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Self-Storage Break-Even: $496K Monthly Revenue Target


You’re buying existing US self-storage assets, so the first question is simple: can monthly revenue cover operating overhead before the cash drag gets worse? This page focuses on operating break-even over a 60-month model, using $45,875 in first-year fixed monthly costs and a 925% contribution margin It excludes valuation, lender underwriting, tax advice, and one-time acquisition costs unless they affect operating break-even


Fixed costs $107.3K/mo Month 45 run-rate
Contribution margin 94.4% After variable fees
Break-even revenue $113.6K/mo Monthly target
Break-even timing Month 45 Zero point

Break-even calculator

Use this calculator to test how monthly revenue, variable expenses, and fixed costs affect break-even for a self-storage acquisition.

Money available to cover fixed costs $93,300 $100,000 revenue - $6,700 variable expenses
Margin ratio
93%
Covers fixed costs
Yes
Break-even chart Revenue Total costs
Plan Break-even $0 $0

Which self-storage acquisition expenses are fixed, and which move with revenue?

Cost classification

Break-even is modeled at Month 45, so misclassifying recurring expenses can make the revenue target look too low. Separate true overhead from revenue-linked fees and step-up costs before calling the portfolio stable.

Expense Cost Break-Even Treatment Common Mistake
Corporate insurance and facility coverage Semi-fixed Include corporate insurance at $1,500/month, then add facility coverage as each active site enters the operating base. Ignoring renewal jumps and new-site coverage.
Payroll Semi-fixed Model CEO, acquisition, asset, admin, and analyst wages by full-time equivalent as the portfolio scales. Spreading new hires across too little revenue.
Third-party property management fees Variable Apply 5.0% of revenue in Year 1, falling to 3.5% by Year 5 as operating scale improves. Treating management fees as fixed overhead.
Marketing and tenant acquisition Variable Use 2.5% of revenue in Year 1, falling to 1.5% by Year 5 as occupancy and local awareness build. Cutting spend before occupancy stabilizes.
Utilities and office supplies Semi-variable Start with the $750/month office amount, then separate usage-driven facility utilities as occupied units grow. Assuming every dollar moves with occupancy.
Repairs and maintenance Semi-variable Track a baseline reserve plus usage-driven work for gates, doors, roofs, paving, and tenant turnover. Excluding gate, door, roof, and paving work.
Software subscriptions and gate access Fixed Include software subscriptions at $2,500/month, with access-control tools kept in overhead unless priced per tenant. Missing migration and access-control costs.
Site rent for leased facilities Fixed Add $27,000/month when both rented assets are active, based on $12,000 plus $15,000 monthly rent. Leaving leased locations out of overhead.

How do lean, base, and full scenarios change break-even for a self-storage acquisition?

Scenario table

Break-even moves with occupancy, rent per unit, and fee drag. Year 1 support costs leave a $45,875 monthly fixed base, and later payroll plus $27,000 of leased-site rent can push the revenue bar higher.

Planning cases only: actual results will move with occupancy, delinquency, concessions, and site-level costs.
Scenario Monthly Revenue Variable Costs Fixed Costs CM Ratio Operating Profit Break-Even Signal
Lean opening case $40,000 $3,000 $45,875 92.5% -$8,875 Still in loss, so occupancy needs more lift.
Base break-even case $49,600 $3,720 $45,875 92.5% $0 Right at break-even, so underwriting is clean but tight.
Full recovered case $60,000 $3,000 $45,875 95.0% $11,125 Creates cushion, with each extra dollar mostly dropping through.

What pressures the break-even plan for this self-storage acquisition?

Stress test

Year 1 is tight before it turns cash positive. A 75% variable load, $45,875 of monthly corporate fixed costs before leased-site rent, and a -$3.865 million cash trough in Month 44 leave little room before break-even in Month 45.

Stress Case Changed Assumption Break-Even Revenue Revenue Gap Risk Signal
Current plan No change. $49,600 $0 cushion Month 45 is the first break-even point.
Revenue shortfall Monthly rental and ancillary revenue run 15% below plan. $49,600 $7,440 gap An occupancy miss or rate cut quickly breaks the target.
Fixed-cost increase Corporate fixed costs rise 10% above the Year 1 base. $54,560 $4,960 gap Overhead inflation pushes break-even above plan.
Margin pressure Variable load rises from 75% to 80%. $62,000 $12,400 gap Management fees and marketing take more of each dollar.
Combined pressure Corporate fixed costs rise 10% and variable load rises from 75% to 80%. $68,200 $18,600 gap Cash burn widens before the Month 45 break-even point.

What should the founder verify before signing the self-storage acquisition and build plan?

Founder checklist

Before you sign, tie the rent roll to bank deposits, lock the Year 1 cost load at $45,875 per month, and prove the model can fund $1.3 million of construction plus the $27,000 monthly lease rent on rented sites. Hold cash through Month 45, because the trough reaches about -$3.865 million.

1Rent RollDeposit match

Compare the rent roll with bank deposits and check occupied units, average rent, concessions, and delinquency before closing, because this is the base that has to support break-even.

2Variable Margin92.5% CM

Year 1 variable costs total 7.5% from management fees and tenant acquisition spend, so contribution margin (CM) is 92.5% before fixed costs.

3Fixed Load$45,875/mo

Add the listed overhead and salaries and Year 1 fixed cost lands at $45,875 per month, so the deal has to carry that run rate without leaning on optimistic occupancy.

4System Go-LiveBefore close

Test software migration and payment processing before takeover, because broken billing or collections can drain cash faster than a slow lease-up.

5Staffing Ramp2.5 FTE

The opening team runs at 2.5 full-time equivalents in Year 1 before the asset manager starts in Month 13, so confirm the bench can handle acquisitions and site oversight.

6Cash Reserve$1.3M

Set aside the $1.3 million construction budget and hold working capital through Month 45; if rented sites are active, add $27,000 per month in lease rent, and the model still bottoms near -$3.865 million before break-even.