Candy Store Break-Even Analysis: About $158K Monthly Sales

Fixed costs $12.9K Monthly base

Contribution margin 81.5% After variable costs

Break-even revenue $15.8K Monthly target

Break-even timing Month 7 Model payback point

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue is the cash coming in before direct costs and overhead. $ Low sales High sales Variable expenses Inventory, packaging, and card fees rise as sales rise. $ Light costs Heavy costs

Money available to cover fixed costs $58,310 $70,000 revenue - $11,690 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the store must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which candy store expenses are fixed, variable, semi-variable, or semi-fixed at break-even?

Cost classification

Break-even is only reliable when rent, payroll, inventory, and fees sit in the right buckets. This store reaches break-even in Month 7, so locked costs before traffic proves out carry the most risk.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Lease	Fixed	Use $3,500 per month as a fixed hurdle before any candy is sold.	Spreading rent by visitor and missing slow-week downside.
Utilities	Semi-variable	Start with the $450 monthly baseline, then add usage pressure as traffic and cooler use rise.	Treating the full bill as fixed in busier months.
POS System Subscription	Fixed	Model the $80 monthly subscription as fixed operating overhead.	Combining the subscription with sales-linked card fees.
Store Cleaning Service	Semi-fixed	Use $200 per month until store hours or traffic require another service level.	Modeling cleaning as a percent of sales.
Store Manager payroll	Fixed	Use the $55,000 annual salary as fixed monthly labor in the break-even base.	Assuming management pay flexes with daily sales.
Retail Associate payroll	Semi-fixed	Model staffing in steps: 1.5 FTE support in the first year, with higher coverage later.	Treating associate labor as fully variable per transaction.
Cost of Confectionery Inventory	Variable	Apply 12.0% of first-year sales, then reduce the rate by year as forecasted.	Treating inventory buys as fixed instead of sales-driven.
POS Transaction Fees	Variable	Apply 1.5% of first-year sales because fees move with card volume.	Putting payment fees below break-even as fixed software spend.

How does break-even shift from lean staffing to full staffing in a candy store?

Scenario table

As traffic and staffing rise, fixed costs climb faster than the margin cushion. That moves monthly break-even sales from about $158K in lean mode to about $239K in full mode.

Planning assumptions only; actual sales, labor, and rent can move break-even up or down.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch staffing	$158.3K	$29.3K	$129K	81.5%	$0	Lowest fixed burden, but the cushion is still thin.
Base repeat-demand staffing	$200K	$35.2K	$165K	82.4%	$0	Repeat buyers start to support the higher fixed load.
Full weekend-and-gift-box staffing	$238.7K	$37.7K	$201K	84.2%	$0	Only scale here when weekends and gift boxes can carry labor.

What pushes this candy store below break-even?

Stress test

The plan is tight if weekday traffic or conversion slips. Break-even sits near $158K a month, and a small sales drop, $1,000 higher rent, or weaker contribution margin (sales left after variable costs) can move it from cushion to gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in traffic, pricing, or costs.	$158K	$0 cushion	No cushion at the base plan.
Revenue shortfall	Monthly sales run 10% below the base plan.	$158K	$13K gap	Slow weekday conversion can wipe out the buffer.
Fixed-cost increase	Store rent rises by $1,000 a month.	$170K	$12K gap	Higher rent pushes the sales bar up fast.
Variable-expense pressure	Variable expenses rise from 18.5% to 22.5% of sales.	$166K	$8K gap	Discounting gift boxes and shrink can cut margin fast.
Combined pressure	Rent rises by $1,000 and variable expenses rise to 22.5%.	$179K	$21K gap	Adding payroll before repeat orders prove out can tip this into gap.

Can this candy store clear break-even before you sign the lease?

Founder checklist

Yes, but only if Year 1 traffic, margin, and staffing stay close to the model. Break-even lands in Month 7, so cash has to carry the store through the Month 2 trough and the build-out gap before sales catch up.

1Traffic Pull$37.0K/mo

Verify local foot traffic and 15.0% conversion can support about $37.0K in monthly sales, or the lease and payroll will outrun demand.

2Lease Load$12.9K/mo

Confirm rent plus Year 1 payroll and store overhead stay near $12.9K per month, because a higher fixed load pushes break-even out fast.

3Margin Stack81.5% CM

Lock suppliers and pricing so direct cost stays at 18.5% of sales, which leaves the 81.5% contribution margin needed to pay fixed costs.

4Staff Ramp2.5 FTE

Start with the modeled 2.5 FTE in Year 1 and hold the marketing coordinator until Month 13 unless sales clearly justify the extra payroll.

5Cash Cushion$844K

Protect enough cash to cover the Month 2 low of $844K while build-out, inventory, and early payroll are still flowing out.

6Break-Even TimingMonth 7

Use Month 7 as the opening test for break-even and do not commit to the launch path unless sales, traffic, and staffing can reach that point on schedule.