Home Decor Store Break-Even Revenue: About $28K/Month

Fixed costs $24.2K/mo Base overhead

Contribution margin 56% After variable costs

Break-even revenue $43.0K/mo Revenue target

Break-even timing Month 37 Model breakeven

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even.

Lean Base Full

Monthly revenue Revenue sets the pool that covers variable costs and fixed costs each month. $ Low sales High sales Variable expenses These are direct costs that rise with each sale, like product cost and sales fees. $ Tight costs Loose costs

Money available to cover fixed costs $29,000 $65,000 revenue - $36,000 variable expenses

Margin ratio

45%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead that contribution margin has to cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with sales in this home decor store?

Cost classification

Break-even only works if each expense follows the right sales driver. Treat rent and base payroll as fixed, but keep inventory, transaction fees, and campaign spend tied to revenue or unit volume.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Lease	Fixed	Use $4,500 per month from Month 1 through Month 60.	Spreading rent across units and hiding the monthly hurdle.
Fixed Base Payroll	Semi-fixed	Use $18,750 per month in the first year, then step up with the staffing plan.	Modeling all payroll as variable when headcount changes in planned jumps.
Cost of Goods - Furniture	Variable	Apply 8.0% of related sales in the first year, falling to 6.0% by the fifth year.	Treating inventory purchases like fixed overhead instead of sales-linked expense.
Cost of Goods - Accessories & Textiles	Variable	Apply 6.0% of related sales in the first year, falling to 4.0% by the fifth year.	Using one blended margin and missing product mix shifts.
E-commerce Transaction Fees	Variable	Apply 2.0% of sales in the first year, easing to 1.6% by the fifth year.	Leaving fees out of contribution margin.
Marketing Campaign Spend	Variable	Apply 3.0% of sales in the first year, easing to 2.2% by the fifth year.	Calling campaign spend fixed when it scales with revenue.
Utilities	Semi-variable	Start with the $400 monthly base and watch usage as store hours and traffic grow.	Keeping utilities flat even when operating volume rises.
Software Subscriptions	Fixed	Use $430 per month for POS e-commerce, CRM, and data analytics software.	Mixing monthly software with transaction fees.

How does break-even change across a lean, base, and full home decor store setup?

Scenario table

Lean traffic stays below break-even. The base case crosses it, and the full showroom widens the cushion because higher conversion and a richer product mix lift contribution faster than fixed payroll.

Planning view only; these figures use model assumptions, not a sales guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean showroom	$19.2k	$2.3k	$24.6k	88.0%	-$7.7k	Still below break-even, so overhead needs more traffic.
Base showroom	$67.8k	$7.1k	$31.7k	89.5%	$28.9k	Covers fixed costs and leaves a modest cushion.
Full showroom	$161.2k	$14.6k	$34.6k	91.0%	$112.0k	Strong cushion, so break-even risk drops hard.

What breaks the break-even plan for a home decor store?

Stress test

Year 1 is short of break-even, and the pressure points are weak weekday traffic, higher Year 3 payroll, and a 120% Year 1 variable-cost load. If those stack together, break-even revenue can jump from about $280,000 to about $360,000 a month.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$280,000	$0 cushion	No cushion if sales slip.
Revenue shortfall	Year 1 sales stay near $225,000 a month.	$280,000	$54,000 gap	Weak weekday traffic and 4.0% conversion keep sales below cover.
Fixed-cost pressure	Year 3 staffing lifts fixed costs to about $317,000 a month.	$317,000	$92,000 gap	More payroll raises the monthly sales needed to stay even.
Margin pressure	Year 1 variable costs stay at 120% of sales.	$360,000	$135,000 gap	Markdowns, freight, and slow stock can wipe out margin.
Combined pressure	Year 1 sales, Year 3 staffing, and Year 1 margin all hit at once.	$360,000	$135,000 gap	This is the worst case and leaves little room for traffic misses.

Can this store carry rent, payroll, and inventory before you sign the lease?

Founder checklist

Check the lease, staffing, and inventory plan against the first-year traffic model before you commit. With 660 weekly visitors, 4.0% conversion, $24.6K monthly fixed load, and $126K capex, the store needs tight execution to hold until Month 37 break-even.

1Traffic proof660/wk

Verify the opening site can draw 660 weekly visitors and convert at 4.0%, because that is the base demand the break-even plan assumes.

2Rent load$24.6K/mo

Keep the lease at $4,500 a month and total fixed costs near $24.6K a month before benefits and taxes, or Month 37 break-even slips.

3Margin check88% CM

Check that the blended contribution margin stays near 88% after 8% and 6% goods cost plus 2.0% transaction fees and 3.0% marketing spend.

4Staffing ramp4.0 FTE

Open with 4.0 FTE and be ready to lift the sales associate to 1.5 FTE in Year 2, because Friday and Saturday traffic needs floor coverage.

5Cash cushion$109K

Hold at least $109K in cash so the business can absorb the Year 1 EBITDA loss of -$278K and last through Month 37 break-even.

6Launch mix$126K capex

Fund the $126K launch package and stock the five-item mix from day one, or the build-out, fixtures, signage, hardware, website, and delivery van won't turn traffic into sales.