Kitchen Design Studio Break-Even Analysis: ~$26k/Month

Fixed costs $19.7K/mo Base overhead + payroll

Contribution margin 76% After variable spend

Break-even revenue $25.9K/mo Monthly revenue target

Break-even timing Month 4 Model break-even point

Break-even calculator

Use this calculator to test monthly revenue against variable expenses and fixed monthly costs, then see where the studio crosses break-even.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Slow month Peak month Variable expenses These are direct costs that rise with each project and job. $ Low costs High costs

Money available to cover fixed costs $51,500 $61,300 revenue - $9,800 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Lean setup Scaled team

Break-even chart Revenue Total costs

Which kitchen design studio expenses stay fixed and which move with sales?

Cost classification

Break-even gets unreliable when launch cash, fixed overhead, and project-linked costs are mixed together. Treat recurring monthly overhead as fixed, and apply percentage-based project costs only as sales volume rises.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio/showroom rent	Fixed	Include $3,500 per month in base overhead from Month 1 through Month 60.	Spreading showroom build-out into rent and overstating monthly overhead.
Utilities	Fixed	Include $500 per month for the relevant monthly planning range.	Treating small utility changes as sales-driven project expense.
Base design software subscriptions	Fixed	Include $400 per month as required platform overhead.	Mixing base subscriptions with project-specific software charges.
Accounting and legal fees	Fixed	Include $600 per month in recurring operating overhead.	Removing it from break-even because it is not tied to client delivery.
Project-specific design software licenses	Variable	Apply 3.0% of revenue in the first year, declining to 2.0% by the mature year.	Booking it as fixed software overhead instead of project-linked usage.
Third-party visualization and rendering	Variable	Apply 5.0% of revenue in the first year, declining to 4.0% by the mature year.	Ignoring rendering load when project count increases.
Digital ad spend and lead generation	Variable	Apply 12.0% of revenue in the first year, declining to 8.0% by the mature year.	Using only the annual marketing budget and missing volume-linked acquisition spend.
Junior Kitchen Designer pay	Semi-fixed	Add in staffing steps as capacity grows, starting after launch at 0.5 FTE and rising later.	Treating designer payroll as fully variable with each new project.

How much revenue does each kitchen design staffing setup need to break even?

Scenario table

Lean launch breaks even at about $25.9k a month, base studio at $29.1k, and fuller staffing at $38.3k. As payroll and support rise, the studio needs more signed work to stay above water.

Planning figures only; actual break-even moves with project mix, revisions, and close rates.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean kitchen design studio	$25,855	$6,205	$19,650	76.0%	$0	About 4 signed projects keep it at break-even; any dip in close rate creates cash strain.
Base studio with junior designer	$29,145	$6,995	$22,150	76.0%	$0	Still about 4 signed projects, but the extra designer raises the monthly load.
Full staffed studio	$38,253	$8,186	$30,067	78.6%	$0	About 5 signed projects cover the larger team; revision control matters more.

What breaks the break-even plan for a kitchen design studio?

Stress test

The base plan clears break-even at $29,145 in monthly revenue, with $22,150 fixed costs and a 76% contribution margin. The weak spots are slower signed-project flow, higher ad spend, and rent or payroll increases before demand is proven.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$29,145	$0 gap	No cushion, so a small miss matters.
Revenue slip	Project revenue falls 10% to $26,231.	$29,145	$2,215 gap	Fewer signed projects create a monthly hole.
Fixed-cost rise	Fixed overhead rises 10% to $24,365.	$32,059	$2,215 gap	Rent or payroll creep pushes the plan off track.
Margin pressure	Variable expenses rise from 24% to 29%.	$31,197	$1,466 gap	Higher ad spend or unpaid revisions cut margin fast.
Combined pressure	Revenue falls 10%, variable expenses rise to 29%, and fixed overhead rises 10%.	$34,317	$5,741 gap	Slower lead flow and higher costs open a wide gap.

What should you verify before you sign the lease and add payroll for a kitchen design studio?

Founder checklist

Don’t sign the lease or add payroll until you can point to four signed projects a month, a 76% contribution margin, and cash to survive the Month 2 low point. That’s the line between a workable studio and a slow cash leak.

1Signed projects4/mo

Verify the pipeline already shows four signed projects a month, because that is the level the Year 1 cost base needs to feel real.

2Fixed load$22.2K/mo

Year 1 fixed load is about $22.2K a month: $5.9K in fixed overhead plus $16.25K in wages, so the $3,500 rent only works if demand is already there.

3Margin test76% CM

Contribution margin means revenue left after variable costs; keep revision limits tight, because the 76% margin test only works if consultation, procurement, and project-management hours stay billable.

4Staff rampMonth 7

Verify the current team can handle 25 consultation hours, 8 procurement hours on 70% of clients, and 30 project-management hours on 60% of clients before the Month 7 junior hire, or unpaid work will hide the real load.

5Cash cushion$827K

Minimum cash falls to $827K in Month 2, so make sure the build-out, sample library, furniture, equipment, and workstations won't drain the reserve before the studio starts paying back.

6Lead flow$1K CAC

Year 1 CAC is $1,000 against a $20,000 marketing budget, so prove paid lead flow first; a strong showroom is not a fix for a weak funnel.