Mixed-Use Development Break-Even: $135K Monthly Revenue By Month 26

Fixed costs $30.3K/mo Base overhead only

Contribution margin 91% After variable costs

Break-even revenue $33.3K/mo Cover fixed costs

Break-even timing Month 26 Model break-even

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a mixed-use development.

Lean Base Full

Monthly revenue Higher rent roll gives more cash to cover fixed overhead. $ Low rent Peak rent Variable expenses These costs move with leased space and leasing activity. $ Low costs High costs

Money available to cover fixed costs $1,533,060 $1,670,000 revenue - $136,940 variable expenses

Margin ratio

92%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the project must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with leasing revenue in this project?

Cost classification

Break-even at Month 26 only holds if fixed overhead, revenue-linked fees, and step costs are kept separate. Misclassifying payroll or leased site payments can make the project look profitable before the cash curve supports it.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $12,000 per month from Month 1 through Month 60.	Tying office rent to occupancy.
Legal & Accounting Fees	Fixed	Include $7,500 per month as recurring overhead.	Burying recurring fees in launch spend.
Technology & Software Subscriptions	Fixed	Include $2,500 per month even before lease revenue starts.	Omitting small recurring tools.
Payroll	Semi-fixed	Model staffing in steps: about $36,500 per month in the first year and $55,000 per month by Year 3.	Assuming headcount scales smoothly.
Leased Site Payments	Semi-fixed	Add $25,000 per month when the retail site starts in Month 9 and $15,000 per month when the community site starts in Month 23.	Missing rent step changes.
Property Management Fees	Variable	Apply to revenue at 4.0% in Year 1, falling to 2.0% in Year 5.	Using one rate forever.
Leasing & Marketing Commissions	Variable	Apply to revenue at 3.0% in Year 1, falling to 1.0% in Year 5.	Ignoring lease-up pressure.
Utilities & Maintenance Common Areas	Variable	Apply to revenue at 2.0% in Year 1, rising to 3.0% in Year 5.	Assuming utilities stay flat.

How does break-even shift from a lean launch to the Month 26 base case and then to the full stabilized rent roll?

Scenario table

Here’s the quick math: the lean case burns about $66.8K a month before rent starts, but Month 26 brings in $1.55M of monthly revenue. That moves the project far above its roughly $92K monthly break-even point.

Planning assumptions only; excludes sale value, cap rates, and resale proceeds.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch ramp	$0	$0	$66.8K	91.0%	-$66.8K	No rent has opened yet, so fixed burn drives the short-term deficit.
Month 26 base case	$1.55M	$116.3K	$85.3K	92.5%	$1.35M	Month 26 clears operating break-even with the first $1.55M monthly rent roll.
Stabilized full rent roll	$2.77M	$166.2K	$85.3K	94.0%	$2.52M	The stabilized rent roll leaves a wide cushion above monthly break-even.

What breaks the mixed-use break-even plan?

Stress test

The plan is most exposed to slower lease-up and small cost jumps. At Month 26, Year 3 fixed costs run about $85.3k a month, so a 20% revenue miss or a 300 bps margin hit can erase the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$92,216	$0 gap	Month 26 is the baseline.
Revenue shortfall	Monthly revenue is 20% lower than plan.	$92,216	$18,443 gap	Lease-up slippage cuts into cash fast.
Fixed-cost pressure	Fixed costs rise 10% from Year 3 levels.	$101,411	$9,195 gap	Payroll and overhead push the threshold higher.
Margin pressure	Variable expenses rise 300 basis points to 10.5%.	$95,307	$3,091 gap	Management fees and common-area costs squeeze margin.
Combined pressure	Revenue falls 20%, fixed costs rise 10%, and variable expense rate reaches 10.5%.	$104,825	$31,052 gap	Delay and cost creep can deepen the Month 36 cash trough.

What should you verify before locking major operating commitments in a mixed-use project?

Founder checklist

Before you lock major leases, payroll, or buildout costs, verify that lease-up can carry the project to Month 26 operating break-even without hitting the Month 36 cash trough too early. The model only works if demand, occupancy timing, and staffing ramp line up.

1EntitlementPre-rent

Verify zoning and entitlement status before rent commitments, because open approvals can turn every signed cost into delay risk.

2CO TimingBefore move-ins

Confirm certificate of occupancy timing before move-ins so rent starts do not lag behind payroll and overhead.

3Preleasing3 segments

Lock preleasing targets for residential, retail, and commercial space before heavy construction spend, since each wave needs demand in place.

4Lease TermsCash terms

Review signed leases, deposits, concessions, and collection terms now, because weak terms can hide vacancy even when space looks filled.

5Site OpsReady to open

Check tenant improvement funding, utility capacity, metering, trash, loading, security, parking, access, signage, and delivery flow before occupancy.

6Runway-$140.6M

Stage hiring so payroll and fixed overhead do not outrun lease-up, and keep the Month 36 minimum cash trough in view.