Boxing Gym Break-Even Analysis: About $41K Monthly Revenue

Fixed costs $25.3K/mo Core overhead

Contribution margin 84.5% After variable costs

Break-even revenue $30.0K/mo Revenue floor

Break-even timing Month 1 Launch month

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and fixed overhead. $ Low sales High sales Variable expenses Include direct costs that rise with sales, like marketing, processing, and training consumables. $ Low costs High costs

Money available to cover fixed costs $51,626 $57,800 revenue - $6,174 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs Include rent, wages, software, utilities, and other monthly overhead. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which boxing gym expenses are fixed, and which move with sales?

Cost classification

Break-even gets sloppy when rent, coaches, and sales-linked fees are treated the same. Classify each expense by behavior, so Month 1 break-even doesn’t hide staffing steps or volume-based charges.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease	Fixed	Include the $10,000 monthly lease in overhead.	Treating rent as optional during ramp.
Utilities	Fixed	Include the $2,000 monthly charge in overhead.	Ignoring HVAC, lighting, and shower load.
Gym Manager	Fixed	Include the $65,000 annual salary as base payroll.	Leaving management payroll out of break-even.
Boxing Coach	Semi-fixed	Model staffing in steps as FTE rises from 1.0 to 3.0.	Assuming coaching payroll scales smoothly with members.
Personal Trainer	Semi-fixed	Model capacity steps as FTE rises from 1.0 to 2.0.	Adding trainer revenue without matching trainer capacity.
Cost of Merchandise Sold	Variable	Apply 3.0% against merchandise sales.	Putting merchandise margin into membership economics.
Marketing & Advertising	Variable	Apply 8.0% of revenue in the first year, falling to 4.0% by Year 5.	Holding launch acquisition spend flat forever.
Payment Processing Fees	Variable	Apply 2.5% to sales processed through cards or digital payments.	Forgetting fees on recurring memberships.

How does break-even shift from a lean opening to a full boxing gym?

Scenario table

Lean opening is below break-even because lease and coach costs land before the member base is full. By Year 3 and Year 5, more sales spread those fixed costs and the cushion turns positive.

Planning case only; these figures are model assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening case	$219k	$34k	$347k	84.5%	-$162k	Still about $192k short of break-even revenue.
Base operating case	$578k	$78k	$441k	86.5%	$59k	About $59k of operating profit; close to break-even.
Full capacity case	$903k	$104k	$478k	88.5%	$320k	Wide cushion here; break-even risk is low.

What breaks the boxing gym break-even plan?

Stress test

The gym’s first-year plan is already under the line: $219k of revenue versus a $411k break-even, so there’s a $192k gap. A 10% sales slip or a 10% cost lift widens that gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Base forecast: $219k revenue and $347k fixed costs.	$411k	$192k gap	The plan starts well below break-even.
Revenue shortfall	Revenue falls 10% to $197k.	$411k	$214k gap	A small sales drop adds $22k to the shortfall.
Fixed-cost pressure	Fixed costs rise 10% to $382k.	$452k	$233k gap	Higher rent and overhead push break-even farther out.
Margin pressure	Variable expenses rise 5 points to 205%.	$436k	$217k gap	Fee and marketing pressure lift the break-even line.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses reach 205%.	$480k	$225k gap	Stacked pressure leaves the model far from break-even.

What should you verify before signing the boxing gym lease?

Founder checklist

Verify the lease, staffing, and presales before you sign. With a $10,000 monthly lease, about $19.8k in Year 1 monthly payroll, and $14.9k in other fixed costs, the gym needs real member demand lined up fast.

1Lease load$10.0K/mo

Check the site rent first, because the $10,000 monthly lease is the largest non-payroll fixed cost and it sets the cash floor before members ramp.

2Payroll load$19.8K/mo

Confirm the Year 1 staffing plan totals about $19.8k per month across the manager, head coach, coach, admin, and trainer, or break-even shifts out fast.

3Pre-sell demand210 members

Pre-sell the Year 1 mix of 100 basic, 60 unlimited, 20 personal training, and 30 youth members, so the monthly run rate is real before you commit.

4Price mix$60/$100/$300/$80

Test the four price points before launch, because they set the monthly revenue base and need to sell without heavy discounting.

5Class load40% | 22 days

Map that mix against 40% Year 1 occupancy and 22 billable days, or the floor and coach schedule will miss demand or sit empty.

6Launch cash$879K

Hold enough cash for the Month 2 trough, and confirm the $179k capex, $750 insurance line, and waiver flow are ready before opening.