Ultrasonic Testing Service Break-Even: About $91K/Month

Fixed costs $60.7K/mo Core monthly base

Contribution margin 52% After variable costs

Break-even revenue $115.8K/mo Cover the base

Break-even timing Month 18 Model break-even point

Break-even calculator

See how monthly revenue, direct costs, and fixed overhead shape break-even for this ultrasonic testing service.

Lean Base Full

Monthly revenue Revenue sets the pool that can cover direct costs and then fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with field work, travel, and processing volume. $ Low direct cost High direct cost

Money available to cover fixed costs $141,116 $189,667 revenue - $48,551 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead base that contribution margin has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which ultrasonic testing expenses are fixed, and which move with sales volume?

Cost classification

Break-even is only reliable if stable monthly overhead stays separate from job-linked spend. In this model, Month 18 break-even depends on not burying travel, repair spikes, or idle technician payroll inside harmless overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility lease and lab space	Fixed	Use $6,500 per month in fixed overhead for the relevant planning range.	Spreading rent across jobs and hiding true monthly burn.
Professional liability insurance	Fixed	Use $1,800 per month as fixed overhead from Month 1 through Month 60.	Treating insurance as job-specific when it must be paid even in slow months.
First-year core staff payroll	Fixed	Use $590,000 per year for the CEO and Principal Engineer, Level III technician, two senior field technicians, technical sales manager, and operations coordinator.	Calling underused technician payroll variable just because labor is tied to service delivery.
Consumables and couplants	Variable	Model at 8.5% of revenue in the first year, stepping down to 6.5% by the fifth year.	Using a flat dollar budget instead of linking spend to billable work.
Field travel and lodging	Variable	Model at 12.0% of revenue in the first year, declining to 10.0% by the fifth year.	Treating remote-job travel as harmless overhead instead of margin drag.
Equipment maintenance and calibration	Variable	Model at 5.5% of revenue in the first year, declining to 3.5% by the fifth year.	Ignoring repair spikes until they hit cash flow after heavy field use.
Technician hiring and vehicle additions	Semi-fixed	Add capacity in steps when volume forces more field coverage, vehicles, or lab throughput.	Assuming margins improve smoothly when the next hire or vehicle creates a step-up.

How does break-even change from lean to full capacity in ultrasonic testing?

Scenario table

Break-even moves as the mix shifts from standard ultrasonic testing to higher-value PAUT, TOFD, consulting, and emergency work. More of that work lifts the CM ratio, so fixed overhead is easier to cover and losses shrink faster.

Planning figures only; the service mix changes over time, so break-even can move with utilization, pricing, and travel load.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 testing mix	$61k	$18k	$61k	71%	-$18k	Still below break-even; overhead outruns standard work.
Base Month 18 break-even mix	$93k	$25k	$68k	73%	$0	Month 18 is the crossing point; each extra hour builds cushion.
Full-capacity Year 5 mix	$332k	$74k	$121k	78%	$138k	The mature mix gives a wide cushion above fixed overhead.

What breaks first if bookings slip or costs run hot?

Stress test

Year 1 still sits below break-even, so any booking slowdown or cost creep widens the cash gap. The main watchouts are idle certified staff, long travel, calibration downtime, and fixed overhead moving toward the $218,000 cash floor by Month 18.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue, margin, or fixed cost.	$907,000	$176,000 gap	Year 1 revenue of $731,000 still misses break-even.
Revenue shortfall	Booked revenue falls to $609,000.	$907,000	$298,000 gap	Idle certified staff and weaker inspection volume widen the cash gap.
Fixed-cost pressure	Fixed overhead rises 10% from the $644,000 annual base.	$998,000	$267,000 gap	Payroll, insurance, and facility costs push break-even above launch revenue.
Margin pressure	Variable load rises from 29% to 34% of revenue.	$976,000	$245,000 gap	Travel, calibration, and overtime take a bigger share of each billable hour.
Combined pressure	Revenue falls to $609,000 while fixed costs rise 10% and variable load rises to 34%.	$1,073,000	$464,000 gap	Cash can move toward the $218,000 minimum if jobs slip and costs spike.

Can you prove booked demand, staffing, and cash before you commit to the ultrasonic testing fleet?

Founder checklist

Don’t commit to the fleet, payroll, and outreach until the model shows enough booked work to reach the $907K break-even target. If pricing, billable hours, or cash runway miss now, the launch will spend ahead of demand.

1Booked Demand$907K target

Verify booked and likely work can climb to the $907K break-even target with the $45K Year 1 marketing budget and $2,500 CAC, or the launch spend will outrun demand.

2Pricing Mix71.0% CM

Hold the Year 1 rate card at $165 standard, $285 advanced PAUT and TOFD, $210 consulting, and $450 emergency call out, because the mix only works if contribution stays near 71.0% before payroll and rent.

3Billable Load40/30/10/8 hrs

Check that standard testing can sell 40 billable hours a month, advanced work 30, consulting 10, and emergency call outs 8, because the revenue ramp depends on those hours landing.

4Crew Plan1 LIII + 2 seniors

Verify one Level III technician and two senior field technicians can cover inspections, review work, and travel-heavy jobs without delay, or booked revenue will slip into backlog.

5Overhead Load$60.7K/mo + 12.0%

Keep jobs close enough to hold field travel and lodging near 12.0% of revenue, and remember the opening fixed load runs about $60.7K a month before variable costs.

6Cash Runway$218K / 46 mo

Verify the $218K minimum cash cushion can absorb the $340K capex build, because payback takes 46 months and Month 18 is the cash low point.