Secondhand Marketplace Break-Even Analysis: $67K Monthly Revenue

Fixed costs $6.9K Core overhead

Contribution margin 86% After variable costs

Break-even revenue $8.0K Monthly target

Break-even timing Month 17 Model turns positive

Break-even calculator

Use this to test whether monthly marketplace revenue clears variable costs and fixed overhead.

Lean Base Full

Monthly revenue Revenue is the monthly top line that has to cover variable costs and fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with sales, like processing, support, and acquisition spend. $ Tight costs Higher costs

Money available to cover fixed costs $61,920 $72,000 revenue - $10,080 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base the business must cover before profit starts. $ Lean base Bigger base

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a used-goods marketplace?

Cost classification

Break-even is reliable only when each expense follows the right behavior. Treat payment fees, hosting, and transaction support as volume-linked, while rent and core admin stay in fixed overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $2,500 per month in fixed overhead from Month 1 through Month 60.	Linking rent to order volume instead of keeping it stable in the monthly break-even base.
Legal & Compliance Services	Fixed	Include $1,000 per month in fixed overhead for the full planning period.	Dropping compliance from break-even because it does not scale with each transaction.
Platform Maintenance (Non-COGS)	Fixed	Include $1,500 per month as recurring platform overhead, separate from usage-based hosting.	Combining maintenance with hosting and making all platform spend variable.
Payment Processing Fees	Variable	Deduct 2.5% of revenue in the first year, declining to 2.0% by the fifth year, before calculating contribution margin.	Treating payment processing as fixed overhead, which overstates margin at higher transaction volume.
Server Hosting & CDN	Variable	Deduct 1.5% of revenue in the first year, declining to 1.0% by the fifth year, as volume-linked infrastructure spend.	Parking all hosting in fixed overhead and missing the usage drag from more listings and orders.
Customer Support (Transaction Volume)	Variable	Deduct 2.0% of revenue in the first year, declining to 1.5% by the fifth year, as support tied to transaction activity.	Modeling support as fixed when disputes, questions, and refunds rise with order count.
Sales & Marketing (User Acquisition)	Semi-variable	Model planned buyer and seller acquisition budgets as base spend, then apply the revenue-linked marketing rate of 8.0% in the first year.	Using only CAC budgets and ignoring the variable marketing load inside contribution margin.
Payroll Capacity Adds	Semi-fixed	Add payroll in steps when capacity changes, including the Junior Engineer from Month 19 and Operations Manager from Month 31.	Smoothing payroll as a percent of sales instead of adding roles when operating capacity increases.

How does break-even change from a lean launch to a base launch and a full launch?

Scenario table

The model flips at Month 17, with Year 1 EBITDA at -$377K and Year 2 at $183K. As staffing and acquisition spend rise from lean to full, fixed costs climb faster than the first revenue base.

Planning figures here are scenario assumptions for break-even analysis, not a guarantee of future results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$429K	$60K	$369K	86.0%	$0	Lowest burn, but it still needs steady seller flow.
Base launch	$671K	$94K	$577K	86.0%	$0	Matches the Month 17 break-even signal, so CAC control matters.
Full launch	$1.116M	$147K	$969K	86.8%	$0	Only works with validated buyers, sellers, and higher order density.

What breaks the break-even plan for a secondhand marketplace?

Stress test

Break-even is most exposed to slower buyer demand and fixed costs that grow before volume does. A 15% revenue dip leaves about an $87K gap, and a 10% fixed-cost jump pushes break-even to roughly $738K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the base case.	$671K	$0 cushion	At plan, revenue just covers fixed costs.
Revenue shortfall	Buyer revenue falls 15% from the base plan.	$671K	$87K gap	Higher CAC or slower repeat orders widen the miss.
Fixed-cost pressure	Fixed costs rise 10% before revenue scales.	$738K	$67K gap	Overhead growth pushes the target up fast.
Margin pressure	Variable expenses push contribution margin from 86% to 81%.	$713K	$42K gap	More disputes and support tickets eat the cushion.
Combined pressure	Buyer revenue falls 15% and fixed costs rise 10%.	$738K	$173K gap	Demand and overhead both miss the mark.

What should you verify before you commit to the full build and growth spend for a used-goods marketplace?

Founder checklist

Before you commit to the full build and growth spend, prove the marketplace can supply enough sellers, attract buyers at the stated CACs, and carry the fixed load. If those checks miss, the $273K cash floor in Month 17 gets tight fast.

1Seller Supply$50 CAC

Validate enough individual, small business, and pro reseller supply before scaling paid traffic, because Year 1 assumes a $50 seller CAC and a seller mix that can actually fill the marketplace.

2Buyer Demand$15 CAC

Test Casual Shoppers, Value Seekers, and Niche Collectors at a $15 buyer CAC so you know the paid funnel can bring in buyers without burning the margin.

3AOV Proof$40 / $70 / $120

Prove the order mix can really clear the $40, $70, and $120 AOV bands with live orders, because fee math only works if buyers spend where the model says.

4Repeat Orders0.50 / 0.80 / 1.20

Track repeat orders by segment and make sure Casual Shoppers, Value Seekers, and Niche Collectors stay near 0.50, 0.80, and 1.20 orders, or acquisition costs will outrun revenue.

5Trust Ops2% rev

Hold moderation, fraud review, refunds, and dispute handling to about 2% of revenue, because trust costs sit on top of transaction volume and can erase break-even.

6Runway$273K / Month 17

With about $36.9K of monthly fixed burn, keep enough cash for the $273K minimum cash point in Month 17 and delay extra hires if order volume misses plan.