Rare Coin Dealer Break-Even: Cover $281k Monthly Overhead

Fixed costs $8.7K/mo Overhead base

Contribution margin 80.5% After variable costs

Break-even revenue $34.9K/mo Monthly target

Break-even timing Month 25 Model break point

Break-even calculator

Test monthly revenue against variable expenses and fixed costs to see when the business clears break-even.

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 Use direct costs that rise with sales, including inventory, grading, marketing, and processing. $ Light costs Heavy costs

Money available to cover fixed costs $108,030 $130,000 revenue - $21,970 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs Use the monthly cost base that stays on even when sales are slow, like rent and payroll. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with sales for a collectible coin and currency dealer?

Cost classification

Break-even only works if each expense sits in the right bucket. In the first operating year, payroll starts at $19,375/month, while per-sale costs like inventory, grading, processing, and paid marketing reduce margin before overhead is covered.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $2,200/month in the fixed overhead base.	Spreading rent across sales and hiding the true monthly floor.
Secure Vaulting & Storage Fees	Fixed	Include $1,300/month as recurring security overhead.	Leaving vaulting out because it does not look like selling expense.
Inventory Acquisition Cost	Variable	Deduct 10.0% of first-year revenue before calculating contribution margin.	Treating inventory as only a startup purchase instead of a per-sale margin drag.
Authentication & Grading Fees	Variable	Deduct 2.0% of first-year revenue as volume-linked selling cost.	Treating grading fees as overhead instead of per-sale margin drag.
Payment Processing Fees	Variable	Deduct 2.5% of first-year revenue as card and checkout volume rises.	Modeling gross sales as cash collected before processor fees.
Marketing & Advertising Performance Spend	Variable	Deduct 5.0% of first-year revenue when paid acquisition scales with orders.	Calling all marketing fixed and overstating unit economics.
Travel for Trade Shows & Sourcing	Semi-variable	Start with $750/month, then adjust when the event schedule expands.	Flat-lining travel even as sourcing trips become more frequent.
Payroll	Semi-fixed	Use $19,375/month in the first year, then step it up as staffing grows.	Assuming payroll moves smoothly with sales instead of hiring in chunks.

How does break-even change across lean, base, and full formats for rare coins and currency?

Scenario table

Lean keeps break-even lowest because staffing and overhead stay light, while base and full add payroll and fixed cost, so the revenue target rises. The model’s margin improves from 80.5% to 85.5%, which helps absorb the heavier setup.

Planning assumptions only; inventory acquisition falls from 100% in Year 1 to 80% in Year 5, so real margins can shift.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1	$34,875	$6,800	$28,075	80.5%	$0	Best for a light start, but a slow month leaves little cushion.
Base Year 3	$49,579	$8,379	$41,200	83.1%	$0	Good steady-state target; higher volume is needed to cover the bigger team.
Full Year 5	$62,807	$9,107	$53,700	85.5%	$0	Strong margin helps, but the larger payroll means sales must stay high.

What breaks first if sales slow, overhead climbs, or margins tighten?

Stress test

The current plan breaks even at about $34,875 a month on $28,075 of fixed overhead and payroll with an 80.5% contribution margin. If sales slip, overhead rises, or variable costs edge up, the cushion disappears fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in sales, margin, or overhead.	$34,875	$0 gap	Sales just cover fixed overhead and payroll.
Revenue shortfall	Revenue lands 20% below break-even, near $27,900 a month.	$34,875	$5,600 gap	A modest sales miss opens a real cash hole.
Fixed-cost pressure	Fixed overhead and payroll rise 10% to about $30,883 a month.	$38,364	$2,808 gap	Overhead inflation hits cash before sales catch up.
Margin pressure	Variable expenses rise from 19.5% to 24.5% of revenue.	$37,185	$1,760 gap	Tighter spreads burn through margin even if traffic holds.
Combined pressure	Revenue falls 20%, overhead rises 10%, and variable expenses rise to 24.5%.	$40,908	$9,800 gap	Sales, overhead, and spread pressure stack fast.

Can this coin and currency shop clear $34,875 a month before you sign the lease and hire?

Founder checklist

Only move ahead if monthly sales can clear $34,875 and the $250,000 inventory seed stays separate from operating cash. Month 25 is the break-even gate, so the lease and hires should wait until those numbers hold.

1Traffic proof≈$57.4K/mo

At 1,330 weekly visitors and 0.8% visitor-to-buyer conversion in Year 1, the model points to about $57.4K in monthly sales, which clears the $34,875 target before overhead.

2Overhead load$28.1K/mo

Check that Year 1 fixed costs plus planned payroll really stay near $28,075 a month, because that load is what makes the sales hurdle real.

3Margin check80.5%

Keep the blended contribution margin near 80.5% after 10.0% inventory cost, 2.0% grading fees, 5.0% performance marketing, and 2.5% payment fees, and test the $125 appraisal service at that same spread.

4Hiring gateMonth 25

Hold the operations hire until after Month 25 break-even unless cash runway already covers the loss period, because payroll comes before the store pays back.

5Cash reserve$161K

The minimum cash point is $161K in Month 24, so you need that reserve before you sign a lease or lock in the full staffing plan.

6Launch spend$362K

Keep the $112K of launch capex and the $250K inventory seed out of operating cash, and make sure authentication and vault steps are ready before you take in high-value stock.