RV Park Break-Even Analysis: $477K Monthly Revenue Target

Fixed costs $40.6K/mo Year 1 overhead

Contribution margin 85% After variable costs

Break-even revenue $47.7K/mo Monthly target

Break-even timing Month 25 Model break-even

Break-even calculator

If your park is still filling spaces, this calculator shows how monthly revenue, variable expenses, and fixed costs drive break-even.

Lean Base Full

Monthly revenue Revenue is the cash you have left to cover fixed overhead after direct costs. $ Low sales High sales Variable expenses These are direct costs that rise with occupancy and guest spending. $ Low costs High costs

Money available to cover fixed costs $69,658 $75,000 revenue - $5,342 variable expenses

Margin ratio

93%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your contribution margin has to cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which RV park expenses are fixed, and which move with sales?

Cost classification

Break-even gets more useful when fixed overhead stays separate from usage-driven spending. For this RV park, the model must carry heavy monthly commitments while scaling card fees, store goods, and guest utility usage with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Property Loan Payment	Fixed	Include $15,000/month in overhead before testing occupancy break-even.	Hiding debt-like payments inside margin.
Property Insurance	Fixed	Include $2,000/month as a stable operating requirement.	Treating insurance as occupancy-based.
Marketing and Advertising	Semi-fixed	Start with $2,500/month, then step up only when the plan calls for more demand.	Assuming spend stops in slow season.
Property Maintenance	Semi-variable	Use the $3,500/month baseline, and leave room for repair spikes as site use rises.	Modeling repairs as flat forever.
Store Inventory	Variable	Apply 7.0% of revenue tied to resale goods.	Counting store sales without the goods sold.
Payment Processing Fees	Variable	Apply 2.5% of revenue from card-based guest payments.	Forgetting card fees on reservations and add-ons.
Utilities Guest Usage	Variable	Apply 3.5% of revenue for guest-driven electric, water, and sewer use.	Underpricing heavy utility use by occupied sites.
Payroll	Semi-fixed	Use $16,750/month in the first year, based on planned staffing levels.	Hiring ahead of occupancy before revenue supports it.

How does break-even shift across lean, base, and full RV park cases?

Scenario table

Break-even improves as monthly revenue scales while the variable burden stays at 15%. In the lean case, fixed costs still outrun contribution; by the base and full cases, the park clears overhead and builds cushion.

Planning cases only; actual results can shift with occupancy, pricing, and cost control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean ramp-up case	$37,500	$5,625	$40,550	85%	-$8,675	Still below break-even; fixed costs outrun contribution.
Base stabilized case	$75,000	$11,250	$43,967	85%	$19,783	Covers overhead and turns monthly profit.
Full mature case	$104,167	$15,625	$47,383	85%	$41,159	Builds a wider cushion above break-even.

What breaks the RV park break-even plan first?

Stress test

The Year 3 plan clears break-even, but the cushion is thin once occupancy slips or costs rise. A 10% revenue drop, a 5-point margin hit, or a 10% fixed-cost jump all shrink the buffer fast; the combined stress leaves only about $5,637 before unlisted items.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Year 3 revenue stays at $75,000/month with an 85% contribution margin and about $43,967 in fixed monthly costs.	$51,726	$23,274 cushion	Healthy cushion, but weak weekday occupancy can still pressure cash.
Revenue shortfall	Monthly revenue falls 10% to $67,500 while margin stays 85%.	$51,726	$15,774 cushion	Lower occupancy cuts the buffer fast.
Fixed-cost increase	Fixed monthly costs rise 10% to about $48,363.	$56,898	$18,102 cushion	Insurance, payroll, and maintenance can erase room quickly.
Margin pressure	Variable burden rises from 15% to 20%, cutting contribution margin to 80%.	$54,959	$20,041 cushion	Unpaid utility pass-throughs and repairs hit margin hard.
Combined pressure	Revenue drops 10%, variable burden rises to 20%, and fixed costs rise 10%.	$60,454	$5,637 cushion	This leaves little room for weak occupancy or deferred maintenance.

What should you verify before you commit to the RV park build?

Founder checklist

Check site control, utility capacity, and opening demand before you commit the big spend. The model stays cash-negative through Month 25 and only turns positive later, so the park has to hold traffic, staffing, and cash through that slow ramp.

1Site control$1.245M build

Confirm you control the site before you release the $1.245M build budget, because grading, hookups, roads, and amenities all depend on one usable parcel.

2Utility capacity$450K hookups

Verify water, sewer, electric, and sanitation can handle guest load before the $450,000 hookup spend, because weak capacity breaks the guest promise and adds rework.

3Launch rulesPrelaunch ready

Set nightly and monthly rates, booking rules, payment timing, and cancellation terms before launch month so you can test real demand before hiring up the front desk.

4Fixed load85% CM

After 15% variable costs, each dollar keeps 85 cents for the $40.6K monthly fixed load, so site rentals and store sales have to cover payroll and debt.

5Staffing ramp4.0 to 6.0 FTE

Stage hiring to occupancy, because the plan starts at 4.0 FTE in Year 1 and rises to 6.0 FTE by Year 4, so full desk coverage only works if stays are filling.

6Cash cushion-$502K low

Keep reserve cash through Month 25, because minimum cash drops to -$502,000 before breakeven arrives and payback still takes 32 months.