Closed-Circuit Rebreather Sales Break-Even: $327K/Month

Fixed costs $26.3K/mo Overhead base

Contribution margin 80.5% After variable costs

Break-even revenue $32.7K/mo Monthly target

Break-even timing Month 14 Model break-even

Break-even calculator

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

Lean Base Full

Monthly revenue Monthly sales set the margin pool that has to cover fixed costs. $ Low sales High sales Variable expenses Use inventory sourcing, freight, and selling costs that rise with sales. $ Low costs High costs

Money available to cover fixed costs $148,500 $180,000 revenue - $31,500 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs Include rent, insurance, utilities, software, admin, travel, and payroll. $ Low fixed High fixed

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with sales in a closed circuit rebreather retailer?

Cost classification

Break-even gets reliable only when overhead and sales-driven outflows are split cleanly. In the first year, fixed monthly overhead sits apart from variable rates like 12.0% inventory sourcing and freight and 7.5% marketing and commissions.

Expense	Cost	Break-Even Treatment	Common Mistake
Workshop and Retail Rent	Fixed	Include $4,500/month in recurring overhead from Month 1 through Month 60.	Burying showroom rent inside unit margin.
Insurance and Liability	Fixed	Include $1,200/month in fixed overhead, separate from order volume.	Treating liability coverage as optional after launch.
E-commerce Platform and CRM Fees	Fixed	Include $850/month in overhead before calculating monthly break-even sales.	Moving platform fees into per-order margin.
Inventory Sourcing and Freight	Variable	Subtract 12.0% of first-year revenue before contribution margin.	Classifying freight as overhead instead of sales-linked outflow.
Marketing and Commissions	Variable	Subtract 7.5% of first-year revenue as orders convert from traffic.	Ignoring commission drag when conversion improves.
Wages	Semi-fixed	Start with the $200,000 annual first-year salary run-rate and model FTE step-ups separately.	Treating all payroll as variable with sales.

How does break-even change from a lean launch to a full closed-circuit rebreather shop?

Scenario table

Lean stays below break-even because first-year revenue is too small for the payroll, rent, and service setup. By Year 2 the model clears overhead, and Year 3 adds a wider cushion as revenue and contribution margin both rise.

Planning assumptions only; actual results will move with conversion, staffing mix, and inventory turns.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean CCR launch	$25.5K	$5.0K	$28.9K	80.5%	-$8.3K	Still below break-even; launch overhead is too heavy.
Base CCR shop	$73.1K	$13.5K	$34.7K	81.5%	$24.8K	Clears break-even and starts covering overhead.
Full CCR showroom	$180.0K	$31.5K	$37.8K	82.5%	$110.8K	Well above break-even; supports showroom and service depth.

What pressures the break-even plan for CCR sales?

Stress test

Year 2 still clears break-even, but the buffer narrows fast if conversion slows, freight rises, or insurance jumps. Month 13 is the cash low point at $715K, so the launch needs tight sales and cost control.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$327K	$289K cushion	Year 2 clears the line, but Year 1 does not.
Revenue shortfall	Revenue falls 20% to $585K.	$327K	$170K cushion	A slower technical diver pipeline cuts runway fast.
Fixed-cost pressure	Overhead rises 10% to $338K.	$338K	$258K cushion	Rent, insurance, or payroll creep trims the buffer.
Margin pressure	Variable expense rises 5 points; contribution margin falls to 76.5%.	$327K	$252K cushion	Discounting or freight spikes eat into cash.
Combined pressure	Revenue falls 20%, overhead rises 10%, and margin drops 5 points.	$338K	$109K cushion	The plan stays positive in Year 2, but the Month 13 cash low point gets tight.

Is this founder ready to commit to the lease, demo stock, and service setup?

Founder checklist

Don’t commit to the lease, stock buy, or hiring ramp until dealer access, freight terms, service support, and demand all hold up together. The model still shows $306K in Year 1 revenue, -$100K EBITDA, and a $715K cash low in Month 13, so the launch needs slack.

1Dealer termsSigned first

Secure dealer approval and freight terms before buying inventory so you are not sitting on the $65K showroom build without a clean supply path.

2Demand proof0.8% Y1

Validate visitor-to-buyer conversion before you lock in the $4,500 rent and $1,200 liability insurance, because weak traffic makes the fixed-cost base too heavy.

3Service supportTraining ready

Confirm technician access and training support before you promote complex units, because service gaps hit trust, returns, and repeat sales fast.

4Startup cash$715K floor

Set aside the $145K startup outlays from operating cash and keep enough working capital through the Month 13 cash low, or the launch can stall before break-even.

5Inventory load$65K stock

Carry the initial showroom units only if the cash plan can absorb the stock build, because this is one of the biggest launch uses of cash before sales scale.

6Hiring rampMonth 14

Delay hiring step-ups if conversion lags, since Year 1 revenue is $306K, EBITDA is -$100K, and the model does not reach break-even until Month 14.