Lighting Store Break-Even Analysis: $24k Monthly Revenue Target

Fixed costs $19.4K Recurring overhead base

Contribution margin 82% After variable costs

Break-even revenue $23.8K Monthly target

Break-even timing Month 34 Model breakeven

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against the store's break-even point.

Lean Base Full

Monthly revenue Revenue drives the cash left to cover direct costs and overhead. $ Slow sales Strong sales Variable expenses Wholesale cost, shipping, fees, and commissions rise with sales. $ Lean costs Heavy costs

Money available to cover fixed costs $36,168 $44,000 revenue - $7,832 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs Rent, wages, utilities, and other monthly overhead sit here. $ Small team Large team

Break-even chart Revenue Total costs

Which lighting store expenses are fixed, variable, semi-variable, or semi-fixed for break-even?

Cost classification

The model reaches break-even in Month 34 only if fixed overhead, percentage costs, and step payroll are kept separate. Bad labels make the required monthly sales target look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease	Fixed	Use $5,000 per month as base overhead from Month 1 through Month 60.	Spreading rent across units and treating it like it falls when sales fall.
Utilities	Semi-variable	Start with the $800 monthly planning amount, then test higher usage as showroom traffic grows.	Leaving power usage flat while visitor volume rises from first year to mature year.
Wholesale Product Cost	Variable	Apply 13.0% of first-year revenue as product cost, improving to 11.0% by the fifth year.	Typing 130% instead of 13.0%, which destroys gross margin math.
Inbound Shipping & Handling	Variable	Apply 1.0% of first-year revenue as freight-related cost, declining to 0.8% by the fourth year.	Ignoring freight and overstating contribution margin on fixtures and trade orders.
Payment Processing Fees	Variable	Apply 2.5% of first-year revenue, stepping down to 2.0% by the fifth year.	Modeling card fees as a fixed software bill instead of a sales-linked charge.
Sales Commissions	Variable	Apply 2.0% of revenue across all forecast years before calculating contribution margin.	Counting commissions in payroll and then also as a sales percentage.
Senior Sales Consultant Payroll	Semi-fixed	Model salary in staffing steps: 1.0 FTE first year, 1.5 FTE second year, and 2.0 FTE from third year.	Treating payroll as fully variable when it rises in hiring blocks.
Administrative Assistant Payroll	Semi-fixed	Use $35,000 annual salary at 0.5 FTE in the first two years, then 1.0 FTE from the third year.	Adding support staff too early without tying the step to store workload.

How does break-even change across a lean showroom, the base store, and a full-service lighting showroom?

Scenario table

A lean storefront with lower payroll breaks even lower, the base showroom sits near the $238k annual line, and a full-service trade-heavy setup pushes break-even to about $378k. This is operating break-even, not the Month 34 cash break-even.

Planning figures only; actual results will move with traffic, mix, staffing, and inventory turns.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean lighting store	$17.0k	$3.1k	$13.9k	81.5%	$0	Lower payroll and a tighter range keep break-even below the base case.
Base lighting showroom	$19.8k	$3.7k	$16.2k	81.5%	$0	Base operating break-even sits near the $238k annual line.
Full-service trade-heavy showroom	$31.5k	$5.4k	$26.1k	82.8%	$0	Broader inventory and more trade orders push break-even to about $378k.

What pushes the lighting store’s break-even point higher?

Stress test

The base break-even is about $238k a year on $194k of fixed costs and an 81.5% contribution margin. Slow walk-ins, freight, markdowns, and extra payroll before repeat demand are the main ways this gets worse.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in fixed costs or margin.	$238k	$0 gap	Base target, no cushion yet.
Revenue shortfall	Year 1 traffic stays at the launch pace.	$238k	$177k gap	Early demand misses leave little room for error.
Fixed-cost pressure	Annual fixed costs rise by $50k.	$299k	$61k gap	Payroll or overhead creep lifts the bar fast.
Margin pressure	Variable expenses rise from 18.5% to 22.5% of sales.	$250k	$12k gap	Freight, markdowns, or commissions erode margin.
Combined pressure	Fixed costs rise $50k and variable expenses rise to 22.5%.	$315k	$77k gap	Traffic misses plus cost creep can break the model.

What should a lighting store founder verify before signing the lease and buying the first inventory order?

Founder checklist

Treat the opening as a test of fixed cost, traffic, and mix, not just a store launch. If the lease, payroll, and inventory plan can’t hold near Month 34 break-even and Month 53 payback, the commitment is too early.

1Lease load$7.1K/mo

Verify the $5,000 rent and other recurring overhead so fixed cost stays near $7.1K a month, because that is the floor the store must cover.

2Traffic proof24 buyers/wk

Use the Year 1 traffic plan of 300 visitors a week, or about 43 a day, and confirm 8.0% conversion holds, because that buyer count feeds break-even.

3Mix check30/25/15/15/15

Hold the sales mix near chandeliers, LED bulbs, smart lighting, sconces, and trade orders, because a shift toward lower-ticket items cuts revenue per visit.

4Payroll fit$12.3K/mo

Verify Year 1 sales can carry about $12.3K in monthly payroll before you add more staff, since the later FTE ramp pushes labor higher.

5Vendor terms$30K stock

Secure vendor terms before the first $30,000 inventory buy, because cash tied up in stock before sell-through is the fastest way to miss break-even.

6Cash cushionMonth 34 / Month 53

Keep enough cash for the $360K minimum, because break-even lands around Month 34 and payback around Month 53, so the store needs a long runway.