Chartered Financial Analyst and business consultant specializing in service-based and high-volume small businesses.
How many cars do you need to wash to be profitable? Enter any three variables—Monthly Fixed Costs, Avg. Price per Wash, Avg. Variable Cost per Wash, or Breakeven Cars—to solve for the fourth.
Car Wash Breakeven Calculator
Car Wash Breakeven Formula
The breakeven formula for a car wash finds the total number of cars (Q) you must wash each month for your total revenue to cover all your fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Wash Price (P):
P = (F / Q) + V
Solve for Avg. Variable Cost (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your recurring overhead. This includes the land/building rent, loan payments on the tunnel or equipment, insurance, and salaried employee wages.
- Avg. Price per Wash (P): The average price a customer pays for a single wash.
- Avg. Variable Cost per Wash (V): The costs tied directly to one wash. This includes water, soap, electricity for the equipment, and any hourly labor directly related to the wash.
- Breakeven Cars (Q): The total number of cars you must wash per month to reach $0 in profit.
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What is a Car Wash’s Breakeven Point?
A **Car Wash’s Breakeven Point** is the exact number of cars (Q) you need to service each month to cover all your business expenses. It’s the minimum sales volume required to pay for your fixed “overhead” costs (like rent and equipment) and the variable “per-wash” costs (like water and soap).
**Fixed Costs (F)** are your consistent monthly overhead, whether you wash 0 cars or 10,000. This is primarily your rent/mortgage, equipment loan payments, property taxes, insurance, and any salaried staff (like a manager).
**Variable Costs (V)** are the costs incurred *only* when a customer purchases a wash. This is a critical number to calculate. It includes the cost of water, electricity for the brushes/dryers, all soaps and chemicals, and any hourly labor paid to attendants for that wash.
The **Contribution Margin** (P – V) is the profit from a single car wash that goes toward paying your fixed costs. If you charge (P) $15 for a wash and your variable costs (V) are $3, your contribution margin is $12. This calculator finds how many $12 “profit chunks” you need to cover your total fixed costs (rent, equipment loans, etc.).
How to Calculate Car Wash Breakeven (Example)
Let’s calculate the breakeven point for an automatic car wash.
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Identify Monthly Fixed Costs (F):
Your monthly rent is $5,000. Equipment loan payment is $2,000. Insurance and utilities are $1,000. Your total (F) = $8,000.
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Identify Avg. Price per Wash (P):
You have several packages, but your average sale per car is $15.
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Identify Avg. Variable Cost per Wash (V):
For each car, you use $1 in water, $1.50 in chemicals, and $0.50 in electricity. Your total (V) = $3.00.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin: $15 (P) – $3 (V) = $12.
Next, divide the fixed costs by this margin:
Q = $8,000 / $12 = 666.67 -
Conclusion:
You must wash 667 cars (rounding up) just to cover your monthly business overhead. The 668th car, and every car after, is your personal profit.
Frequently Asked Questions (FAQ)
If you have monthly plans, you need to average them. If a $30/month member washes 3 times, their “Avg. Price per Wash” is $10. Blend this with your single-wash customers to find your true average (P).
It depends. If you have an attendant on-site for a fixed 8-hour shift regardless of car volume, their wage is a (F) Fixed Cost. If you only pay an attendant *per car* they hand-dry, that portion is a (V) Variable Cost.
This is a “mixed cost”. Your *base* utility bill (just to keep the lights on) is a Fixed Cost (F). The *extra* cost per car (the water/power to run the tunnel) is a Variable Cost (V). You must estimate this per-car cost and add it to (V).
Enter your (F) (e.g., $8,000), your (V) per car (e.g., $3), and a *target* number of cars (Q) you expect to wash (e.g., 1,000). The calculator will solve for (P), telling you the *minimum average price* (e.g., $11.00) you must charge per car to hit your goal.