Aircraft Hangar Rental Break-Even Analysis: Month 24 Target

Fixed costs $73.3K-$148.3K/mo Launch to steady

Contribution margin 100% No variable drag

Break-even revenue $148.3K/mo Steady-state target

Break-even timing Month 24 Lease-up point

Break-even calculator

Use this calculator to test monthly rental revenue, direct upkeep, and fixed overhead against break-even for an aircraft hangar rental service.

Lean Base Full

Monthly revenue Revenue sets the pool that can cover direct costs and fixed overhead each month. $ One hangar Full portfolio Variable expenses These are direct costs that rise with occupied hangars, like upkeep and service work. $ Light upkeep Busy upkeep

Money available to cover fixed costs $285,000 $305,000 revenue - $20,000 variable expenses

Margin ratio

93%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead base the business has to cover before profit starts. $ Lean staff Scaled staff

Break-even chart Revenue Total costs

Which hangar rental expenses are fixed, and which move with occupancy?

Cost classification

Break-even gets cleaner when base overhead is separated from usage-linked spend. Here, Month 24 break-even depends on covering recurring fixed items before treating lease-up gains as profit.

Expense	Cost	Break-Even Treatment	Common Mistake
Property Insurance	Fixed	Cover the $12,000 monthly premium regardless of aircraft occupancy.	Treating insurance as tenant-driven when it exists before full lease-up.
Facility Security Services	Fixed	Include the $8,500 monthly charge before measuring tenant contribution.	Allocating security per tenant and understating base overhead.
Utility Base Load	Semi-variable	Model the $15,000 monthly base load, then add usage as occupancy rises.	Assuming utilities are fully variable with rented space.
Marketing and SEO	Semi-fixed	Use the $5,000 monthly run rate, with possible step-ups during lease-up.	Holding marketing flat when new hangars need demand generation.
Software and ERP Licenses	Fixed	Cover the $2,200 monthly system spend as part of operating setup.	Dropping software below the break-even line as back-office spend.
Landscaping and Grounds	Fixed	Include the $3,500 monthly site upkeep in overhead from Month 1.	Missing grounds work because it feels small beside hangar rent.
Rented Hangar Payments	Fixed	Once active, include $25,000, $22,000, and $28,000 monthly rent obligations.	Counting rented hangars only when they are fully occupied.
Maintenance Lead Labor	Semi-fixed	Model staffing in steps because headcount rises from 1.0 FTE to 2.0 FTE by Year 5.	Scaling labor smoothly with revenue instead of adding real people in chunks.

How does break-even shift from a lean start to full hangar build-out?

Scenario table

Lean lease-up stays below break-even because one owned hangar only brings in $65,000 a month while fixed costs run about $73,300. By Month 24, more active hangars lift revenue past the fixed load.

Scenario figures are planning assumptions, not guarantees, and lease-up timing can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean ramp: Hangar Alpha only	$65,000	$0	$73,300	100%	-$8,300	Below break-even; runway depends on faster lease-up.
Base ramp: Hangars Alpha through Foxtrot	$367,000	$0	$154,500	100%	$212,500	Monthly profit is positive, but cumulative break-even still lands at Month 24.
Full build: Seven hangars live	$425,000	$0	$154,500	100%	$270,500	All seven hangars give the strongest cushion after Month 24.

What can push this hangar rental plan past break-even?

Stress test

The base plan clears monthly break-even, but the cash trough still lands at -$2.715 million in Month 26. The main risks are slower tenant fill, higher facility costs, and any new variable service load.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$79,533/mo	$345,467 cushion	Monthly rent covers fixed costs with room to spare.
Revenue shortfall	Rent collections fall 10% from the planned level.	$79,533/mo	$302,967 cushion	A fill delay cuts $42,500 a month from cushion.
Fixed-cost pressure	Facility insurance, security, and utilities rise 15%.	$86,463/mo	$338,537 cushion	Those fixed lines move fast because they start at $46,200 a month.
Margin pressure	Add $15,000 a month of repairs, cleaning, and snow removal.	$94,533/mo	$330,467 cushion	With $0 variable expenses in the base case, this hits margin right away.
Combined pressure	Rent falls 10%, facility costs rise 15%, and $15,000 a month of variable load starts.	$94,533/mo	$287,967 cushion	This is the clearest path to a deeper cash squeeze before Month 24.

Is the next hangar commitment ready to clear break-even?

Founder checklist

Only move ahead if you have signed or near-signed tenants for each start, the $73.3K monthly fixed load is covered, and reserves can absorb the $2.715M cash trough. Do not mix that with asset spend: owned purchases total $7.9M and construction budgets total $1.775M.

1Tenant pipeline$22K-$28K/mo

Verify signed or near-signed tenants before Month 1, Month 3, Month 6, Month 9, Month 13, Month 16, and Month 19 so the rent checks are in hand before each new hangar starts.

2Fixed load$73.3K/mo

Check that insurance, security, utilities, marketing, software, landscaping, and core wages stay inside this monthly burn from Month 1.

3Rate band$50K-$75K/mo

Confirm the occupied-hangar rent mix can carry the platform because there are no variable expenses to hide a weak lease spread.

4Core staffing4 core FTE

Keep the general manager, maintenance lead, operations coordinator, and security supervisor in place from Month 1, and add sales only when demand justifies it.

5Reserve cushion-$2.715M

Hold enough cash to cover the Month 26 low point and the Year 1 to Year 2 EBITDA losses before you commit to another build.

6Breakeven rampMonth 24

Use Month 24 as the break-even target, and do not bank on payback before the model’s 60-month horizon.