Wood Stove Maintenance Break-Even: $248K Monthly Revenue

Fixed costs $16.9K Payroll plus overhead

Contribution margin 72% After variable costs

Break-even revenue $23.4K Monthly target

Break-even timing Month 5 Forecast break-even

Break-even calculator

See how monthly revenue, variable expenses, and fixed costs drive the break-even point for a wood stove maintenance service.

Lean Base Full

Monthly revenue Revenue has to cover direct costs first, then the fixed monthly bill. $ Slow month Busy month Variable expenses These are the costs that move with each job, like supplies, fuel, and fees. $ Lean costs High costs

Money available to cover fixed costs $36,840 $51,167 revenue - $14,327 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base the margin must pay for. $ Small team Larger team

Break-even chart Revenue Total costs

Which wood stove maintenance expenses are fixed, and which move with sales?

Cost classification

Break-even works only when overhead is split from job-driven spending. If fuel, supplies, and referral fees are treated as fixed, the model will overstate margin and make Month 5 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Equipment storage facility	Fixed	Use $2,200/month as monthly overhead before calculating required gross profit.	Spreading it across jobs and hiding true base overhead.
General liability insurance	Fixed	Use $450/month as stable overhead in the break-even base.	Treating insurance as a per-job charge when it does not rise with each booking.
Owner and lead technician payroll	Fixed	Use $85,000/year as recurring payroll overhead for the first operating year.	Leaving owner pay out of break-even and overstating cash profit.
Service materials and supplies	Variable	Apply 12% of revenue in the first year, then deduct it before contribution margin.	Treating supplies as overhead instead of a job-linked expense.
Vehicle fuel and maintenance	Variable	Apply 8% of revenue in the first year because routes and service calls drive usage.	Putting fuel into fixed overhead and missing margin pressure from long routes.
Payment processing fees	Variable	Apply 3% of revenue to each paid transaction before break-even contribution.	Ignoring card fees because each charge looks small.
Referral commission fees	Variable	Apply 5% of revenue in the first year for referred jobs.	Counting referral work as full-margin revenue.
Certified field technician staffing	Semi-fixed	Model $55,000/year per full-time technician, then step up when route capacity is full.	Smoothing technician payroll as a percent of sales instead of adding capacity in blocks.

How does break-even change between lean, base, and full-capacity months?

Scenario table

Break-even moves with monthly volume and mix. Lean months miss fixed costs, base months barely clear them, and full-capacity months build a much wider cushion.

Planning assumptions only; actual results can move with mix and routing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$17,280	$4,838	$17,867	72.0%	$-5,425	Fixed costs outrun contribution, so break-even is not reached.
Base operating mix	$24,960	$6,989	$17,867	72.0%	$104	Just above break-even, so small dips can flip profit.
Full-capacity route mix	$51,167	$14,327	$17,867	72.0%	$18,973	Strong cushion; the main risk is keeping routes full.

What pushes this wood stove maintenance service below break-even?

Stress test

Here’s the quick math: the base plan has only a $145 cushion over break-even. A modest booking dip or higher overhead can erase it, especially if fall demand softens, drive times run long, rework rises, insurance climbs, or referral-paid work grows.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; revenue stays at $24,960 and variable expenses stay at 28%.	$24,815	$145 cushion	The plan clears break-even, but only by a thin margin.
Revenue shortfall	Bookings fall 15%, pulling monthly revenue down to $21,216.	$24,815	$2,591 gap	Weak fall booking pace can erase the cushion fast.
Fixed-cost rise	Fixed overhead rises 10% to $19,653 a month.	$27,296	$1,682 gap	Higher overhead pushes break-even above the current run rate.
Margin squeeze	Variable expenses rise from 28% to 33%.	$26,667	$1,144 gap	Fuel, materials, or referral fees can cut the margin quickly.
Combined stress	Bookings fall 15%, fixed overhead rises 10%, and variable expenses rise to 33%.	$29,334	$5,439 gap	A slow month plus cost inflation creates a real loss.

What should the founder verify before buying the second van and adding fixed spend?

Founder checklist

Before you buy the second van or add more staff, prove the route can reach at least 65 monthly jobs at a ticket near $384. If the mix slips, the Month 5 break-even and Month 12 payback will move out fast.

1Demand floor$384 ticket

Verify the service area can produce at least 65 monthly jobs at an average ticket near $384 before you add fixed spend, or the Month 5 break-even slips.

2Margin check72% CM

Keep supplies near 12% of revenue, fuel and maintenance near 8%, and payment plus referral fees at 8% so contribution stays about 72% before wages.

3Core overhead$3.45K/mo

Hold non-payroll overhead at $3,450 a month and get the $450 insurance in place before launch, so the fixed floor stays predictable.

4Launch demand$1.0K/mo

Set Year 1 marketing at $1,000 a month and track CAC near $45, because lead cost tells you how fast you can reach break-even volume.

5Staffing ramp2.5 FTE

Confirm one owner, one field technician, and half-time office support can cover booked work before you add the $45,000 second van.

6Cash cushion$800K M2

Keep at least $800,000 of cash through Month 2, since that is the model’s tightest point before payback lands in Month 12.