Coworking Space Break-Even Analysis: $98K Monthly Revenue

Fixed costs $35.0K Monthly base costs

Contribution margin 82% After variable spend

Break-even revenue $42.7K Monthly revenue target

Break-even timing Month 9 Model turns positive

Break-even calculator

Use this calculator to test whether monthly revenue covers variable costs and fixed overhead, then see how close the space is to break-even.

Lean Base Full

Monthly revenue This is the cash coming in each month before direct costs and overhead. $ Low sales High sales Variable expenses Use direct costs that move with occupancy and bookings, like commissions, consumables, and partner fees. $ Low direct costs High direct costs

Money available to cover fixed costs $154,000 $184,200 revenue - $30,200 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs Use the monthly cost base the space must cover, including lease, payroll, and admin. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which coworking space expenses are fixed, and which move with sales?

Cost classification

Break-even gets sharper when lease overhead, payroll, and usage-driven spend are split correctly. Treating supplies, events, or processing fees like rent can make Month 9 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease Payment, $25,000/month	Fixed	Include as monthly overhead that must be covered before profit.	Spreading rent by member too early and hiding the real occupancy hurdle.
Property Insurance, $1,500/month	Fixed	Model as stable facility overhead across the monthly planning range.	Tying insurance to desk sales when it does not move with bookings.
Base Utilities, $3,000/month	Semi-fixed	Hold flat until hours, rooms, or occupancy push a step-up.	Modeling all utilities as variable and understating the empty-space burn.
Professional Cleaning Services, $2,500/month	Semi-fixed	Keep as a base service that rises in steps as usage grows.	Treating cleaning like rent, even when traffic drives extra shifts.
Payroll, $35,625/month in first year	Semi-variable	Separate core staffing from added coverage as members and rooms scale.	Keeping payroll flat while front desk and community needs expand.
Payment Processing Fees, 2.5% of revenue in first year	Variable	Apply directly to paid memberships, rooms, and service revenue.	Forgetting fees on every card-paid sale.
Member Consumables, 3.0% of revenue in first year	Variable	Move with member usage, traffic, and booked space.	Treating usage-driven supplies like fixed rent.
Community Event & Engagement Costs, 4.0% of revenue in first year	Variable	Scale with sales activity and member engagement plans.	Locking event spend at one monthly amount regardless of demand.

How does break-even shift across lean, base, and fuller utilization scenarios for a coworking space?

Scenario table

Lean stays below $98,323 in monthly revenue, base sits at break-even, and full clears it. Year 1 EBITDA is -$222,000, then Year 2 reaches $474,000, so the ramp is the real story.

Planning figures are assumptions, not guarantees, and actual results can move with demand, pricing, and cost control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean utilization case	$75,000	$13,500	$80,625	82%	-$19,125	Below break-even; the loss mirrors the contribution gap.
Base break-even case	$98,323	$17,698	$80,625	82%	$0	At break-even; operating profit is near zero.
Full utilization case	$120,000	$21,600	$80,625	82%	$17,775	Above break-even; it creates a cushion for softer months.

What breaks the break-even plan for a coworking space?

Stress test

At an 82% contribution margin and $80,625 of fixed costs, break-even revenue is about $98,323 a month. The plan gets fragile if membership sales soften, meeting room demand drops, or payroll, utilities, and cleaning rise.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$98,323	$0 cushion	No cushion if demand slips.
Revenue shortfall	Monthly revenue runs 10% below plan.	$98,323	$9,832 gap	Weak member sales and room bookings hit cash fast.
Fixed-cost increase	Monthly fixed costs rise by $5,000 from payroll, utilities, and cleaning.	$104,421	$6,098 gap	Every $1,000 adds about $1,220 to break-even.
Margin pressure	Contribution margin slips from 82% to 81%.	$99,537	$1,214 gap	Small fee and discount pressure still moves the line.
Combined pressure	Monthly revenue runs 10% below plan, fixed costs rise by $5,000, and margin slips to 81%.	$105,710	$17,219 gap	A softer launch plus cost creep leaves a bigger hole.

Can a coworking space prove demand and cash can cover the lease before you commit?

Founder checklist

Before you sign the lease, test whether pre-sales, pricing, and staffing can support about $98,323 in monthly revenue. The model also needs the $690,000 buildout funded and enough cash to reach Month 8 with the $1,000 minimum reserve intact.

1Pre-sales$98.3k/mo

With a $120,000 Year 1 marketing budget and $350 CAC, verify the funnel can produce enough signed members to reach $98,323 in monthly revenue; otherwise the lease starts too early.

2Lease Load$25k/mo

The $25,000 monthly lease sits under every forecast, so check that occupancy can carry it even if sign-ups arrive slower than planned.

3Buildout Funds$690k

Fund the $690,000 buildout, furniture, IT, and room setup before opening; if that spend is short, you'll hit the cash floor before revenue matures.

4Price Mix5 tiers

Verify the mix of hot desks at $250, dedicated desks at $450, private offices at $1,500, virtual office at $75, and meeting rooms at $120 can keep contribution margin, the cash left after direct costs, healthy.

5Payroll Ramp$35.6k/mo

Year 1 payroll lands near $35,625 a month, so confirm the staffing plan can support that load before you add headcount in the opening months.

6Launch OpsMonth 8

Make sure booking, access control, cleaning, internet, and community operations are ready before opening, and watch the Month 8 cash low of $1,000 so the rollout doesn't stall.