Gas Station Break-Even Analysis: $369K Monthly Revenue Target

Fixed costs $30.6K/mo Monthly overhead base

Contribution margin 83% After variable costs

Break-even revenue $36.9K/mo Revenue threshold

Break-even timing Month 4 First cover month

Break-even calculator

Test whether monthly revenue covers variable expenses and fixed monthly costs.

Lean Base Full

Monthly revenue Sales cash in before direct costs. $ Low sales High sales Variable expenses Direct costs that rise with sales, like fuel inventory, processing, and store stock. $ Low direct cost High direct cost

Money available to cover fixed costs $58,000 $70,000 revenue - $12,000 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the business pays even when sales are soft. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which gas station expenses are fixed, and which move with sales?

Cost classification

Month 4 break-even only holds if fuel purchases, in-store inventory, and card fees stay revenue-tied, while lease and core systems stay fixed. Mixing them makes the sales target look cleaner than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Property Lease Payment	Fixed	Use $8,000 per month in site overhead.	Spreading rent across gallons and hiding the monthly hurdle.
Utilities	Semi-variable	Start with $1,500 per month, then flex usage with traffic.	Treating power, water, and gas as fully fixed during peak volume.
Point-of-sale software subscription	Fixed	Use $300 per month as stable operating overhead.	Linking the subscription to transaction count without a stated driver.
Property Maintenance & Cleaning	Semi-fixed	Use $1,000 per month until traffic requires added service coverage.	Modeling cleaning as purely variable by visitor.
Staffing coverage	Semi-fixed	Include $18,917 per month for manager, assistant manager, cashiers, and food service coverage.	Calling payroll fixed when cashier and food coverage steps up with traffic.
Wholesale Fuel Cost	Variable	Apply 8.0% of sales in the first year.	Treating fuel purchases as fixed overhead instead of revenue-tied expense.
In-Store Inventory Cost	Variable	Apply 4.0% of sales in the first year.	Using one flat store expense instead of tying inventory to sales mix.
Payment Processing Fees	Variable	Apply 2.5% of sales in the first year.	Putting card fees in fixed overhead and overstating contribution margin.

How does break-even shift from a lean station to a full-volume station?

Scenario table

Higher traffic, better conversion, and a bigger basket lift revenue faster than fixed costs. That widens the cushion from lean to full, even though fixed costs also climb.

Planning assumptions only; repeat-customer layering is excluded here, so actual results can move with fuel prices, traffic, mix, and labor.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean case, Year 1	$696K	$118K	$306K	83%	$272K	Close to break-even, so small traffic drops matter.
Base case, Year 3	$1.32M	$211K	$345K	84%	$763K	Main planning case; revenue covers fixed costs with room left.
Full case, Year 5	$2.33M	$349K	$383K	85%	$1.60M	Strong cushion; break-even pressure is low at this scale.

What breaks first if fuel volume, card fees, or payroll move against this gas station?

Stress test

Year 1 starts with about $696K in monthly revenue against a $369K break-even point, so the plan has roughly a $327K cushion. The main risks are lower fuel volume, higher card fees, and payroll creep, because each one can close that cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$369K	$327K cushion	Healthy buffer, but traffic has to hold.
Revenue shortfall	Monthly revenue falls 50% to $348K.	$369K	$21K gap	The station slips below break-even on volume alone.
Fixed-cost pressure	Monthly fixed costs rise 10% to $337K.	$406K	$290K cushion	Payroll and overhead push break-even higher.
Margin pressure	Variable expenses rise from 17% to 20%, cutting contribution margin to 80%.	$383K	$313K cushion	Fee creep moves break-even up even without more sales.
Combined pressure	Revenue falls 50%, fixed costs rise 10%, and variable expenses rise to 20%.	$421K	$73K gap	Volume, fees, and payroll together erase the cushion.

What should you verify before you sign the lease and buy the pumps?

Founder checklist

Test the site against Year 1 traffic, margin, and cash needs before you commit. If daily visitors do not land in the 600 to 900 range and 65% conversion does not hold, the Month 4 break-even and $592K cash floor are too tight.

1Site Traffic390-585/day

Verify the location can support 600 to 900 daily visitors so 65% conversion still produces enough buyers to feed break-even.

2Fixed Load$11.7K/mo

Confirm the $8,000 lease plus utilities, insurance, POS, maintenance, and security still fit before payroll starts.

3Margin Mix83%

Lock fuel supply and card processing terms before launch, because 8% wholesale fuel cost, 2.5% processing, and 2.5% marketing leave about 83% before payroll.

4Staffing6 FTE

Make sure launch coverage works with 1 manager, 1 assistant manager, 3 cashiers, and 1 food service staff FTE as traffic builds.

5Launch Build$398K

Test pumps, underground tanks, POS hardware, cameras, refrigeration, and foodservice equipment before opening, because the full build sits near this capex total.

6Cash Buffer$592K

Keep enough reserve through Month 4, since minimum cash lands there and break-even also lands there, so a shortfall can hit before payback.