Tennis Court Resurfacing Break-Even Point: About $54K/Month

Fixed costs $9.7K/mo Core overhead

Contribution margin 71% After variable spend

Break-even revenue $13.7K/mo Monthly target

Break-even timing Month 6 Launch ramp

Break-even calculator

Test how monthly revenue, direct costs, and fixed overhead compare with break-even.

Lean Base Full

Monthly revenue Revenue is the cash you bring in before direct costs and overhead. $ Low sales High sales Variable expenses These are direct costs that rise with each job. $ Light costs Heavy costs

Money available to cover fixed costs $159,683 $217,583 revenue - $57,900 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which tennis court resurfacing expenses are fixed, and which move with sales?

Cost classification

Use fixed monthly overhead for the break-even base, then subtract job-level materials, fuel, and commissions from revenue to get contribution margin. Treating coatings, crack fillers, or fuel as overhead hides the real margin per job.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and Office Rent ($4,500/month)	Fixed	Include in the monthly overhead base before calculating required sales.	Spreading rent across jobs and blurring true job margin.
General Liability Insurance ($1,200/month)	Fixed	Keep as a recurring monthly fixed expense from Month 1.	Reducing it when sales fall, even though coverage continues.
Equipment Lease Payments ($2,800/month)	Fixed	Count as fixed overhead during the lease period.	Treating lease payments like usage-based equipment costs.
Acrylic Coatings and Polymer Resins (14% of revenue in first year)	Variable	Deduct from revenue as job-level cost of goods sold.	Calling it overhead and overstating contribution margin.
Consumable Supplies and Crack Fillers (6% of revenue in first year)	Variable	Model as a direct job cost that rises with sales volume.	Ignoring small supplies because each item feels minor.
Sales Commissions (4% of revenue)	Variable	Subtract from each sales dollar before break-even math.	Putting commissions below the break-even line.
Fuel and Vehicle Maintenance (5% of revenue in first year)	Semi-variable	Link to route load and job volume; separate any known base fleet spend.	Treating all vehicle spend as fixed monthly overhead.
Salaried Crew and Management	Semi-fixed	Model payroll in staffing steps as full-time equivalents increase.	Assuming payroll moves smoothly with every added job.

How does break-even move from a lean launch to a full operating setup?

Scenario table

As revenue grows, variable costs fall from 29.0% to 24.2%, so contribution margin improves. But fixed payroll and overhead also rise, so break-even depends on keeping added crews busy.

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

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$68k	$19.7k	$38.3k	71.0%	$10k	Thin cushion; idle time or pricing slips can erase profit.
Base scaling case	$217.6k	$57.9k	$75.7k	73.4%	$84k	Healthy cushion, but added payroll keeps break-even sensitive to utilization.
Full operating case	$372.9k	$90.3k	$111.6k	75.8%	$171k	Best cushion; higher crew load is offset by better utilization and lower material share.

What pushes this tennis court resurfacing plan off break-even?

Stress test

The base plan clears break-even, but the cushion can shrink fast if bookings slow or crews sit idle. Weather delays, rework, low booking density, coating waste, and underused crews are the main pressure points.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$647k	$169k cushion	The base case stays above break-even.
Revenue shortfall	Revenue falls 10% in Year 1.	$647k	$87k cushion	Slower booking flow still leaves room.
Fixed-cost pressure	Monthly fixed coverage rises by $5k.	$731k	$85k cushion	Overhead growth cuts the safety buffer.
Margin pressure	Variable expenses rise from 29% to 34%.	$695k	$121k cushion	Waste and rework eat contribution fast.
Combined pressure	Revenue falls 10%, variable expenses rise to 34%, and fixed coverage rises by $5k.	$787k	$53k gap	That mix pushes the plan below break-even.

What should you verify before signing trucks, storage, and payroll for a tennis court resurfacing service?

Founder checklist

Before you sign trucks, storage, or payroll, prove booked work can carry about $54K in monthly break-even revenue. The model only works if demand, mix, crew load, and cash all hold before Month 2 spending peaks.

1Booked Work$54K/mo

Verify signed jobs can fill the month to break-even, or the rest of the buildout just adds fixed cost.

2Fixed Burn$33.4K/mo

Verify rent, insurance, and core payroll can be covered before revenue ramps, because the warehouse alone is $4,500 a month.

3Margin Mix71% CM

Verify the mix of resurfacing, repair, maintenance, and conversions keeps contribution margin near the model after coatings, supplies, fuel, and commissions.

4Crew Ramp5 FTE

Verify the crew plan before you lock payroll, because the base team is $85K for the general manager, $65K for the lead technician, two $42K crew roles, and a $50K sales rep.

5Cash Cushion$781K

Verify funding covers the Month 2 cash trough, because about $111.7K of capex lands across the truck, striping, cleaning, grinding, storage, office, and mixing gear before break-even.

6Launch Demand33 customers

Verify the $15K marketing budget and $450 CAC can really buy about 33 customers, and that enough of them want the four-service mix to keep crews busy.