Game Store Break-Even Analysis: $187K Monthly Sales to Cover Costs

Fixed costs $15.1K/mo Monthly overhead base

Contribution margin 80.5% After variable costs

Break-even revenue $18.7K/mo Revenue to cover costs

Break-even timing Month 31 First positive month

Break-even calculator

Test whether monthly revenue covers variable expenses and fixed costs, and see how close the store is to break-even.

Lean Base Full

Monthly revenue Revenue is the cash coming in before direct costs and fixed overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise with sales, like inventory, fees, and promo. $ Lower costs Higher costs

Money available to cover fixed costs $15,300 $19,000 revenue - $3,700 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly costs the store must cover no matter what sells. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which store expenses are fixed and which move with sales?

Cost classification

Break-even lands in Month 31, so clean cost labels matter. Treat fixed overhead, sales-linked costs, and staffing steps separately or the model will overstate how fast traffic turns into profit.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Rent ($4,000/month)	Fixed	Include in monthly overhead across the planning range.	Mixing rent with leasehold improvements.
Store Manager salary ($55,000/year)	Fixed	Convert to monthly payroll burden for break-even.	Treating manager pay as variable per sale.
Retail Associate 2 (0.5 FTE in first year)	Semi-fixed	Change when staffing coverage steps up.	Ignoring added labor when hours expand.
Utilities ($500/month)	Semi-variable	Model a base bill with pressure from store hours.	Overfitting the forecast to one month.
Wholesale Inventory Cost (15.0% of sales in first year)	Variable	Deduct from revenue to calculate contribution margin.	Counting initial inventory stock twice.
Payment Processing Fees (1.0% of sales)	Variable	Move with card-based sales volume.	Burying processing fees in overhead.
Marketing & Promotion (2.5% of sales in first year)	Variable	Tie spend to the revenue plan.	Treating launch ads as recurring without review.
POS & Inventory Software ($150/month)	Fixed	Include as monthly software overhead.	Including POS hardware in this line.

How does break-even revenue change from a lean owner-run game store to a fuller staffed setup?

Scenario table

Lean staffing keeps fixed costs low, so break-even drops fast. Add launch and event coverage, and payroll lifts the monthly sales needed to cover the same store overhead.

Planning assumptions only; no new rent, salary, or city inputs were added.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean owner-operated test	$9,941	$1,939	$8,002	80.5%	$0	Lowest break-even, but owner coverage risk stays high.
Base launch staffing	$18,739	$3,654	$15,085	80.5%	$0	Matches launch staffing, but sales still need to clear a higher hurdle.
Full event-ready staffing	$20,194	$3,776	$16,418	81.3%	$0	Best for events and inventory scale, with the highest break-even load.

What pushes this game store below break-even?

Stress test

Year 1 break-even revenue is about $18,739 on $15,085 of fixed overhead and an 80.5% contribution margin. A 10% sales miss creates about a $1,509 gap, and a $1,000 rent hike or 5-point margin slip adds about $1,242 more strain.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$18,739	$0 gap	No cushion; small misses matter.
Revenue shortfall	Sales run 10% below the break-even target.	$18,739	$1,509 gap	Weak weekday traffic can erase profit fast.
Fixed-cost pressure	Store rent rises by $1,000 a month.	$19,981	$1,242 gap	Higher rent pushes the store farther from break-even.
Margin pressure	Variable expenses rise 5 points, cutting contribution margin to 75.5%.	$19,980	$1,241 gap	Markdowns, shrink, or payroll creep tighten the model.
Combined pressure	Rent rises by $1,000 and variable expenses rise 5 points.	$21,305	$2,566 gap	Traffic softness plus cost creep can break the plan.

Can this game store prove traffic, margin, and cash before you sign a long lease?

Founder checklist

Do not lock in the lease until weekday and weekend traffic, sales mix, and cash runway all match the model. The hard test is whether the store can reach Month 31 break-even without running past the $563K cash need.

1Traffic Test30/80/120/90

Verify Monday 30, Friday 80, Saturday 120, and Sunday 90 visitors, then test 18.0% buyer conversion before you commit.

2Lease Load$15.1K/mo

Check that rent and payroll stay near $15.1K a month, because that fixed base has to clear before inventory and promotion spend.

3Margin Mix80.5% CM

Keep the Year 1 mix near 45% video games, 30% board games, 20% hobby supplies, and 5% event entry so contribution margin stays around 80.5%.

4Staffing Coverage3.0 FTE

Verify the manager, two associates, and event coordinator can cover peak Friday to Sunday traffic at 3.0 FTE in Year 1.

5Cash Buffer$563K cash

Make sure you can hold the model's $563K minimum cash and still fund the $55K opening spend, because break-even lands in Month 31.

6Stock Plan$20K stock

Confirm suppliers can keep video games, board games, and hobby supplies flowing inside the $20K opening inventory, with shrink controls set before opening.