Resort Break-Even Analysis: $239K Monthly Revenue Target

Fixed costs $192.7K/mo Opening base

Contribution margin 90% After variable costs

Break-even revenue $214K/mo Monthly target

Break-even timing Month 1 Launch breakeven

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed monthly costs against break-even.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise with guest sales and service volume. $ Lower costs Higher costs

Money available to cover fixed costs $2,437,487 $2,448,487 revenue - $11,000 variable expenses

Margin ratio

100%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lean base Heavy base

Break-even chart Revenue Total costs

Which resort expenses are fixed, and which move with occupied room nights?

Cost classification

At Month 1 break-even, the model only works if the $68,500 monthly base overhead is separated from costs that flex with sales or occupied room nights. Misclassifying payroll or utilities can make break-even look safer than cash will feel.

Expense	Cost	Break-Even Treatment	Common Mistake
Property Insurance	Fixed	Include the $15,000 monthly amount in fixed overhead from Month 1 through Month 60.	Spreading it across room nights and understating the base revenue needed before any guest checks in.
Legal & Accounting Retainer	Fixed	Include the $3,000 monthly retainer as recurring overhead in every break-even month.	Treating the retainer as a one-time opening item and leaving it out of monthly break-even.
Utilities Base	Semi-variable	Keep the $25,000 monthly base in overhead, then add measured usage charges when occupancy rises.	Treating the full utility bill as fixed even when occupied rooms drive water, power, and laundry use.
Food & Beverage Ingredients	Variable	Apply the first-year 12.0% rate to food and beverage sales when calculating contribution margin.	Using room revenue only and missing ingredient costs tied to restaurant and bar volume.
Spa Product Costs	Variable	Apply the first-year 3.0% rate to spa service sales before measuring service contribution.	Counting spa revenue as nearly pure margin and ignoring products consumed during treatments.
Travel Agent Commissions	Variable	Apply the first-year 3.0% commission rate to booked revenue that flows through commissionable channels.	Averaging commissions across all sales, including direct bookings that may not carry the same fee.
Housekeeping Supplies	Variable	Apply the first-year 1.5% rate as occupied room nights and guest turnover increase.	Budgeting supplies as flat overhead and missing the cost of higher occupancy.
Housekeeping Staff	Semi-fixed	Model the $35,000 salary by full-time equivalent, stepping from 10.0 FTEs in the first year to 18.0 FTEs by year five.	Treating all payroll as fixed when hourly coverage often moves with occupied room nights.

How does break-even change from a lean opening, to the base case, to full build-out at this resort?

Scenario table

Higher occupancy and room rates lift revenue faster than payroll and other fixed costs, so break-even gets safer as the resort scales. The opening case still carries the most risk because staffing and seasonality hit cash first.

Planning cases only: these figures use model assumptions, so actual results can move with demand, staffing, and season mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening case	$2.03M	$396k	$193k	80.5%	$1.44M	Clear break-even, but launch risk is highest.
Base case, Year 3	$2.70M	$483k	$229k	82.1%	$1.99M	Clear break-even with a wider cushion.
Full build-out case	$3.28M	$535k	$266k	83.7%	$2.48M	Strong break-even cushion if demand holds.

How much can occupancy and cost pressure rise before the resort misses break-even?

Stress test

Monthly revenue is about $1.95M against a staffed break-even near $239K, so the resort can absorb roughly an 88% revenue drop before operating loss if the 80.5% contribution margin holds. Off-season occupancy and food, utility, and staffing creep are the main threats.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$239,000	$1,711,000 cushion	Roughly 88% of revenue can disappear before loss.
Revenue shortfall	Monthly revenue falls 25% from lower occupancy and softer ancillary spend.	$239,000	$1,224,000 cushion	Demand softness still leaves a cushion, but it shrinks fast.
Fixed-cost increase	Fixed overhead rises 10% from higher utilities, security, and staffing load.	$263,000	$1,687,000 cushion	Overhead creep raises the floor and trims flexibility.
Margin pressure	Variable costs rise from 19.5% to 22.5% of revenue.	$249,000	$1,701,000 cushion	Food, spa, and commission inflation cut contribution first.
Combined pressure	Revenue falls 25%, fixed costs rise 10%, and variable costs rise to 22.5%.	$273,000	$1,189,000 cushion	Off-season occupancy and weaker spa, event, retail, or activity spend become the danger zone.

What should you verify before signing the resort site commitment?

Founder checklist

Before you commit, prove the 140-room mix can hold 58% Year 1 occupancy, the $275K ancillary plan, and the $68.5K monthly fixed load without stretching cash. If those numbers slip, the $9.3M build and Month 3 cash trough get hard to fund.

1Room Base140 rooms

Verify the 140-room mix can sell through before you sign a lease or buy the asset; without that room base, the rest of the model never gets off the ground.

2Occupancy Test58% Y1

Test Year 1 occupancy at 58% against local seasonality; a weaker shoulder season pushes break-even out fast.

3ADR Mix$450-$3.0K

Confirm the midweek and weekend ADR spread for Deluxe King, Ocean Suite, Grand Villa, and Penthouse; the rate mix has to hold before the first booking.

4Ancillary Sales$275K

Validate the Year 1 ancillary plan totals $275K across F&B, spa, events, retail, and activities; those add-ons support break-even when room demand dips.

5Fixed Load$68.5K/mo

Check the $68.5K monthly fixed load and the $1.49M Year 1 payroll before you add staff; the cost stack has to fit inside gross margin.

6Cash Cushion-$2.773M

Protect cash for the Month 3 trough because minimum cash is -$2.773M and capex totals $9.3M across renovation, furnishings, amenities, kitchen, spa, IT, vehicles, laundry, and security.