One-For-One Retailer Break-Even Revenue: About $61K/Month

Fixed costs $7.9K/mo Core overhead

Contribution margin 80% After variable costs

Break-even revenue $9.9K/mo Fixed-cost cover

Break-even timing Month 17 Model crossing

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for this retail model.

Lean Base Full

Monthly revenue Revenue is the pool that covers product costs and overhead. $ Lower sales Higher sales Variable expenses These rise with each sale: sourcing, donated item, shipping, and fees. $ Lower costs Higher costs

Money available to cover fixed costs $172,600 $210,000 revenue - $37,400 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the margin has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for this retailer?

Cost classification

Break-even only works if each expense is put in the right bucket. Here, revenue-linked items like manufacturing, donated products, fulfillment, and fees must move with sales, while rent and core software stay fixed.

Expense	Cost	Break-Even Treatment	Common Mistake
Product Manufacturing & Sourcing	Variable	Use 8.0% of revenue in the first year, falling to 6.0% by Year 5.	Treating product sourcing as overhead instead of a sales-linked expense.
Cost of Donated Item	Variable	Use 5.0% of revenue in the first year and tie one donated unit to each sold unit.	Modeling donations as optional spend instead of part of every sale.
Shipping & Fulfillment Costs	Semi-variable	Use 5.0% of revenue in the first year, then track order volume, zones, and fulfillment mix.	Using one flat rate while order size and shipping zones change.
Payment Processing Fees	Variable	Use 2.0% of revenue in the first year, declining to 1.6% by Year 5.	Burying card fees inside software subscriptions.
E-commerce Platform Subscription	Fixed	Use $1,500/month from Month 1 through Month 60.	Scaling the subscription with revenue when the model gives a fixed monthly amount.
Office Rent	Fixed	Use $2,500/month from Month 1 through Month 60.	Letting rent rise with sales without a stated expansion trigger.
Warehouse Storage Fees	Semi-variable	Use the $1,200/month baseline, then stress-test capacity as unit volume rises.	Assuming storage stays flat even when units per order increase.
Payroll	Semi-fixed	Use first-year wages of $192,500/year, about $16,042/month, then step up as planned hires start.	Treating every role as variable labor tied to each order.

How does break-even move as this one-for-one retailer goes from lean to base to full scale?

Scenario table

Here’s the quick math: as fixed costs rise from about $489K to about $1,258K, break-even revenue climbs from $612K to about $1,491K. The higher-margin full-scale case helps, but only if demand and repeat buying keep up.

Planning assumptions only; actual break-even will move with order mix, CAC, repeat orders, and donation costs.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$612K	$122K	$489K	80%	$0	Very little cushion; a small miss on volume turns it negative.
Base case	$929K	$177K	$752K	81%	$0	Slightly safer than lean, but still sensitive to CAC and repeat orders.
Full-scale case	$1,491K	$233K	$1,258K	84.4%	$0	Best margin mix, but it needs the biggest revenue base to clear fixed cost.

What breaks the break-even plan for this one-for-one retailer?

Stress test

The plan is tight: a 10% sales miss, a 1-point hit to variable costs, or $1,000 more fixed cost each month can push break-even higher fast. That matters because the model already hits its cash low in Month 17.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$612,000	$0 gap	Keep CAC under $30 to hold the base case.
Revenue shortfall	Revenue falls 10% from the Year 1 break-even point.	$612,000	$61,000 gap	A 10% sales miss wipes out the cushion.
Fixed-cost pressure	Fixed monthly costs rise by $1,000.	$627,000	$15,000 gap	Fixed commitments rising before order volume is the problem.
Margin pressure	Variable expense ratio rises by 1 point.	$620,000	$8,000 gap	Shipping or donated-item cost above 5% pushes break-even up.
Combined pressure	Revenue falls 10%, fixed monthly costs rise by $1,000, and variable expense ratio rises by 1 point.	$635,000	$84,000 gap	Those three hits can widen the cash gap before Month 17.

Is your one-for-one retailer ready to clear break-even before you lock in inventory, hires, and the lease?

Founder checklist

Test the launch against the model’s break-even inputs first. If order value, CAC, repeat demand, or unit costs slip, Month 17 break-even can move out fast and the cash need will jump.

1Launch AOV$30.64

Confirm Year 1 cart value lands near $30.64, because that order mix supports the revenue base behind break-even.

2CAC$30

Test whether customer acquisition cost can hold near $30 per new customer, since the Year 1 marketing plan depends on it.

3Repeat Rate25%

Verify repeat customers reach 25% of new customers, or you will need more fresh traffic than the model assumes.

4Cost Stack80% CM

Keep manufacturing at 8%, donated items at 5%, shipping at 5%, and payment processing at 2%, so contribution margin stays near 80%.

5Fixed Load$23.9K/mo

Hold monthly fixed costs near $23.9K and keep the $138K of setup items out of the monthly math, or overhead will outrun demand.

6Cash Buffer$553K

Fund at least $553K of opening cash, because the model does not reach break-even until Month 17 and Year 1 EBITDA is negative.