Sneaker Resale Store Break-Even: About $28K Monthly Revenue

Fixed costs $24.4K/mo Core monthly overhead

Contribution margin 87.5% After variable costs

Break-even revenue $27.8K Monthly revenue target

Break-even timing Month 35 First profitable month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against the break-even point for a sneaker resale store.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before direct costs. $ Slow month Strong month Variable expenses These rise with sales, like authentication, processing, marketing, and shipping. $ Low costs High costs

Money available to cover fixed costs $40,950 $45,000 revenue - $4,050 variable expenses

Margin ratio

91%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly costs your margin must cover, even if sales slow down. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which sneaker resale store expenses are fixed, and which move with sales?

Cost classification

Break-even only works if each expense follows its real behavior. Treat monthly overhead as fixed, sale-linked fees as variable, and staffing as capacity-based so the Month 35 break-even target isn’t distorted.

Expense	Cost	Break-Even Treatment	Common Mistake
Retail Store Rent	Fixed	Load $6,000 per month into fixed overhead from Month 1 through Month 60.	Spreading rent across each sale and making margins look too low.
Utilities	Semi-variable	Start with the $800 monthly base, then allow usage to rise as store traffic and operating hours grow.	Treating the full bill as fixed when higher foot traffic can raise electricity, water, and internet usage.
Business Insurance	Fixed	Include $400 per month in fixed overhead for the planning range.	Linking insurance to unit sales instead of carrying it as a store-level monthly obligation.
POS & Inventory Software Subscriptions	Fixed	Include $250 per month as fixed operating overhead.	Forgetting subscription tools in break-even and understating monthly overhead.
Store Staffing	Semi-fixed	Model salaries in steps as full-time equivalent staffing rises for sales, authentication, marketing, and support roles.	Making payroll fully variable even though headcount changes in blocks, not one sale at a time.
Authentication Costs per Sale	Variable	Apply the sale-linked rate to revenue, starting at 2.0% in the first year and declining to 1.0% by the mature year.	Putting authentication into fixed overhead and missing the margin hit from each sale.
Payment Processing Fees	Variable	Apply the processing rate to sales, from 2.5% in the first year to 2.0% in the mature year.	Ignoring card fees when calculating contribution margin.
Special Packaging & Shipping	Variable	Apply the sale-linked rate, starting at 3.0% in the first year and falling to 2.0% in the mature year.	Treating packaging and shipping like fixed overhead instead of order-driven spend.

How does break-even change from a lean to a full sneaker resale store?

Scenario table

The lean setup breaks even at the lowest dollar volume, but it has the tightest cushion. The base and full setups need more monthly sales, yet they can absorb more traffic if sell-through and staffing stay on track.

Planning figures only; actual break-even shifts with traffic, conversion, and staffing mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch store	$27,829	$3,479	$24,350	87.5%	$0	Lowest sales hurdle, but the cushion is thin.
Base growth store	$35,042	$3,609	$31,433	89.7%	$0	Needs steadier volume, but it scales better if sell-through holds.
Full-scale store	$40,960	$3,277	$37,683	92.0%	$0	Highest fixed load, so it only works with strong traffic and repeat buyers.

What pushes the break-even point out for a sneaker resale store?

Stress test

Year 1 needs about $27,829 in monthly revenue to break even, but the plan starts near $9,013. Weak weekend traffic, fee creep, and higher rent or staffing widen the gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$27,829	$18,815 gap	Year 1 sales sit well below break-even.
Revenue shortfall	Weekend traffic falls 10% across Saturday and Sunday.	$27,829	$19,221 gap	Weak weekend traffic leaves less cash to absorb fixed costs.
Fixed cost	Monthly overhead rises by $1,000.	$28,971	$19,958 gap	Every extra $1,000 of overhead needs about $1,143 more sales.
Margin pressure	Variable expenses rise 1 point of sales.	$28,145	$19,131 gap	Fee creep and discounting cut the cushion fast.
Combined pressure	Weekend traffic falls 10% and monthly overhead rises by $1,000.	$28,971	$20,364 gap	Lower sales and higher overhead push cash burn up.

Can you carry the lease, staffing, and cash burn long enough to reach Month 35 break-even?

Founder checklist

Before you sign the lease or buy deep inventory, make sure the store can survive the ramp to Month 35 break-even. The model needs about $24,350 of Year 1 fixed monthly overhead covered, plus a $128K cash cushion in Month 36.

1Lease load$6K/mo

Confirm rent stays at $6,000 a month, because any higher lease cuts the margin that has to carry the store to break-even.

2Overhead cover$24.35K/mo

Verify Year 1 fixed monthly overhead is covered at this level, since rent, wages, utilities, software, and security all hit before steady profit does.

3Launch traffic69 orders/mo

At 400 weekly visitors and a 4.0% visitor-to-buyer rate, you get about 69 orders a month, so test real launch demand before deeper inventory buys.

4Mix margin87.5% CM

Track the 70% direct markup, 20% consignment fee, and 10% sourcing fee mix against 12.5% variable costs, because that margin must fund the fixed load.

5Core staff3.5 FTE

Stage the manager, lead authenticator, sales associate, and marketing help, because Year 1 staffing already totals 3.5 full-time equivalents before support staff starts in Month 13.

6Cash runway$128K

Plan for the $122K launch setup spend and hold cash for the $288K Year 1 EBITDA loss, because minimum cash falls to $128K in Month 36.