Refurbished Furniture Store Break-Even: $184K Monthly Sales Target

Fixed costs $14.8K/mo Overhead plus base pay

Contribution margin 80.5% After variable costs

Break-even revenue $18.4K/mo Monthly target sales

Break-even timing Month 26 Model break-even

Break-even calculator

Use this to test monthly revenue against variable costs and fixed overhead, so you can see the break-even point.

Lean Base Full

Monthly revenue Revenue is the money in each month before costs. It has to cover the rest of the cost stack. $ Low sales High sales Variable expenses These rise with sales, like furniture buy-ins, restoration supplies, and card fees. $ Low costs High costs

Money available to cover fixed costs $20,000 $24,000 revenue - $4,000 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs These are monthly costs you pay even when foot traffic is thin, including rent and wages. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with sales in this furniture shop?

Cost classification

Break-even lands in Month 26 only if fixed overhead and revenue-linked costs are separated cleanly. Treating payroll, materials, or fees the wrong way can make the store look profitable before cash pressure actually eases.

Expense	Cost	Break-Even Treatment	Common Mistake
Rent Retail Workshop	Fixed	Include the $3,500 monthly rent in the overhead base before sales volume is tested.	Assuming rent flexes down when traffic is slow.
Base payroll	Fixed	Include Year 1 scheduled payroll of about $10,000 per month before demand is proven.	Treating owner pay and restoration labor as free.
Furniture Acquisition Cost	Variable	Apply the 8% first-year rate to sales because sourcing rises with each item sold.	Using a flat monthly budget instead of tying it to revenue.
Restoration Materials	Variable	Apply the 5% first-year rate to sales, then watch repair intensity by product type.	Ignoring heavier material use on damaged or complex pieces.
Marketing & Sales	Variable	Model the 4% first-year rate as revenue-linked customer acquisition spend.	Locking spend as fixed when the model scales it with sales.
Payment Processing Fees	Variable	Apply the 2.5% fee to sales because card fees rise with transaction volume.	Forgetting fees on larger furniture tickets.
Utilities	Semi-variable	Start with the $450 monthly base, but expect usage to swing with workshop hours.	Keeping utilities flat during longer restoration schedules.
Business Insurance	Semi-fixed	Use the $150 monthly base, then step it up if coverage needs rise with scale.	Assuming the same policy fits higher inventory and delivery capacity.

How does break-even shift from a lean shop to a full-service refurbished furniture store?

Scenario table

Lean break-even is easiest to hit because payroll and overhead are lighter. The base and full-service cases need more sales, but the stronger contribution margin keeps the jump modest. These are planning cases, not sales guarantees.

Planning cases only; real break-even shifts with lease size, payroll timing, and sell-through speed.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean startup	$18,391	$3,586	$14,805	80.5%	$0	Lowest overhead, so break-even is the easiest to reach.
Base case	$20,850	$3,753	$17,097	82.0%	$0	This is the main planning case; it needs steady traffic to hold the line.
Full-service store	$21,723	$3,585	$18,138	83.5%	$0	Higher overhead raises the hurdle, but margin helps keep break-even close.

What pushes this refurbished furniture store from break-even into loss?

Stress test

This store sits right on the edge at about $18,391 in monthly revenue. A 10% sales miss, a 10% fixed-cost jump, or a 5-point margin slip is enough to turn break-even into a monthly loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$18,391	$0 gap	No cushion; the plan is flat.
Revenue shortfall	Monthly revenue is 10% lower.	$18,391	$1,481 gap	A small sales miss turns break-even into loss.
Fixed-cost pressure	Fixed costs are 10% higher.	$20,230	$1,839 gap	Higher rent or overhead raises the sales bar.
Margin pressure	Variable expenses rise 5 percentage points.	$19,609	$1,218 gap	Slower turns or more restoration hours squeeze margin.
Combined pressure	Revenue is 10% lower, fixed costs are 10% higher, and variable expenses rise 5 points.	$21,573	$3,789 gap	Two cost hits plus weaker sales create a real cash drag.

Can this refurbished furniture store cover its fixed load before you sign the lease?

Founder checklist

Don't lock the lease or add payroll until the store can clear the model's $14,805 monthly fixed load and still produce at least $18,400 in monthly sales. You also need funding for the $602,000 minimum cash need that shows up in Month 25.

1Sales Floor$18,400/mo

Verify the shop can hit this monthly sales level from Year 1 traffic and a 4% visitor-to-buyer rate before you commit.

2Fixed Load$14,805/mo

Confirm the $3,500 lease plus the rest of the fixed base stays inside this monthly burden, because rent is the first lock-in that can crowd out margin.

3Margin Test8% + 5%

Pressure-test furniture acquisition and restoration materials, since these costs decide how much sales you keep after each item sells.

4Staffing Ramp0.5 FTE

Keep the retail sales role at half-time in Year 1 and delay extra hiring if conversion or sell-through lags, so payroll does not outrun demand.

5Launch Capex$68K

Fund the full Month 1 to Month 6 build, including tools, fixtures, POS, website, signage, office gear, and the delivery van, before you open.

6Cash Reserve$602K

Confirm you can carry the minimum cash need in Month 25, because the model does not reach breakeven until Month 26.