Bingo Hall Break-Even Analysis: $31K-$35K Monthly Revenue Target

Fixed costs $8.0K/mo Monthly overhead

Contribution margin 81.5% After variable costs

Break-even revenue $9.8K/mo Monthly target

Break-even timing Month 2 Launch ramp

Break-even calculator

See whether monthly revenue covers variable costs and fixed overhead in a bingo hall.

Lean Base Full

Monthly revenue Revenue feeds the margin that must cover fixed overhead. $ Low sales Busy month Variable expenses Prize payouts, snack COGS, marketing, and payment fees move with sales. $ Light costs Heavy costs

Money available to cover fixed costs $29,384 $33,375 revenue - $3,991 variable expenses

Margin ratio

88%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the hall has to cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which bingo hall expenses are fixed, and which move with sales?

Cost classification

Break-even only works if stable venue overhead stays separate from costs that rise with sessions, snack bar visits, and bookings. In the first year, fixed overhead is $7,950/month before payroll, while variable costs reduce contribution on each sale.

Expense	Cost	Break-Even Treatment	Common Mistake
Venue Rent	Fixed	Include $5,000/month in monthly overhead from Month 1 through Month 60.	Treating rent as lower when attendance is light.
Utilities Base	Fixed	Include the $1,000/month base amount in fixed overhead for break-even.	Treating all power use as attendance-driven.
Business Insurance	Fixed	Include $500/month as stable operating overhead.	Leaving insurance below the break-even line.
Payroll	Semi-fixed	Model first-year payroll at about $20,417/month, then increase it in staffing jumps as headcount rises.	Spreading labor as a smooth percent of sales.
Prize Payouts	Variable	Apply 11.0% in the first year against revenue tied to play activity.	Treating prizes as fixed or ignoring payout ratio changes.
Food Beverage Merchandise COGS	Variable	Apply 3.5% in the first year to capture snack bar and merchandise input costs.	Counting snack bar revenue but missing its supply cost.
Marketing Advertising	Variable	Use 3.0% of revenue in the model, but separate campaign retainers if they become committed spend.	Assuming every ad dollar disappears when sales dip.
Payment Processing Fees	Variable	Apply 1.0% of revenue as a per-transaction expense.	Forgetting card fees when estimating contribution margin.

How does break-even shift as a bingo hall moves from lean to full scale?

Scenario table

Higher attendance lifts revenue faster than fixed rent and staff costs, so the cushion widens as the hall moves from lean to full scale. The first year is tight, but Year 3 and Year 5 cover overhead more easily.

Planning cases only; actual traffic, pricing, and staffing needs can change these results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening-year hall	$33.4k	$6.2k	$28.4k	81.5%	-$1.2k	Thin cushion; early traffic has to hold to keep break-even on track.
Base year-three hall	$64.2k	$11.0k	$35.5k	82.9%	$17.8k	Healthy cushion; revenue covers fixed cost more comfortably.
Full year-five hall	$103.3k	$16.2k	$41.5k	84.3%	$45.6k	Strong cushion; fixed-cost pressure is easier to absorb at scale.

What breaks the break-even plan if attendance drops or costs rise?

Stress test

Year 1 sits near break-even, with about a $14k monthly gap at the base plan. A 10% revenue drop, a 10% fixed-cost jump, or a 3-point variable-cost rise each widen that gap; together, it reaches about $76k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue or costs.	$348k	$14k gap	Thin cushion if weekday sessions soften.
Revenue shortfall	Revenue falls 10% from the base plan.	$348k	$39k gap	Weak traffic and low snack bar attach rate hit fast.
Fixed-cost increase	Fixed costs rise 10% across rent and utilities.	$383k	$49k gap	Rent or utility creep can erase the cushion.
Margin pressure	Variable expense load rises by 3 points.	$361k	$27k gap	Higher prize expectations or overtime squeeze margin.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable load rises 3 points.	$376k	$76k gap	Demand and cost pressure leave little room to absorb misses.

Can this bingo hall clear break-even before you sign the lease and spend on buildout?

Founder checklist

Don’t lock the lease, full staffing, or opening spend until the hall can support about $31K-$35K in monthly break-even revenue. The model only works if Year 1 traffic, prize payouts, and fixed costs stay close to plan.

1Break-even$31K-$35K/mo

Confirm the site can clear this band with Year 1 bingo, snack, event, and extra income before you lock the lease.

2Venue capacity10,000/yr

Check that seating, parking, restrooms, and the snack queue can handle 10,000 Year 1 bingo sessions without slowing the room.

3Prize rate11.0% payout

Keep prize payouts near 11.0% of bingo revenue so the $25 session price still leaves room for profit.

4Fixed load$28.4K/mo

Verify rent, utilities, insurance, taxes, software, cleaning, security, and Year 1 payroll stay near this monthly load before you add more staff.

5Team load7.0 FTE

Test whether the Year 1 team of 7.0 FTE can cover hosting, snacks, security, cleaning, and marketing without overtime that breaks the plan.

6Cash runway$700K by M13

Fund the $285K buildout and still keep minimum cash at $700K by Month 13, because Month 2 break-even is not the same as safe runway.