Small Engine Repair Break-Even Revenue: $248K Per Month

Fixed costs $4.5K/mo Base overhead

Contribution margin 75% After variable costs

Break-even revenue $6.0K/mo Revenue target

Break-even timing Month 9 Model payback point

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a small engine repair shop.

Lean Base Full

Monthly revenue Revenue is the top line that has to cover direct costs and then fixed overhead. $ Slow month Busy month Variable expenses These are direct costs that rise as repair work and parts sales grow. $ Light direct costs Heavy direct costs

Money available to cover fixed costs $36,484 $47,691 revenue - $11,207 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which small engine repair expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead stays separate from job-level costs. Here, rent and insurance set the monthly floor, while parts, consumables, vehicle use, and card fees move with repair volume.

Expense	Cost	Break-Even Treatment	Common Mistake
Shop Rent ($3,000/month)	Fixed	Count as baseline monthly overhead from Month 1 through Month 60.	Spreading rent per job and hiding the true monthly sales target.
Business Insurance ($400/month)	Fixed	Include in the fixed cost base before calculating required contribution margin.	Treating insurance as optional when it still runs in slow months.
Utilities ($300/month)	Semi-variable	Model the base charge as overhead, then watch usage as shop hours rise.	Assuming utilities stay flat when equipment use and seasonal workload increase.
Replacement Parts Inventory (15% of revenue in first year)	Variable	Deduct at the job level before measuring gross contribution.	Treating parts like overhead instead of a direct repair expense.
Specialized Consumables (3% of revenue in first year)	Variable	Apply as a percentage of repair revenue because usage follows job count.	Ignoring small supplies that quietly reduce margin on each ticket.
Vehicle Operating Costs (5% of revenue in first year)	Variable	Link to mobile service volume and route density, not rent-style overhead.	Using one flat monthly estimate even when dispatch miles change.
Payment Processing Fees (2% of revenue in first year)	Variable	Subtract from each paid invoice because fees rise with sales collected.	Calculating break-even on gross sales before card fees.
Owner/Lead Technician and Technician 1	Semi-fixed	Keep as labor capacity until workload requires added technicians or seasonal staffing.	Calling all labor variable and understating the monthly payroll hurdle.

How does break-even move from a lean setup to a full staffed repair shop?

Scenario table

Lower overhead cuts the break-even bar fast, but every added tech pushes it back up. In the base shop, you need about $20.7k a month; the full build needs much more once staffing expands.

Planning cases only; actual profit or loss depends on real demand, service mix, and cost control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean mobile setup	$16.7k	$4.2k	$12.5k	75%	$0	Lower rent cuts the revenue bar, but capacity stays tight.
Base staffed shop	$20.7k	$5.2k	$15.5k	75%	$0	This is the launch test and the cleanest read on viability.
Full multi-tech expansion	$35.8k	$7.0k	$28.8k	80.5%	$0	By the mature year, added staff lift break-even to about $429k a year.

What breaks the break-even plan for a small engine repair shop?

Stress test

This shop breaks fast if bookings slip or parts and payroll run ahead of revenue. The base plan sits at about $248,000 in monthly break-even revenue, so a 10% revenue miss or cost creep quickly turns into a real cash gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$248,000	$0 gap	The base case only works if work stays on pace.
Revenue shortfall	Monthly revenue lands 10% below break-even.	$248,000	$19,000 gap	A slow spring ramp can push the shop off plan fast.
Fixed-cost pressure	Fixed costs rise 10% from the base plan.	$273,000	$25,000 gap	Extra payroll before booked work widens the cash need.
Margin pressure	Variable costs move from 25% to 30% of revenue.	$266,000	$18,000 gap	Parts inflation lifts the break-even line even if sales hold.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable costs rise to 30%.	$292,000	$48,000 gap	Off-season mower and generator demand plus cost creep can create a steep monthly hole.

Can you prove this shop can break even before you sign the lease and buy the first van?

Founder checklist

Before you commit, prove the schedule can fill, the pricing can hold, and the cash trough stays covered. In this model, Month 9 is the stress point, not opening day.

1Demand Path105 jobs/mo

Use the $12K Year 1 marketing budget at $60 CAC to see if you can book enough diagnostic work to reach this monthly volume.

2Supplier Access$8K stock

Lock parts suppliers before the initial inventory buy so repairs do not stall on missing parts or slow replenishment.

3Fixed Load$18.6K/mo

Check that rent, insurance, utilities, software, admin, fleet insurance, professional fees, and Year 1 marketing stay near this monthly burden before variable costs.

4Price Mix75% CM

At $95 per hour for diagnostic work and $85 for maintenance, Year 1 variable costs take about 25% of sales, so gross contribution stays near 75% before wages.

5Capacity Ramp3 techs

Verify one van, the Month 19 second-tech step, and the Month 37 third-tech step can handle turnaround time, warranty work, and the promised service radius.

6Cash Runway$755K min

Hold the modeled cash floor because minimum cash bottoms at $755K in Month 9, right as Service Van 2 and the fixed payroll load hit.