Computer Hardware Store Break-Even: $256K Monthly Revenue

Fixed costs $16.0K/mo Core overhead

Contribution margin 88.5% After variable costs

Break-even revenue $18.1K/mo Needed each month

Break-even timing Month 14 Model crossover

Break-even calculator

Use this to test monthly sales, direct costs, and fixed overhead against break-even for a computer hardware store.

Lean Base Full

Monthly revenue More monthly sales give you more margin to cover fixed costs. $ Slow month Busy month Variable expenses These rise with sales, like shipping, fees, and sales-linked costs. $ Low costs High costs

Money available to cover fixed costs $32,000 $80,000 revenue - $48,000 variable expenses

Margin ratio

40%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the store must cover either way. $ Tight overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or semi-fixed for a computer hardware store break-even model?

Cost classification

Break-even only works when rent and base payroll sit in overhead, while freight, card fees, and commissions move with sales. Misclassify one big line, and Month 14 break-even can look cleaner than cash will feel.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Rent	Fixed	Count $4,000 per month in overhead from Month 1 through Month 60.	Treating lease payments as sales-linked.
Store Manager payroll	Fixed	Include $65,000 per year, or about $5,417 per month, in base overhead.	Ignoring manager payroll before traffic ramps.
Sales Associate payroll	Semi-fixed	Model as staffing steps: 2 FTE in the first year, rising to 4 FTE by the fourth year.	Hiring ahead of visitor and buyer growth.
Inbound Shipping & Logistics	Variable	Apply as a sales-linked charge: 3.0% of revenue in the first year, declining to 2.0% by the fifth year.	Burying freight in inventory and missing margin drag.
Payment Processing Fees	Variable	Apply 2.5% of revenue in the first year, falling to 2.0% by the fifth year.	Using cash sales only and undercounting card fees.
Sales Commissions	Variable	Apply 5.0% of revenue in the first year, declining to 4.0% by the fifth year.	Putting commissions in fixed payroll instead of contribution margin.
POS System & Software Subscriptions	Fixed	Count $250 per month in fixed overhead for the full model period.	Treating software as a one-time setup.
Utilities	Semi-variable	Start with the $800 monthly base assumption, then watch usage as demos, repairs, and store hours grow.	Ignoring higher power and internet usage as traffic scales.

How does break-even change from a lean setup to a full-scale computer hardware store?

Scenario table

Break-even shifts with payroll, rent, and traffic. Lean keeps the cost base lowest, while the base and full setups need more sales just to stay ahead of higher staffing.

These are planning assumptions, not guaranteed store results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean counter setup	$256k	$227k	$22.7k	11.5%	$6.8k	Thin cushion; a small traffic miss can wipe it out.
Base store setup	$292k	$260k	$26k	10.9%	$5.8k	Reference case; break-even lands near Month 14.
Full-scale store setup	$420k	$381k	$38.1k	9.3%	$0.9k	Almost flat; higher payroll leaves very little room.

What pressures push this computer hardware store past break-even?

Stress test

The plan is most exposed to softer traffic, higher payroll or rent, and a mix shift into lower-margin core components. Year 1 EBITDA is -$99k, and minimum cash need reaches $555k in Month 13 before break-even in Month 14.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.29M	$361k gap	Year 1 EBITDA is -$99k, so cash has to carry the store to Month 14.
Revenue shortfall	Conversion falls to 8.1% from 9.0%.	$1.29M	$454k gap	Traffic softness widens the gap without changing fixed costs.
Fixed-cost pressure	Monthly overhead rises by $1k from rent, payroll, or software.	$1.33M	$404k gap	A small overhead bump adds about $43k to the break-even hurdle.
Margin pressure	Contribution margin falls 1 point from freight and a heavier core-component mix.	$1.34M	$408k gap	Lower margin eats the cushion faster than sales growth can replace it.
Combined pressure	Conversion falls to 8.1%, monthly overhead rises $1k, and margin falls 1 point.	$1.39M	$547k gap	This is the case to model before signing rent or payroll commitments.

Can this computer hardware store clear break-even before you lock the lease and inventory?

Founder checklist

Open only if you can support about 665 weekly visitors, hold fixed overhead inside plan, and keep the Year 1 staffing and inventory load from outrunning sales. If traffic or supplier terms slip, break-even pushes past Month 14 and cash need rises to at least $555K.

1Demand Proof665/wk

Verify the store can draw 665 weekly visitors and turn about 9.0% into buyers in Year 1, because that is the traffic level behind the break-even path.

2Fixed Load$22.7K/mo

Check that $6.0K of rent and other fixed overhead, plus about $16.7K a month for Year 1 payroll, still leaves room for the store to reach break-even.

3Variable Load11.5%

Keep payment processing at 2.5%, sales commissions at 5.0%, inbound shipping at 3.0%, and quality control at 1.0%, because that 11.5% load hits margin before product cost.

4Staffing Ramp4.0 FTE

Hold Year 1 staffing to 1 manager, 2 associates, and 1 technician, and do not hire faster than traffic grows, or payroll will outrun sales.

5Cash Cushion$555K

Keep at least $555K of cash, since the model hits its low point in Month 13 and does not reach break-even until Month 14.

6Mix Shift40% core

Track supplier terms against the $150K initial stock and the $309K total startup spend, because core components still make up 40% of Year 1 sales and slow turns will tie up cash.