Gym Apparel Break-Even Analysis: $52K Monthly Revenue Target

Fixed costs $42.1K/mo Launch burn

Contribution margin 81.5% After variable costs

Break-even revenue $51.7K/mo Revenue target

Break-even timing Month 26 Model breakeven

Break-even calculator

Test monthly revenue against variable expenses and fixed costs to see when a gym apparel brand reaches break-even.

Lean Base Full

Monthly revenue Revenue is the pool that covers overhead after direct costs. $ Low sales High sales Variable expenses Use direct costs that rise with sales, like manufacturing, shipping, fulfillment, and card fees. $ Low costs High costs

Money available to cover fixed costs $77,500 $92,814 revenue - $15,314 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the overhead base for payroll, rent, software, and admin costs. $ Lean setup Scaled setup

Break-even chart Revenue Total costs

Which workout clothing expenses are fixed, and which move with sales?

Cost classification

Break-even is reliable only when product costs and order-linked fees sit below gross margin while rent, software, and planned headcount stay in overhead. Misclassifying inventory or CAC can move the Month 26 break-even.

Expense	Cost	Break-Even Treatment	Common Mistake
Raw Materials & Manufacturing	Variable	Apply as 8.0% of revenue in the first year, declining to 6.0% by the mature year.	Treating inventory purchases as overhead instead of matching product costs to the revenue they produce.
Inbound Shipping & Quality Control	Variable	Apply as 3.0% of revenue in the first year, then reduce with scale to 2.0% by the mature year.	Leaving inbound freight out of gross margin and overstating unit profit.
Fulfillment & Logistics	Variable	Apply as 5.0% of revenue in the first year, tied to orders shipped and sales volume.	Classifying pick, pack, and shipping support as fixed warehouse overhead.
Payment Processing Fees	Variable	Apply as 2.5% of revenue across the model period because fees rise with card sales.	Forgetting processor fees when testing contribution margin per order.
Marketing Spend	Semi-variable	Model the $150,000 first-year budget, then test customer acquisition cost at $45 per new customer.	Treating all marketing as fixed when customer acquisition cost moves with new buyers.
E-commerce Platform & Software	Fixed	Include $2,000 per month in overhead from Month 1 through Month 60.	Allocating platform software to each unit sold and muddying gross margin.
Website Hosting & Maintenance	Fixed	Include $400 per month in overhead for the relevant monthly planning range.	Assuming hosting rises with every order when the model shows a stable monthly amount.
Payroll	Semi-fixed	Model salaries by headcount steps, such as added operations, service, and inventory roles as the business scales.	Spreading payroll across units and missing the cash impact of each new hire.

How does break-even change from a lean launch to a full gym apparel rollout?

Scenario table

Lean is tight, base is the model’s break-even lane, and full has the best cushion because higher-margin mix offsets more overhead. EBITDA moves from -$293k in Year 1 to $462k in Year 3, so scale still drives the story.

Planning figures only; actual break-even will move with sell-through, returns, and ad costs.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$51.7k	$9.6k	$42.1k	81.5%	$0	Thin cushion; a small cost spike can slip it below break-even.
Base case	$71.6k	$11.9k	$59.8k	83.5%	$0	This is the model’s break-even lane and aligns with Month 26.
Full rollout	$84.2k	$12.2k	$72.0k	85.5%	$0	Best cushion here, but only if volume keeps pace.

What pushes this gym apparel plan below break-even?

Stress test

Year 1 only works if CAC stays near $45 and fulfillment stays under 50% of sales. A 10% revenue miss, 10% fixed-cost creep, or a 5-point margin slip can push the plan below break-even fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$517k	$0 cushion	Break-even is tight but stable.
Revenue shortfall	Revenue falls 10% from the plan.	$517k	$42k gap	A small sales miss wipes out the cushion.
Fixed-cost increase	Monthly fixed spend rises 10% to about $463k.	$559k	$42k gap	Overhead creep pushes the model off plan.
Margin pressure	Variable expenses rise from 18.5% to 23.5%.	$543k	$26k gap	Discounts, returns, and fulfillment fees cut contribution.
Combined pressure	Revenue falls 10%, fixed spend rises 10%, and variable expenses rise to 23.5%.	$624k	$107k gap	These pressures stack fast and move the plan well below break-even.

What should you verify before you lock in bulk inventory and ad spend?

Founder checklist

Don’t lock in bulk buys, payroll, or showroom space until Year 1 AOV, CAC, and margin all clear the model. Here’s the quick math: $71.40 AOV, $45 CAC, and 81.5% contribution only work if fixed burn stays near $29.6K a month and cash can cover the early gap.

1AOV check$71.40

Verify the first-year product mix and 1.2 units per order really hold this basket value, because lower order value makes every ad dollar harder to earn back.

2CAC test$45

At a $150K Year 1 marketing budget, keep CAC near $45 and confirm repeat buying starts fast enough, or paid growth will outrun cash.

3Margin guard81.5% CM

Keep raw materials, inbound shipping, fulfillment, and card fees at 18.5% of sales, because that 81.5% contribution pays the rest of the business.

4Staffing ramp3.5 FTE

Year 1 only supports 3.5 FTE, so verify the team can handle service, ops, and inventory flow before you add another salary or storage load.

5Cash buffer$388K

Hold the cash plan to the $388K low point around Month 25, and skip extra storage or showroom rent until sell-through proves the added load can clear.

6Bulk launchPre-bulk

Approve samples and check the minimum order quantity (MOQ) against the size curve before the first bulk run, because one bad fit cycle can trap cash in slow stock.