Metered Dose Inhaler Supplies Break-Even: About $112K/Month

Fixed costs $88.3K Monthly overhead base

Contribution margin 86% After variable costs

Break-even revenue $102.7K Monthly revenue target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where break-even lands.

Lean Base Full

Monthly revenue Top line sets the margin pool available to cover overhead. $ Low sales High sales Variable expenses Direct costs move with output, shipping, and compliance activity. $ Low direct High direct

Money available to cover fixed costs $4,077,417 $5,043,333 revenue - $965,917 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even has to absorb. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in an inhaler and spacer supply break-even model?

Cost classification

Break-even is only useful if inventory-driven outlays move with units and recurring overhead stays fixed. With first-year revenue at $20.3 million and break-even in Month 1, bad labels can overstate safety fast.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse lease at $12,000/month	Fixed	Include as recurring monthly overhead across the planning range.	Allocating it per unit and hiding true monthly cash burn.
ISO 13485 audit fees at $2,500/month	Fixed	Treat as fixed compliance overhead for the medical device quality standard.	Dropping it below gross margin as if it changes with sales.
Insurance liability at $4,000/month	Fixed	Carry as fixed operating overhead from Month 1 through Month 60.	Scaling it with revenue without a stated usage driver.
Operations Specialist salaries	Semi-fixed	Step payroll up as full-time equivalent staffing rises from 1.0 in the first year to 5.0 in the fifth year.	Modeling all payroll as fixed even when headcount expands with volume.
Unit materials, assembly labor, and primary packaging	Variable	Run through cost of goods sold by unit, from $3.20 per valved spacer to $8.40 per combo inhaler.	Treating bulk inventory buys as fixed overhead instead of inventory flowing through cost of goods sold.
Revenue-based production charges	Variable	Apply the 7.0% total for quality control testing, sterilization, regulatory compliance, inventory insurance, waste, and scrap.	Missing the full 7.0% because the charges sit in separate lines.
Sales commissions	Variable	Apply to revenue, starting at 4.0% in the first year and declining to 2.5% by the fifth year.	Using the lower mature rate too early and overstating contribution margin.
Fulfillment labor or overflow storage tied to order volume	Semi-variable	Separate the base coverage from usage-linked handling or storage charges as orders rise.	Putting every warehouse-related dollar into the fixed lease line.

How does break-even change across lean, base, and full operating setups for inhalers and spacers?

Scenario table

Higher volume spreads warehouse, audit, and staff costs across more revenue, so break-even stays covered even as overhead rises. The full setup still works, but the cushion is tighter if volume comes in below forecast.

These figures are planning assumptions, not guarantees of demand, pricing, or margin.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 mix	$1.69M	$0.36M	$88.3k	79.0%	$1.25M	About $112k break-even revenue leaves a wide cushion.
Base Year 3 mix	$5.04M	$0.97M	$108.8k	80.8%	$3.97M	About $135k break-even revenue still sits far below sales.
Full Year 5 mix	$10.64M	$1.93M	$138.8k	81.8%	$8.57M	About $170k break-even revenue rises, but scale still covers it.

What pushes this inhaler supply plan off break-even?

Stress test

The opening month clears break-even with a wide cushion, but the model gets sensitive if sales slow, fixed overhead rises, or contribution margin slips. A 20% revenue drop still covers fixed costs, so reorder speed, supplier pricing, freight, scrap, and expiry are the watchpoints.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$111,813	$1,579,854 cushion	Strong opening-month cushion.
Revenue shortfall	Year 1 monthly revenue falls 20%.	$111,813	$1,241,520 cushion	Demand softening is the first stress.
Fixed-cost pressure	Fixed monthly overhead rises 15%.	$128,576	$1,563,091 cushion	Overhead can climb before coverage tightens.
Margin pressure	Contribution margin falls 5 points to 74%.	$119,369	$1,572,297 cushion	Small cost creep moves break-even faster.
Combined pressure	Revenue falls 20%, overhead rises 15%, and margin falls to 74%.	$137,275	$1,216,058 cushion	Still covered, but slack is much thinner.

What should you verify before signing the warehouse lease and placing your first bulk order?

Founder checklist

Don’t commit until the first-year mix still supports $20.3M of revenue, the $88.3K monthly fixed load, and the $1.235M Month 1 cash need. The model can work, but only if supplier terms, storage, and the hiring ramp stay tight.

1Cash Cushion$1.235M

Confirm the Month 1 cash floor before you sign the lease or place bulk orders, and keep the $1.56M capex schedule separate from operating break-even.

2Launch Demand$20.3M Y1

Validate the first-year mix of 100,000 rescue, 50,000 steroid, 80,000 valved, 40,000 pediatric, and 30,000 combo units, because that plan is what drives the revenue base.

3Fixed Load$88.3K/mo

Check that warehouse, audit, insurance, marketing, IT, legal, and salaries stay covered at lower volume, or break-even slips fast.

4Unit Margin86% CM

Verify that CM, or contribution margin, stays near 86% after direct materials, testing, sterilization, compliance, freight, commissions, and rebates, because that is what pays the fixed base.

5Staffing Ramp5 FTE Y1

Hold the launch team at 5 FTE and add headcount only after reorder data is real, because QA and operations expand fast in later years.

6Inventory FlowMonth 1

Map storage for expiration-sensitive stock and the shipping workflow before marketing spend, because a late or damaged shipment turns revenue into scrap.