Phone Case Store Break-Even: About $162k Monthly Sales

Fixed costs $13.3K/mo Rent and payroll

Contribution margin 82% After variable costs

Break-even revenue $16.2K/mo Monthly sales needed

Break-even timing Month 28 Forecast break-even

Break-even calculator

Check monthly revenue against variable expenses and fixed costs to see if the store clears break-even.

Lean Base Full

Monthly revenue Higher sales create more room to cover fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise with each sale. $ Lean costs Heavy costs

Money available to cover fixed costs $17,500 $20,000 revenue - $2,500 variable expenses

Margin ratio

88%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base sales must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which phone case store expenses are fixed, and which move with sales?

Cost classification

Break-even gets reliable only when rent and core payroll stay fixed while inventory, card fees, and commissions move with sales. Misclassify a 2.5% fee or $3,500 rent, and Month 28 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Rent	Fixed	Include $3,500 per month from Month 1 through Month 60.	Treating rent as flexible after lease signing.
Payroll	Semi-fixed	Start with about $8.6k per month in first-year wages, then step up as staffing expands.	Hiring before traffic proves out.
Inventory Purchases	Variable	Model Year 1 wholesale case and accessory purchases at 14.0% of sales.	Ignoring replenishment cash after initial stock.
Payment Processing Fees	Variable	Apply 2.5% of Year 1 sales, declining to 2.0% by Year 5.	Forgetting every card sale takes margin.
Sales Commissions & Bonuses	Variable	Apply 1.5% of sales across the full forecast period.	Treating bonus plans as free.
Utilities	Semi-variable	Include the $450 monthly base and review usage as traffic rises.	Assuming usage never changes.
Business Insurance	Fixed	Include $150 per month in operating break-even.	Leaving it out because it feels small.
POS & Software Subscriptions	Fixed	Include $200 per month as a recurring store operating expense.	Counting only hardware and missing the subscription.

How does break-even change from a lean launch to a full phone case store?

Scenario table

Lean launch breaks even with tighter staffing and a thinner cushion. Base growth and full mature cases improve coverage as the basket mix and payroll scale, and the full case gives the cleanest margin cushion if accessory sales stay strong.

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

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$162k	$29.2k	$133k	82.0%	$0	Just covers overhead, so traffic misses hurt fast.
Base growth case	$184k	$30.0k	$154k	83.7%	$0	Better coverage, but conversion and staffing still drive risk.
Full mature case	$190k	$27.6k	$163k	85.5%	$0	Strongest cushion, especially if the basket stays accessory-heavy.

What breaks first if traffic, fees, or rent move against this phone case store?

Stress test

This store is most exposed to slower foot traffic, higher fees, and heavier markdowns. A 20% revenue drop creates about a $27k monthly loss, while a 10% jump in fixed costs pushes break-even to about $178k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$162,000	$0 gap	Baseline sales only just cover the model.
Revenue shortfall	Sales drop 20% from plan.	$162,000	$27,000 gap	Weaker foot traffic turns the month negative fast.
Fixed costs up	Fixed costs rise 10%.	$178,000	$16,000 gap	Rent or payroll inflation needs more sales to break even.
Margin pressure	Variable expenses rise 3 points.	$168,000	$6,000 gap	Higher card fees, shrink, or markdowns cut margin fast.
Combined pressure	Sales drop 20%, fixed costs rise 10%, and variable expenses hit 21%.	$185,000	$44,000 gap	This is the worst case and cash burn jumps hard.

What should a phone case store founder verify before signing the lease and buying opening stock?

Founder checklist

Don’t sign the lease unless the location can hit the model’s traffic and basket math. This store still carries a $118K first-year EBITDA loss, breaks even in Month 28, and only pays back in Month 52.

1Traffic Test12/day

Verify the trade area can support about 174 visitors a day at 7% conversion, or the store will miss the order volume it needs.

2Fixed Load$4.7K/mo

Check that rent, utilities, insurance, POS, security, and cleaning stay near this level, because fixed costs hit before volume does.

3Margin82% CM

Confirm wholesale, processing, and sales incentives leave about 82% of sales to cover payroll and overhead, or break-even slips fast.

4Staffing Ramp$103K/yr

Make sure one manager and 1.5 associates can cover opening hours without adding labor too soon, since payroll is a major fixed drain.

5Cash Cushion$648K

Keep this much cash lined up, because the model shows a $118K EBITDA loss in Year 1 and doesn’t reach break-even until Month 28.

6Launch Capex$61.5K

Fund the $15K opening inventory and the $46.5K buildout separately, and lock supplier terms before the first stock buy.