Hypoallergenic Makeup Brand Break-Even: About $71K Monthly Revenue

Fixed costs $13.5K/mo Core monthly base

Contribution margin 62% After variable costs

Break-even revenue $70.8K/mo Cover overhead

Break-even timing Month 2 Early ramp

Break-even calculator

See how monthly revenue, variable expenses, and fixed monthly costs shape break-even for a hypoallergenic makeup line.

Lean Base Full

Monthly revenue Revenue is the cash in that must cover direct costs and overhead. $ Low sales High sales Variable expenses These are direct costs that rise with each sale, like fulfillment and processing. $ Light costs Heavy costs

Money available to cover fixed costs $233,787 $265,667 revenue - $31,880 variable expenses

Margin ratio

88%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business pays even if sales slow down. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or step up as sales grow for this sensitive-skin cosmetics line?

Cost classification

Classify costs before you trust the Month 2 break-even: fixed overhead sets the monthly hurdle, while variable and volume-linked costs reduce contribution margin. Keep the $160,000 capex plan in cash planning, not monthly contribution margin.

Expense	Cost	Break-Even Treatment	Common Mistake
HQ Office and Lab Lease	Fixed	Use $6,500 per month in fixed overhead for the full Month 1 to Month 60 planning range.	Treating rent as a per-unit charge and overstating margin pressure as volume grows.
Clinical Testing Retainer	Fixed	Use $3,000 per month as recurring fixed overhead, separate from batch-level testing items.	Moving the full retainer into unit COGS and making low-volume months look too weak.
E-commerce Platform and Processing	Variable	Apply 4.5% of first-year revenue, then use the modeled annual rates as sales scale.	Entering it as a flat software fee and overstating contribution margin on higher sales.
DTC Fulfillment and Shipping	Variable	Apply 9.0% of first-year revenue, declining to the modeled later-year rates as order volume improves.	Ignoring shipping as a sales-linked charge and setting break-even units too low.
Soothing Liquid Foundation Unit Inputs	Variable	Use $9.50 per unit from ingredients, labor, bottle, outer box, and inbound freight.	Using sales price as gross margin and forgetting the physical product inputs.
Warehouse Handling Fee	Semi-variable	Treat the 0.4% revenue-linked fee as volume-sensitive overhead tied to inventory movement.	Putting all warehouse activity in fixed overhead and missing the drag from higher throughput.
Storage Climate Control	Semi-variable	Model the 0.4% revenue-linked charge as overhead that rises with stored finished goods.	Assuming storage stays flat while production rises from 32,000 total units in the first year.
Customer Experience Lead Staffing	Semi-fixed	Step the salary base from 0.5 FTE in the first year to 1.0 FTE in the second year, then higher as support load grows.	Smoothing headcount as a percentage of revenue instead of modeling real hiring steps.

How does break-even shift across lean, base, and full launch plans for this makeup line?

Scenario table

The lean case sits right on the edge, the Year 1 base case already shows a small profit, and the full scale case widens the cushion. Fixed costs matter less as revenue rises, but higher staffing still keeps the hurdle real.

Planning cases only: these figures are model-based assumptions, not guaranteed sales or profit.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean proof launch	$58.9K	$22.1K	$36.8K	62.4%	$0.0K	This is the break-even line, so any shortfall turns into a loss.
Year 1 base case	$111.5K	$42.0K	$44.1K	62.4%	$25.4K	This is the normal launch case, with a modest cushion above break-even.
Year 3 scale case	$265.7K	$92.3K	$55.0K	65.3%	$118.4K	Scale improves the cushion, even with higher team and support costs.

What can push this sensitive-skin makeup launch past break-even?

Stress test

The base plan has room, but break-even gets tight fast if sales slip, fulfillment and packaging costs rise, or ad spend brings in low-repeat customers. A 25% revenue drop plus 5-point margin pressure and 10% higher fixed costs leaves only about a $6K gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$708K	$254K cushion	Healthy cushion, but higher fulfillment fees can still bite.
Revenue shortfall	Revenue falls 15% from plan.	$708K	$150K cushion	Sales still cover fixed costs, but launch spend room shrinks.
Fixed-cost increase	Fixed costs rise 10% to about $485K.	$777K	$210K cushion	Overhead moves break-even up fast and trims flexibility.
Margin pressure	Contribution margin falls 5 points from higher fulfillment and packaging costs.	$769K	$199K cushion	Fee pressure eats into each sale and weakens the buffer.
Combined pressure	Revenue drops 25%, margin falls 5 points, and fixed costs rise 10%.	$845K	$6K gap	Small misses across sales, cost, and overhead erase the cushion.

What should you verify before you lock in the lease, hires, and inventory for this hypoallergenic makeup business?

Founder checklist

Before you sign a lease or hire, make sure Year 1 sales, landed unit costs, and cash still support Month 2 break-even. The model only works if you can move 32,000 units in Year 1, keep variable costs near 15.2% of sales, and fund the $1.142M cash trough.

1Year 1 Volume32,000 units

Check supplier minimums against the Year 1 unit plan so you do not lock cash into stock you cannot turn before break-even.

2Landed COGS$9.50 to $4.75

Confirm quotes land at $9.50 for foundation, $6.20 for concealer, $7.25 for powder, $7.15 for primer, and $4.75 for blush, or margin will shrink before launch.

3Variable Load84.8% CM

Keep e-commerce processing near 4.5% to 3.5% and fulfillment near 9.0% to 7.0% of revenue so contribution stays around 84.8% and fixed overhead still fits.

4Fixed Burn$44.1K/mo

Add the $13.5K monthly overhead and the Year 1 salary plan, which runs about $30.6K a month, before you sign, because that burn has to fit the revenue ramp.

5Ops TimingMonth 13

Keep the operations coordinator start at Month 13 unless repeat buying is already stable, because early hiring eats the cushion before volume is proven.

6Cash Cushion$1.142M

Cover the Month 2 cash trough and the $160K capex stack for lab equipment, the website, tooling, office tech, CRM, inventory hardware, and software build before you scale inventory.