as free.
Disposal and Salvage Logistics	Variable	Use 4.0% of first-year revenue.	Hiding haul-off fees inside materials.
Project Specific Insurance Premiums	Variable	Use 5.0% of revenue.	Modeling project coverage as flat overhead.
Equipment Fuel and Maintenance	Variable	Use 3.0% of revenue.	Ignoring longer drive times and job duration.
Storage Yard and Workshop Rent	Fixed	Use $4,500 per month.	Spreading rent across jobs as if it disappears.
General Liability Insurance	Fixed	Use $1,200 per month.	Mixing base coverage with project-specific premiums.
Vehicle Lease Payments	Fixed	Use $2,800 per month.	Treating lease payments like fuel.
Salaried Crew and Project Roles	Semi-fixed	Use $307,000 first-year payroll, about $25,583 per month.	Assuming payroll rises smoothly with each job.

How does break-even change from a lean repair month to a full restoration pipeline?

Scenario table

Lean months sit right on the edge, Year 1 average months give a modest cushion, and fuller Year 2 months improve profit but also raise the payroll floor. Scaffold overruns or late starts can wipe out that cushion fast.

Planning assumptions only; scaffold overruns, start delays, and job mix can move profit quickly.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean repair-heavy month	$52K	$16K	$35K	69.2%	$1K	One delay can push this month under break-even.
Balanced Year 1 month	$94K	$33K	$35K	64.9%	$26K	This clears break-even with a modest cushion.
Full Year 2 month	$200K	$66K	$52K	67.0%	$82K	Profit is stronger, but the payroll floor is higher.

What breaks the break-even plan for historic slate roof restoration?

Stress test

Year 1 looks workable, but the buffer is not wide. With $1.127M revenue, about $668K left after variable costs, and $365K of fixed costs, break-even lands near $616K; delays, overtime, and higher slate sourcing costs are the pressure points.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$616K	$511K cushion	Healthy buffer, but rework can still eat it.
Revenue shortfall	Year 1 revenue falls 20% to about $902K.	$616K	$286K cushion	Sales softness cuts the safety net fast.
Fixed-cost increase	Fixed overhead rises 15% to about $420K a year.	$708K	$419K cushion	Overhead creep pushes break-even up.
Margin pressure	Variable expense load rises 5 points, cutting contribution margin to about 54.3%.	$672K	$455K cushion	Higher slate and logistics costs reduce room for error.
Combined pressure	Revenue falls 20%, fixed costs rise 15%, and margin drops 5 points.	$773K	$129K cushion	A slow start plus overruns leaves only a thin buffer.

Can you cover break-even before you lock in the yard, truck, and crew?

Founder checklist

Start only if signed or high-probability work can cover the $522K monthly break-even run rate. Year 1 payroll is about $25.6K a month before the yard, truck, and inventory, so the opening mix has to carry real volume.

1Booked Work$522K/mo

Verify your pipeline can cover the break-even revenue level before you commit to larger jobs and fixed assets.

2Fixed Burn$35.3K/mo

Keep the $4.5K yard, $2.8K truck, and other fixed costs in view, because monthly burn is already heavy before material spend.

3Margin Floor70% CM

Check that direct project costs stay around 30%, which leaves about 70% contribution margin (money left after direct job costs), because price cuts hit break-even fast.

4Capacity RampYear 2/4

Only add the Year 2 and Year 4 hires after the slate and copper supply line is steady, because capacity without materials still leaves jobs late.

5Cash Reserve$712K M2

Hold the $712K minimum cash need through Month 2 so the $65K truck, $25K scaffolding, $40K slate inventory, and early payroll do not squeeze the launch.

6Launch CAC$15K / $850

Keep Year 1 marketing near $15K unless customer acquisition cost (CAC) stays near $850, or lead spend will outrun the job pipeline.