Glass Blowing Studio Break-Even Analysis: $403K Monthly With Payroll

Fixed costs $30.9K/mo Core overhead base

Contribution margin 82.5% After variable costs

Break-even revenue $37.5K/mo Covering overhead

Break-even timing Month 1 Model break-even

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for the studio.

Lean Base Full

Monthly revenue Revenue has to cover variable costs before it can pay fixed studio overhead. $ Low sales High sales Variable expenses These are the direct costs that rise as classes, rentals, and sales grow. $ Light costs Heavy costs

Money available to cover fixed costs $61,875 $75,000 revenue - $13,125 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the studio must cover before profit starts. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which glass blowing studio expenses are fixed and which move with sales?

Cost classification

Break-even is only useful if each expense is classified by how it behaves. Fixed rent and scheduled payroll set the monthly hurdle, while materials, card fees, and usage-linked costs move with class volume and gallery sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio Rent	Fixed	Include the $7,000 monthly rent in overhead from Month 1.	Spreading rent by seat and hiding the true monthly hurdle.
Utilities Gas Electricity	Semi-variable	Include the $3,500 base load in overhead, then track extra furnace and firing use as volume rises.	Treating all energy use as fixed even when workshop time increases.
Equipment Maintenance	Semi-fixed	Carry the $800 monthly amount in overhead, with step-ups when heavier use strains furnaces, ovens, and tools.	Assuming maintenance grows smoothly with every class sold.
Cleaning Services	Semi-variable	Use the $550 monthly base in overhead, then add labor or frequency when class traffic and studio rentals grow.	Ignoring extra cleanup after higher occupancy days.
Raw Materials Glass Colorants	Variable	Model at 6.0% of revenue in the first year because glass and colorants rise with class, workshop, and gallery activity.	Budgeting materials as a flat monthly amount.
Marketing Advertising	Variable	Model at 6.0% of revenue in the first year and reduce the rate only if bookings grow without the same ad spend.	Calling marketing fixed when paid campaigns scale with enrollment.
Payment Processing Fees	Variable	Apply the 2.5% first-year rate to card-based sales, classes, workshops, private groups, and studio rentals.	Leaving card fees out of contribution margin.
Part-time Instructors	Semi-fixed	Treat scheduled instructor capacity as a payroll step, starting at 1.0 FTE in the first year and rising with planned volume.	Treating instructor payroll as fully variable when shifts are scheduled before seats sell.

How does break-even change from a lean launch to a full studio calendar for this glass blowing studio?

Scenario table

Break-even moves with class mix and retail income because fixed payroll and studio overhead stay heavy. The lean case still misses cover, the base case sits close, and the full case gives a much wider cushion.

Planning case only: these figures are assumptions for decision-making, not a promise of results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$24,700	$4,323	$33,225	82.5%	-$12,848	Still below break-even, so fixed-cost coverage is tight.
Base workshop case	$45,850	$6,510	$38,433	85.8%	$906	Near break-even, with only a small cushion.
Full studio calendar case	$68,500	$8,083	$41,350	88.2%	$19,067	Clear cushion, so higher volume covers fixed costs well.

What breaks the break-even plan for a glass blowing studio?

Stress test

The plan breaks fast if class bookings soften or gas and supply costs climb. In Year 1, revenue is $24,700 against a $40,273 break-even point, so the studio starts with a $15,573 gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$40,273	$15,573 gap	Year 1 sales are below break-even, so fill rate matters.
Revenue shortfall	Revenue falls 10% to $22,230.	$40,273	$18,043 gap	Lower intro class and private group sales widen the gap.
Fixed-cost pressure	Fixed costs rise 10%.	$44,300	$19,600 gap	Rent, utilities, or hiring creep makes the gap harder to close.
Margin pressure	Variable expenses rise to 225%.	$42,871	$18,171 gap	Higher gas and supply bills lift break-even fast.
Combined pressure	Revenue falls 10%, variable expenses rise to 225%, and fixed costs rise 10%.	$44,020	$19,320 gap	Weak bookings and cost creep create a cash squeeze.

Can you prove the glass blowing studio can clear break-even before you sign the lease and place the furnace order?

Founder checklist

Don’t sign the lease or place the furnace order until the model shows monthly revenue above $40,300 and enough cash to survive the Month 5 low point of $789,000. The Year 1 mix is only $24,700 a month, so the gap has to close before opening.

1Revenue Path$40.3K/mo

The Year 1 mix of 60 intro classes, 20 advanced workshops, 5 private groups, 15 rentals, and $1,500 consignment only gets you to $24,700 a month, so seat count and group bookings must rise before opening.

2Lease Load$12.6K/mo

Verify $7,000 rent and $3,500 utilities first, because that base load is locked in before you add maintenance, insurance, software, cleaning, or payroll.

3Contribution82.5% CM

Raw materials, gallery inventory, marketing, and payment fees total 17.5% in Year 1, so each sales dollar must still leave room for payroll and overhead.

4Core Buildout$260K core

Fund the $120,000 furnaces and glory holes, $40,000 annealing ovens, and $100,000 buildout and ventilation before you commit to the smaller launch items.

5Cash Floor$789K

Hold cash through the Month 5 minimum of $789,000, because the launch burn is heavy before bookings and gallery sales settle in.

6Staff Ramp1.0→3.0 FTE

Keep part-time instructor capacity flat until bookings can pay for the next payroll step, and track payback against the 14-month model output.