Knitting Supply Store Break-Even: About $178k Monthly Sales

Fixed costs $14.3K/mo Monthly base

Contribution margin 80.5% After variable costs

Break-even revenue $17.8K/mo Monthly target

Break-even timing Month 25 Ramp reaches here

Break-even calculator

Use this to test how monthly revenue, variable expenses, and fixed monthly costs set break-even for a knitting supply store.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Low sales High sales Variable expenses Use costs that rise with sales, like inventory and card fees. $ Low variable High variable

Money available to cover fixed costs $15,187 $18,750 revenue - $3,563 variable expenses

Margin ratio

81%

Covers fixed costs

$463 short

Fixed monthly costs This is the monthly cost base that break-even must cover. $ Low fixed High fixed

Break-even chart Revenue Total costs

Which knitting supply store expenses are fixed, variable, semi-variable, or semi-fixed at break-even?

Cost classification

Break-even is only useful if each expense moves the right way in the model. For this store, revenue reaches break-even in Month 25, so fixed rent, payroll steps, inventory, and card fees need separate treatment.

Expense	Cost	Break-Even Treatment	Common Mistake
Retail Space Rent	Fixed	Use $3,500 per month from Month 1 through Month 60.	Treating rent as flexible after signing.
Utilities and Internet	Semi-fixed	Use a $450 monthly baseline, then review if store hours expand.	Ignoring seasonal store hours.
Marketing and Social Media	Semi-fixed	Use $800 per month as demand support, not a sales percentage.	Cutting demand spend too early.
Wholesale Inventory Cost	Variable	Apply 15.0% of Year 1 sales, declining to 13.0% by Year 5.	Confusing inventory buys with gross margin.
Packaging and Merchant Fees	Variable	Apply 4.5% of Year 1 sales, then 4.0% from Year 3 onward.	Leaving card fees out of margin.
Store Owner Manager	Fixed	Include the $55,000 annual salary as recurring operating payroll.	Excluding owner pay from break-even.
Sales Associate	Semi-variable	Model staffing from 1.0 FTE in Year 1 to 3.0 FTE in Year 5.	Hiring ahead of traffic.
Workshop Instructor	Semi-variable	Model staffing from 0.5 FTE in Year 1 to 1.5 FTE in Year 5.	Adding classes before seats fill.

How does break-even shift from a lean yarn shop to a fuller-service class model?

Scenario table

Break-even moves mainly with traffic, product mix, and staffing. The lean case stays in the red, the base case cuts the gap, and the fuller-service case turns cash positive if class sales and repeat visits hold.

Planning cases only; actual results will move with foot traffic, basket mix, and staffing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean yarn-led store	$6.3k	$1.2k	$15.7k	80.5%	-$10.6k	Still well below break-even; demand needs to build.
Base mixed-store model	$18.8k	$3.6k	$17.5k	81.0%	-$2.3k	Close to break-even, but still short; repeat buyers matter.
Full class-and-kit model	$54.8k	$9.9k	$21.6k	82.0%	$23.3k	Above break-even with a real cushion if staffing stays tight.

What breaks the knitting shop’s break-even plan?

Stress test

Year 1 break-even is about $178,000 a month. If traffic runs 10% light, the store still faces about a $14,000 gap, and a 10% jump in fixed costs or a margin squeeze pushes break-even close to $190,000 to $196,000; both together reach about $209,000.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$178,000	$0 gap	At plan, fixed costs are covered.
Revenue shortfall	Sales run 10% below the break-even plan.	$178,000	$14,000 gap	Slower walk-in traffic opens a cash hole fast.
Fixed-cost rise	Fixed costs increase 10% to about $157,000 a month.	$196,000	$18,000 gap	Rent or payroll added too early pushes the hurdle up.
Margin squeeze	Variable costs rise and cut contribution margin.	$190,000	$12,000 gap	More discounting or freight eats the sale before it helps cash.
Combined pressure	Fixed costs rise 10% and margin stays under pressure.	$209,000	$31,000 gap	Slow traffic plus cost creep can break the plan.

Can this knitting supply store clear break-even before you sign the lease and buy opening stock?

Founder checklist

Test the demand, margin, staffing, and cash math before you lock a long lease or stock the shelves. The model only works if the store can carry fixed costs through Month 25 break-even.

1Demand proof41 buyers/wk

Verify local knitters can convert about 163 weekly visitors into buyers at the 25% rate, or Year 1 traffic will miss the break-even path.

2Lease load$5.4k/mo

Check that $3,500 rent and $5,400 of monthly fixed overhead before wages stay inside the store’s early cash flow, because this is the base load every month.

3Unit margin≈80.5% CM

Verify supplier terms hold near the 15% wholesale cost assumption plus 4.5% packaging and merchant fees, since that contribution funds rent and payroll.

4Staffing ramp$107k/yr

Only open with a payroll plan for the $55k owner manager, $32k sales associate, and 0.5 FTE instructor, or labor will outrun first-year demand.

5Cash runway$682k min

Keep enough cash to reach Month 25 break-even and absorb the slow start, because the model shows a $682k minimum cash need and a 38-month payback.

6Class mix20% by Y3

Build the class calendar only if workshop fees can rise from 10% in Year 1 to 20% by Year 3, since that mix shift helps the store scale.