Toe Kick Lighting Break-Even: About $17K Monthly Revenue

Fixed costs $2.5K/mo Overhead base

Contribution margin 70.5% After variable cost

Break-even revenue $3.6K/mo Revenue target

Break-even timing Month 3 Launch payback

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against monthly break-even for toe kick lighting installs.

Lean Base Full

Monthly revenue Revenue is the cash in that covers variable and fixed costs. $ Lower sales Higher sales Variable expenses These direct costs rise as install volume rises. $ Lower cost Higher cost

Money available to cover fixed costs $143,154 $198,000 revenue - $54,846 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a toe-kick lighting installer?

Cost classification

Break-even is only reliable when per-job costs stay out of overhead. In the first year, materials at 18%, wiring at 8%, and fuel at 3.5% should reduce contribution margin before fixed costs are tested.

Expense	Cost	Break-Even Treatment	Common Mistake
Business Insurance and Bonding	Fixed	Carry $850 per month in fixed overhead from Month 1 through Month 60.	Spreading it across jobs and understating break-even when job count is low.
Vehicle Insurance and Registration	Fixed	Carry $450 per month as a stable operating expense within the planning range.	Combining it with fuel and making the full vehicle line variable.
Software Subscriptions	Fixed	Carry $280 per month in fixed overhead before calculating operating profit.	Dropping it from break-even because each single bill feels small.
LED Components and Materials	Variable	Model as 18% of first-year revenue, falling to 15% by the mature year.	Treating materials as overhead instead of per-job spend.
Installation Hardware and Wiring	Variable	Model as 8% of first-year revenue, falling to 6% by the mature year.	Bundling wiring into supplies and hiding true job margin.
Vehicle Fuel and Maintenance	Variable	Model as 3.5% of first-year revenue, then step down as routing improves.	Using one flat monthly fuel number even when job volume changes.
Marketing Modeled by CAC	Semi-variable	Use $180 per acquired customer in the first year and reconcile it to the $25,000 annual budget.	Counting both the full budget and CAC-driven spend without tying them together.
Installation Technician Payroll	Semi-fixed	Add capacity in steps: 0.5 FTE in the first year, then 1.0 FTE in the second year.	Treating salaried technician payroll as if it rises with every job.

How does break-even shift from lean volume to base volume and full capacity for toe kick lighting installs?

Scenario table

At the same first-year mix, lean volume loses money, base volume clears a small profit, and full capacity creates a wide cushion. Since the contribution margin stays near 70%, break-even mainly moves with job volume.

These figures use planning assumptions from the model, so actual results can move with job mix, site conditions, and scheduling.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean first-year mix	$12,705	$3,748	$11,696	70.5%	-$2,739	Still below break-even, with a monthly cash gap.
Base first-year mix	$17,787	$5,247	$11,696	70.5%	$844	Just over break-even, but the cushion is thin.
Full-capacity first-year mix	$38,115	$11,244	$11,696	70.5%	$15,175	Well above break-even, with room for slower weeks.

What pushes toe kick lighting break-even higher?

Stress test

Base break-even is $16,590 a month. A 20% revenue shortfall can turn the month into about a $1,664 loss, and a 15% jump in fixed costs or a margin squeeze pushes break-even higher fast. The model has little cushion if volume slips.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$16,590	$0 cushion	No cushion if a month runs light.
Revenue shortfall	Monthly revenue falls 20% from the 14-job base.	$16,590	$1,664 gap	A small demand miss can erase profit.
Fixed-cost pressure	Fixed costs rise 15%.	$19,078	$2,488 gap	Overhead growth pushes the target up fast.
Margin pressure	Variable expenses rise from 29.5% to 34.5% of revenue.	$17,856	$1,266 gap	Material waste above 26% or fuel above 35% of revenue hurts fast.
Combined pressure	Revenue falls 20%, fixed costs rise 15%, and variable expenses rise to 34.5% of revenue.	$20,535	$3,945 gap	That leaves very little room for another hire.

Can this toe-kick lighting business hit break-even before the truck, inventory, and hiring ramp?

Founder checklist

Before you commit to the truck, stock, and helper, make sure the first-year math can clear about 14 jobs a month. If pricing, lead flow, or install speed slips, break-even gets pushed out fast.

1Break-even jobs14/mo

Verify you can close about 14 installs a month before major spend, because that is the pace the model needs to cover operating load.

2Cost load$11.9K/mo

Check that owner pay, helper pay, and overhead stay near this monthly load, and skip showroom rent unless package volume justifies it.

3Margin mix70.5% CM

Keep LED components, hardware, and fuel tight in the truck so waste does not eat the cash that funds each install.

4Hourly rate$115-$135/hr

Hold Year 1 pricing in this band so under-cabinet, toe-kick, and full-package jobs stay aligned with the model.

5Lead flow12/mo

A $25,000 marketing budget at $180 CAC points to about 139 customers a year, so confirm that demand shows up before you count on steady installs.

6Ramp cushionMonth 7 / $810K

If demand is not steady by Month 7, delay the installation technician and protect the Month 2 cash trough before adding more fixed cost.