PPE Break-Even Analysis: $183K Monthly Revenue Target

Fixed costs $3.45K/mo Core overhead

Contribution margin 85% After variable costs

Break-even revenue $4.1K/mo Monthly target

Break-even timing Month 23 Model turns positive

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against the break-even point for a PPE supplier.

Lean Base Full

Monthly revenue Revenue is the pool that pays direct costs and overhead. $ Low sales High sales Variable expenses Use direct costs that rise as PPE sales rise. $ Low costs High costs

Money available to cover fixed costs $82,650 $95,000 revenue - $12,350 variable expenses

Margin ratio

87%

Covers fixed costs

Yes

Fixed monthly costs Use recurring overhead the business pays each month. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which PPE expenses are fixed, and which move with sales?

Cost classification

Break-even is reliable only when revenue-linked costs reduce gross margin before fixed overhead is covered. In this model, certification, payment fees, and fulfillment should lower contribution margin, not sit in monthly overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent, $1,500 per month	Fixed	Include in monthly fixed overhead from Month 1 through Month 60.	Spreading rent by unit and hiding the true monthly cash hurdle.
Utilities and internet, $300 per month	Fixed	Add to fixed overhead for the relevant monthly planning range.	Treating small fixed bills as immaterial and leaving them out.
Software subscriptions, $500 per month	Fixed	Cover through contribution margin before the business reaches break-even.	Moving recurring tools into startup spend instead of monthly overhead.
Founder/CEO salary, $100,000 annually	Semi-fixed	Model as a recurring management layer that does not rise with each order.	Calling founder pay variable because sales work supports orders.
Operations Manager salary, $70,000 annually at 0.5 FTE in first year	Semi-fixed	Step up staffing as capacity grows; first-year load is half-time.	Assuming labor scales smoothly instead of jumping by headcount.
Direct cost of inventory, 8% of revenue in first year	Variable	Subtract from revenue as a margin reducer before fixed overhead.	Using purchase dollars only and missing revenue-linked inventory burden.
Quality control and certification, 2% of revenue in first year	Variable	Reduce contribution margin because it moves with compliant sales volume.	Treating certification as fixed overhead instead of a sales-linked expense.
Marketing budget and customer acquisition	Semi-variable	Plan budget steps from $10,000 in first year to $120,000 in Year 5, with CAC falling from $25 to $15.	Holding marketing flat while assuming customer volume keeps growing.

How does break-even shift from lean to base to full PPE scale?

Scenario table

As the mix moves from lean to full, fixed payroll and overhead rise faster than the margin improves, so break-even revenue climbs. The lean case needs less volume, while the full case only works once sales get much larger.

Planning assumptions only; actual break-even will move with mix, pricing, and fulfillment costs.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean PPE launch	$183K	$27.5K	$155K	85%	$0	Lean staffing can reach break-even with a thinner sales base.
Base wholesale mix	$283K	$40.2K	$243K	85.8%	$0	This is the core case; steady repeat orders need to hold near this level.
Full distributor mix	$396K	$53.1K	$343K	86.6%	$0	Full scale gives more room for growth, but it also needs the highest revenue base.

What breaks the Year 1 break-even plan for a PPE business?

Stress test

Year 1 break-even sits at about $182,353 on $155,000 of fixed overhead and a 15% variable-cost load. The risk is simple: slower sales, a 1-point margin hit, or added overhead can turn a thin buffer into a cash loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$182,353	$0 cushion	The base case sits right on the line.
Revenue shortfall	Revenue lands 10% below the break-even run rate.	$182,353	$18,235 gap	Slow reorders or discounting can push the month into loss.
Fixed-cost pressure	Monthly overhead rises by $1,000 before volume scales.	$196,471	$14,118 gap	Adding staff or space too early lifts the floor fast.
Margin pressure	Variable expenses rise from 15% to 16%.	$184,524	$2,171 gap	A 1-point cost hit raises the revenue bar right away.
Combined pressure	Revenue drops 10% and variable expenses rise to 16%.	$184,524	$20,406 gap	A near-break-even month can turn cash negative fast.

What should a PPE founder verify before signing the lease and locking in fixed costs?

Founder checklist

Don’t lock in the lease or payroll until the first-order pipeline can cover the $1,800 monthly site cost and the business can still fund the Month 23 breakeven path. If the $627K minimum cash need isn’t covered, keep fixed commitments small.

1Lease load$1.8K/mo

Confirm paid demand can cover $1,500 rent and $300 utilities before you add more fixed overhead.

2Starter stock$20K

Fund the first inventory buy and confirm the mask, glove, safety glasses, and helmet mix can reorder without trapping cash.

3Fulfillment setup$26K

Budget $12K for warehouse equipment, $8K for logistics integration, and $6K for security before wholesale volume starts.

4Payroll ramp$135K/yr

Add the $100K founder salary and the $35K Year 1 operations share only if sales can carry roughly $14.7K a month of fixed load.

5Launch CAC$25 CAC / 20%

Test whether $25 acquisition cost still works if only 20% of new buyers become repeat customers, or paid marketing will stretch payback.

6Cash runwayMonth 23 / $627K

If Month 23 breakeven and the $627K minimum cash need are not funded, slow fixed commitments and keep burn variable.