Retro Video Game Store Break-Even Analysis: $17k Monthly Sales

Fixed costs $11.1K/mo Base overhead

Contribution margin 81% After variable costs

Break-even revenue $13.7K/mo Revenue target

Break-even timing Month 26 Model break-even

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when the store breaks even.

Lean Base Full

Monthly revenue Sales bring in the margin that has to cover fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise as sales rise. $ Low costs High costs

Money available to cover fixed costs $24,300 $30,000 revenue - $5,700 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the store must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a retro game store?

Cost classification

Break-even works only if fixed overhead and sales-linked costs are split cleanly. Here, rent and base payroll set the monthly hurdle, while inventory, repair supplies, card fees, and promotions reduce contribution margin as revenue grows.

Expense	Cost	Break-Even Treatment	Common Mistake
Store Rent	Fixed	Include $3,000 per month in the fixed overhead base.	Spreading rent across each sale as if it changes with volume.
Base Payroll	Fixed	Include planned staffing as fixed labor, including the $50,000 manager and $35,000 lead associate.	Treating base staff as variable just because hours feel busy.
Utilities	Fixed	Use $400 per month as fixed within the normal store traffic range.	Over-modeling small usage swings before sales volume supports it.
Inventory Acquisition Cost	Variable	Deduct as a revenue-linked margin drag, starting at 10.0% in the first year.	Treating inventory purchases as fixed overhead instead of sales-linked cost.
Refurbishment & Testing Supplies	Variable	Deduct 1.5% of revenue before contribution margin.	Ignoring testing supplies when console sales increase.
Payment Processing Fees	Variable	Deduct 2.5% of revenue for card and digital payments.	Counting gross sales as cash received before processor fees.
Marketing & Promotions	Variable	Model as sales-linked spend, starting at 5.0% in the first year.	Locking promotions as fixed even when campaigns scale with traffic.

How does break-even shift across lean, base, and full store setups for a retro video game shop?

Scenario table

The lean case is a launch survival test, the base case sits at Month 26 break-even, and the full case builds a strong cushion. More monthly revenue matters, but fixed store and staffing costs still drive the crossover.

Modeled planning assumptions can change with foot traffic, rent, and product mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$16k	$3k	$138k	81%	-$125k	Still well below break-even; loss is the signal.
Base case	$329k	$56k	$179k	83%	$94k	Past crossover; this matches the Month 26 break-even test.
Full mature-store case	$877k	$132k	$204k	85%	$541k	Strong cushion; the store can absorb slower weeks.

What pushes the retro video game store past break-even?

Stress test

The store is most exposed to lower traffic and margin pressure. A $1,000 monthly rent hike or a move from 19% to 24% variable expense pushes break-even up fast, and the combined case is the real stress point.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$170k	$0 gap	Base break-even leaves no cushion.
Revenue shortfall	Sales land at 90% of break-even revenue.	$170k	$17k gap	A small drop in traffic quickly hurts cash.
Fixed-cost pressure	Rent rises by $1,000 per month.	$182k	$12k gap	Rent lifts the bar even if sales stay flat.
Margin pressure	Variable expenses rise from 19% to 24%.	$181k	$11k gap	Card fees, shrinkage, and trade-in spread squeeze margin.
Combined pressure	Rent rises by $1,000 per month and variable expenses rise to 24%.	$194k	$24k gap	Two small hits together make break-even much harder.

Can this retro video game store clear break-even before you sign the lease?

Founder checklist

Use this as a go/no-go test before you lock in rent, inventory, or hires. The store has to cover Year 1 payroll and overhead, keep the opening spend near $55K, and still have a path to Month 26 break-even with cash left in Month 28.

1Traffic Proof8%→12%

Check that visitor-to-buyer conversion can move from 8% in Year 1 to 12% by Year 3 before you commit to rent and stock.

2Fixed Load$13.8K/mo

Verify gross profit can cover about $13.8K a month in Year 1 fixed payroll and overhead before owner draw.

3Margin Check81% CM

Keep inventory buys near the 10% acquisition cost assumption and hold trade-in grading tight, or contribution margin drops fast.

4Staffing Ramp4.5 FTE

Do not add the Year 3 staffing mix of 4.5 FTE until weekday and weekend traffic can pay for it.

5Cash Cushion$574K

Hold the Month 28 cash cushion at roughly $574K, because EBITDA is still negative in Year 2 and payback takes 51 months.

6Break-Even PlanMonth 26

Do not treat launch as break-even; the model reaches break-even in Month 26, so the opening $55K spend has to survive a long ramp.