Facility Maintenance Supplies Break-Even Analysis: $62K Monthly Sales

Fixed costs $45.8K/mo Base overhead

Contribution margin 80.5% After variable costs

Break-even revenue $56.9K/mo Revenue target

Break-even timing Month 25 Model crosses here

Break-even calculator

Test whether monthly sales can cover direct costs and the fixed cost base before the business reaches break-even.

Lean Base Full

Monthly revenue Revenue is the top line that funds direct costs and overhead. $ Low sales High sales Variable expenses Use direct costs that rise with sales, like procurement, freight, and processing. $ Low costs High costs

Money available to cover fixed costs $206,250 $250,000 revenue - $43,750 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base contribution margin has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a facility maintenance supplies business?

Cost classification

Break-even is only useful if warehouse overhead, payroll, freight, and inventory charges sit in the right buckets. Misclassify a volume-based expense as fixed, and Month 25 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse Rent	Fixed	Use $5,000/month as overhead covered by contribution margin.	Treating rent as tied to order count.
Platform Hosting & Software	Fixed	Use $1,500/month as monthly overhead, not per order.	Spreading it as a variable fee on every sale.
Utilities & Internet	Semi-variable	Model $900/month as overhead, then watch usage as warehouse activity grows.	Assuming every dollar moves directly with sales.
Business Insurance	Fixed	Use $600/month as stable operating overhead.	Putting insurance into unit margin instead of fixed burn.
Product Procurement Cost	Variable	Apply 12.0% of revenue in the first year, improving to 10.0% by the mature year.	Mixing monthly procurement with $50,000 initial inventory stock.
Inbound Logistics	Variable	Apply 2.0% of revenue in the first year, falling to 1.2% by the mature year.	Ignoring freight pressure when calculating contribution margin.
Payment Processing Fees	Variable	Apply 2.5% of revenue in the first year, improving to 2.1% by the mature year.	Treating card fees as fixed software spend.
Base Payroll	Semi-fixed	Use about $35,000/month in the first year, then step it up as headcount grows.	Modeling payroll as a smooth percent of sales.

How does break-even change from a lean launch to a full B2B supply operation?

Scenario table

Break-even climbs as the model adds warehouse staff, marketing, and support overhead. The lean launch clears at about $621k in monthly sales, while the full setup needs about $1.76M.

Planning assumptions only; actual break-even will move with product mix, shipping, and hiring pace.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$621k	$121k	$500k	80.5%	$0	High risk until repeat orders fill the warehouse.
Base stocked warehouse case	$802k	$148k	$654k	81.5%	$0	Closest to a workable steady state if repeat orders hold.
Full B2B supply operation	$1.76M	$273k	$1.49M	84.5%	$0	Only works with dense repeat buying and tight payroll timing.

What breaks the break-even plan for facility maintenance supplies?

Stress test

This plan only works if sales hit schedule and costs stay tight. Slow contract conversion, freight surcharges, supplier price hikes, and early hiring before order density proves out are the warning signs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$621,000	$0 gap	Zero cushion; execution has to land on time.
Revenue shortfall	Monthly sales come in 10% below break-even at about $559,000.	$621,000	$50,000 gap	A small miss turns the month into an operating loss.
Fixed-cost increase	Monthly fixed costs rise 10% to $550,000.	$683,000	$62,000 gap	More overhead needs more sales just to hold even.
Margin pressure	Variable expenses rise from 19.5% to 22.5% of sales.	$645,000	$24,000 gap	Freight and supplier inflation eat most of the cushion.
Combined pressure	Sales slip to $559,000, variable expenses rise to 22.5%, and fixed costs reach $550,000.	$710,000	$117,000 gap	Slow sales plus higher costs can flip the month into a six-figure loss.

What should the founder verify before signing the warehouse lease and launch inventory orders?

Founder checklist

Don’t sign the warehouse lease or place launch stock orders until demand is signed or late-stage commercial accounts, supplier minimums are clear, and the cash plan can survive the Month 25 trough. The model reaches breakeven in Month 25, but it still hits a $247,000 cash low first.

1Demand ProofSigned

Verify signed or late-stage commercial demand before the lease, because $5,000 monthly rent starts on day one and weak early volume makes breakeven harder.

2Fixed Load$45.8K/mo

Check that the Year 1 fixed load of about $45.8K a month, including $35K payroll and $10.8K other fixed costs, is covered by the sales pipeline.

3Inventory MOQ$50K stock

Confirm supplier minimums before buying the $50,000 opening inventory, because cash tied up in slow-moving stock can block the rest of the launch.

4Order Economics$90.63 AOV

Test whether Year 1 average order value of $90.63, based on 2.5 units at a $36.25 blended unit price, can absorb 19.5% variable cost and still leave 80.5% contribution margin, the cash left after variable costs.

5Staffing Ramp5 FTE

Keep the first-year team at five FTE until order volume proves the need, because support starts in Month 13 and analytics in Month 25.

6Cash Cushion-$247K

Hold enough cash to reach the Month 25 trough and 38-month payback, because the model dips to negative $247K before recovery; if repeat orders lag, delay noncritical spend.