Commercial Vehicle Dealership Break-Even Analysis: $71K/Month

Fixed costs $63.0K/mo Payroll plus overhead

Contribution margin 88.5% After variable costs

Break-even revenue $71.1K/mo Monthly revenue target

Break-even timing Month 1 Model hits here

Break-even calculator

Use this calculator to test monthly revenue against variable expenses and fixed costs for a commercial vehicle dealership.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Lower sales Higher sales Variable expenses Use direct costs that rise with sales, like prep, delivery, commissions, and marketing. $ Lower costs Higher costs

Money available to cover fixed costs $3,184,627 $3,550,365 revenue - $365,738 variable expenses

Margin ratio

90%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your margin must cover. $ Lower fixed Higher fixed

Break-even chart Revenue Total costs

Which dealership expenses are fixed, and which move with vehicle sales?

Cost classification

Break-even is reliable only if fixed overhead stays separate from sales-linked expenses. In the first year, rent and base payroll sit in fixed overhead, while commissions, marketing, prep, and delivery reduce contribution margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Dealership Rent	Fixed	Include $15,000/month in fixed overhead for the monthly break-even target.	Tying rent to unit sales instead of treating it as a baseline monthly hurdle.
Dealership Insurance	Fixed	Include $1,800/month in fixed overhead because it runs from Month 1 through Month 60.	Leaving insurance out of break-even because it does not touch each sale directly.
CRM & DMS Software Subscriptions	Fixed	Include $1,200/month in fixed overhead during the planning period.	Classifying software as variable just because sales staff use it on deals.
Year 1 Salaried Payroll	Fixed	Include about $39,167/month in fixed overhead for the first operating year.	Counting base salaries as commission-like expense and overstating contribution margin.
Sales Commissions	Variable	Deduct 6.0% of first-year sales revenue when calculating contribution margin.	Putting commissions in fixed overhead, which understates the revenue needed per sale.
Marketing & Advertising	Variable	Deduct 4.0% of first-year sales revenue as a volume-linked selling expense.	Treating all marketing as fixed even when the model scales it with revenue.
Vehicle Preparation & Detailing	Variable	Deduct 0.8% of first-year sales revenue because prep rises with sold units.	Ignoring small percentage charges that add up on high-ticket vehicles.
Utilities	Semi-variable	Start with the listed $2,500/month, then watch for usage increases as service and prep activity grows.	Assuming utilities stay flat after volume rises and bays run more often.

How does break-even shift from a lean launch to a full dealership buildout?

Scenario table

Lean hits break-even fastest because fixed costs stay lower against Year 1 revenue. Base and full cases add staff and overhead, so they need more monthly sales, but they also build a bigger cushion once volume is steady.

Planning figures only; actual break-even moves with mix, staffing, inventory turns, and financing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 launch mix	$1.60M	$184k	$63k	88.5%	$1.36M	Break-even is covered in Month 1, but the cushion is thin.
Base Year 3 standard mix	$3.55M	$366k	$88.8k	89.7%	$3.10M	This is the balanced case: healthy cushion if volume holds.
Full Year 5 expanded mix	$5.66M	$515k	$103.4k	90.9%	$5.04M	Strongest cushion, but it depends on fast inventory turns.

What pushes this dealership above break-even, or knocks it back below the line?

Stress test

The base plan has a wide monthly cushion, but the first warning line is still $71,149 in revenue. If sales slip, rent, payroll, commissions, and marketing push break-even up fast; this view excludes inventory purchase costs and debt service.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$71,149	$1.53M cushion	Strong cushion if launch revenue holds.
Revenue shortfall	Monthly revenue falls to $71,149.	$71,149	$0 gap	No cushion; any extra cost turns profit into loss.
Fixed-cost increase	Monthly fixed costs rise by $1,000.	$72,279	$1.53M cushion	Each $1 of overhead needs about $1.13 of revenue.
Margin pressure	Variable expenses rise to 15.5% of revenue.	$74,547	$1.53M cushion	Lower margin lifts the coverage line fast.
Combined pressure	Monthly revenue falls to $75,000, fixed costs rise by $5,000, and variable expenses rise to 15.5% of revenue.	$80,435	$4,565 gap	Weak sales plus higher overhead can erase the buffer.

Can this dealership clear break-even before you sign the lease and staff up?

Founder checklist

Go only if Year 1 demand can support 100 new trucks, 150 used vans, and 50 lease agreements, and you can fund the $490K launch build plus the $1.145M Month 1 cash need. If either test slips, delay the lease, the full hire plan, and inventory commitments.

1Demand Mix300 units + 50 leases

Verify the Year 1 sales pipe can really deliver this mix, because it is the demand base that makes the break-even story believable.

2Fixed Load$24.8K/mo

Check that rent, utilities, insurance, software, web, supplies, services, and cleaning stay at this monthly floor before wages.

3Margin Floor88.5% CM

Hold Year 1 contribution margin near this level, since prep, delivery, commissions, and marketing together take 11.5% of sales.

4Payroll Ramp$470K/yr

Keep Year 1 payroll at this level and delay extra hires if unit turns lag, because the current staffing plan already assumes sales and prep coverage.

5Cash Cushion$1.145M

Confirm opening cash can cover the $490K launch capex and still leave this Month 1 cushion, since vehicle acquisition and floor-plan interest are outside the operating cost lines.

6Launch Revenue$1.604M/mo

Make sure marketing can support this average monthly revenue at 4.0% of sales, and stay far under the 40% ceiling the model can tolerate.