Medical Supply Store Break-Even Analysis: $235K Monthly Sales

Fixed costs $4.2K/mo Core fixed base

Contribution margin 81.5% After variable costs

Break-even revenue $23.5K/mo Revenue target

Break-even timing Month 27 Model break point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against the break-even point for a medical supply store.

Lean Base Full

Monthly revenue This is the sales line that covers your monthly margin after direct costs. $ Low sales High sales Variable expenses Use this for inventory buys, shipping, commissions, and card fees that rise with sales. $ Low costs High costs

Money available to cover fixed costs $20,300 $25,000 revenue - $4,700 variable expenses

Margin ratio

81%

Covers fixed costs

$1,200 short

Fixed monthly costs Use this for rent, payroll, software, insurance, and other monthly overhead. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which medical supply store expenses are fixed, and which move with sales?

Cost classification

Break-even lands in Month 27 only if overhead and sales-linked costs are split cleanly. Keep fixed monthly charges separate from inventory, freight, commissions, and processing fees so each sale carries the right contribution.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Rent	Fixed	Use $3,500 per month in fixed overhead from Month 1 through Month 60.	Treating rent as a percentage of sales.
Utilities (Electricity, Water, Gas)	Semi-variable	Start with the $400 monthly budget, then flex the usage portion as store traffic rises.	Holding the full amount flat when hours expand.
Cost of Inventory Purchased	Variable	Apply 12.0% of sales in the first year, declining to 10.0% by the mature year.	Double counting inventory as opening stock and a percent of sales.
Inbound Shipping & Handling	Variable	Apply 2.0% of sales in the first year, declining to 1.5% by the mature year.	Burying freight in fixed overhead.
Sales Commissions	Variable	Apply 3.0% of sales in the first year, declining to 2.5% by the mature year.	Counting commissions in both payroll and variable expense.
Payment Processing Fees	Variable	Apply 1.5% of sales in the first year, then 1.2% by the mature year.	Modeling card fees as a flat bank charge.
Payroll	Semi-fixed	Add salary by full-time equivalent; staffing rises from 3.5 FTE in the first year to 7.0 FTE by the mature year.	Treating all labor as variable per sale.
Marketing Retainers & SEO	Semi-fixed	Keep the $500 monthly retainer until the plan adds another spend tier.	Assuming every marketing dollar changes with each order.

How does break-even move across lean, base, and full store setups?

Scenario table

As staffing rises, fixed cost climbs faster than the margin gain, so break-even revenue moves up from about $23.5k to about $30.0k a month. Rent stays at $3,500 because no alternate rent case was provided.

Planning assumptions only; actual break-even will move with traffic, mix, and staffing hours.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean storefront case	$23,472	$4,342	$19,130	81.5%	$0	Lowest hurdle, but one soft week can hurt fast.
Standard store case	$25,016	$4,428	$20,588	82.3%	$0	Middle case; Year 2 traffic needs to hold steady.
Higher-traffic store case	$29,990	$5,068	$24,922	83.1%	$0	Highest hurdle, so it needs stronger walk-in volume.

What breaks the break-even plan for a medical supply store?

Stress test

The base plan only clears break-even at about $23,472 a month, so this store has little room for a soft launch. Slower foot traffic, freight inflation, discounting, or supplier price pressure can push it into a cash gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in price, mix, or cost rates.	$23,472	$0 gap	A small miss turns EBITDA negative.
Revenue shortfall	Revenue lands 10% below break-even at $21,125.	$23,472	$1,914 gap	Slower foot traffic leaves a monthly hole.
Fixed-cost increase	Monthly fixed costs rise 10% to $21,043.	$25,820	$2,348 gap	Higher rent and staffing need more sales.
Margin pressure	Variable expenses rise from 18.5% to 23.5% of sales.	$25,007	$1,535 gap	Freight and supplier price pressure squeeze margin.
Combined pressure	Revenue is 10% below plan and variable expenses rise to 23.5%.	$26,006	$4,881 gap	Traffic softness and cost inflation can erase the cushion.

Can this medical supply store clear break-even before you commit to the lease and opening inventory?

Founder checklist

This store is ready only if first-year traffic, pricing, and payroll can cover about $23.5K in monthly break-even revenue before you sign the lease or buy opening stock. At 250 weekly visitors and 8% conversion, the model still needs tight control on mix, reorders, and cash.

1Traffic Target250/wk

Verify weekly visitor flow can start near 250 and hold 8% conversion, because that is the demand base behind the break-even test.

2Payroll Load$13.8K/mo

Confirm $3,500 rent and the $13,750 monthly Year 1 wage load still fit under the fixed-cost cap, or break-even moves out of reach.

3Margin Stack81.5% CM

Check that contribution margin, meaning sales left after variable costs, stays near 81.5% after inventory, inbound freight, commissions, and card fees.

4Opening Mix40/30/20/10

Build the opening assortment around the Year 1 mix of 40% first aid, 30% monitors, 20% wheelchairs, and 10% gloves so cash lands in the right stock.

5Reorder Rhythm25% repeat

Set reorder points before launch, because repeat customers are 25% of new buyers in Year 1 and stockouts will choke the return flow.

6Cash Buffer$459K floor

Hold cash for the $107,000 planned capex and the $459,000 minimum cash trough in Month 29, since EBITDA is still negative early on.