Bicycle Repair Shop Break-Even: $27K Monthly Revenue Target

Fixed costs $5.6K/mo Overhead base

Contribution margin 86.5% After variable

Break-even revenue $6.4K/mo Target sales

Break-even timing Month 5 Launch month

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs stack up against break-even for a bicycle repair shop.

Lean Base Full

Monthly revenue Revenue is what funds direct and fixed costs. $ Lower sales Higher sales Variable expenses Direct costs that rise with each repair visit. $ Lower costs Higher costs

Money available to cover fixed costs $94,852 $108,275 revenue - $13,423 variable expenses

Margin ratio

88%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the shop must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which bicycle repair shop expenses are fixed, and which move with repair sales?

Cost classification

Break-even only works if rent, staffing capacity, parts, and card fees sit in the right buckets. Put volume-driven costs in overhead, and the model will overstate margin per repair visit.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease	Fixed	Include $3,500 per month in fixed overhead from Month 1 through Month 60.	Treating rent as flexible when daily visits rise or fall.
Utilities	Semi-fixed	Use the $750 monthly baseline, then model step-ups when hours, bays, or seasonal shop load increase.	Ignoring peak-season usage once repair volume gets busier.
Business Insurance	Fixed	Include $300 per month in fixed overhead across the operating period.	Tying insurance directly to repair volume instead of coverage needs.
Software Subscriptions	Fixed	Include $200 per month as a stable operating expense for scheduling, point-of-sale, or shop systems.	Burying software inside payment processing fees.
Shop Supplies	Semi-variable	Start with the $250 monthly baseline, then add usage-linked consumables as repair visits grow.	Treating every rag, cleaner, and small shop item as fixed.
Tool Maintenance	Semi-fixed	Use the $150 monthly baseline, with step-ups as more workstations and tool hours are used.	Missing maintenance jumps when bays get busier.
Parts Inventory Cost	Variable	Model as 7.0% of revenue in the first year, declining to 6.0% by the mature year.	Treating parts like overhead instead of a sales-linked repair input.
Credit Card Processing Fees	Variable	Model as 2.5% of revenue in the first two years, then 2.4% to 2.3% as rates improve.	Forgetting that higher card mix raises fees as sales grow.

How does break-even change from a lean bike shop to the base plan and full build?

Scenario table

Break-even moves fast because each case changes traffic and staffing load. The lean shop stays near the line, the base plan clears fixed costs, and the full build gets a much wider cushion.

These are planning assumptions built from the model, so they show direction, not a guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean bike shop	$24.5k	$3.3k	$23.6k	86.5%	-$2.5k	Still below break-even, so a slow winter would hurt fast.
Base opening plan	$45.8k	$6.2k	$23.6k	86.5%	$16.0k	Covers fixed costs and leaves a workable cushion.
Full stabilized shop	$167.0k	$18.9k	$28.2k	88.7%	$119.9k	High volume and a richer mix create a strong cushion, but staff capacity must keep up.

What can push a bicycle repair shop below break-even?

Stress test

At $458k monthly revenue and an 86.5% contribution margin, the shop has about $160k of monthly cushion over $236k fixed costs. The risk is a winter traffic dip plus higher rent, labor, or parts costs; that mix can erase the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$273,000	$185,000 cushion	Strong cushion if volume holds.
Revenue shortfall	Revenue falls 15%.	$273,000	$117,000 cushion	A mild demand dip still clears break-even.
Fixed-cost pressure	Fixed costs rise 10%.	$300,000	$158,000 cushion	Rent or wage creep trims room fast.
Margin pressure	Variable expenses rise to 18.5% of revenue.	$290,000	$168,000 cushion	Parts or fee inflation eats profit buffer.
Combined pressure	Revenue falls 35%, fixed costs rise 10%, and variable expenses rise to 16.5% of revenue.	$311,000	$11,000 gap	This is the tipping point; winter slowdown plus higher costs can flip the month negative.

Can this bicycle repair shop cover break-even before you sign the lease and buy the tools?

Founder checklist

Do the math before you lock in rent, staff, and equipment. This shop needs enough daily visits, enough cash for the Month 2 low, and a plan that still works with break-even in Month 5.

1Traffic15/day

Verify the bay and intake flow can handle 15 visits a day in Year 1, because that is the demand level the model needs to reach break-even.

2Lease load$3.5K/mo

Check that $3,500 of monthly rent fits the early sales curve, since the lease starts on day one and does not wait for traffic.

3Payroll$217K/yr

Confirm Year 1 wages can stay near $217,000 and still leave room for the front desk workflow, or fixed labor will outrun cash.

4Margin mix13.5%

Verify parts, card fees, and marketing stay near 13.5% of revenue, so service work still leaves enough gross cash for rent and payroll.

5Tooling plan$75K

Lock the $40,000 build-out plus $25,000 of specialized tools and $10,000 of workstands and benches before opening, or the shop starts underequipped.

6Cash reserve$836K

Keep working capital that covers the Month 2 cash low of $836,000 and the Month 5 break-even timing, because launch will not fund itself.