RV Dealership Break-Even Analysis: $91K Monthly Revenue Target

Fixed costs $73.3K/mo Payroll plus overhead

Contribution margin 80.5% After variable costs

Break-even revenue $91.1K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Test how monthly sales, direct costs, and overhead move break-even for an RV dealership.

Lean Base Full

Monthly revenue Revenue sets the pool that pays variable and fixed costs. $ Lower sales Higher sales Variable expenses Direct costs rise with sales, including inventory and commissions. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $1,368,983 $1,700,600 revenue - $331,617 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which RV dealership expenses are fixed, and which move with sales?

Cost classification

Break-even is only reliable when inventory-linked costs stay variable and payroll stays in fixed overhead. In the first year, fixed wages alone add $45,000 per month before any unit is sold.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease	Fixed	Include $15,000 per month in the monthly break-even base from Month 1 through Month 60.	Spreading rent across units sold and hiding the real monthly hurdle.
Year 1 Staffing Wages	Fixed	Include $45,000 per month based on first-year salaries and planned full-time equivalents.	Excluding payroll from break-even fixed costs.
Inventory Acquisition Cost	Variable	Apply 17.0% against sales volume because it moves with new and used unit revenue.	Treating inventory-linked expense like fixed overhead.
Sales Commissions	Variable	Apply 2.0% to sales volume so commission expense rises only when sales rise.	Budgeting commissions as a flat monthly line.
Finance and Insurance Commissions	Variable	Apply 0.5% to contract-driven revenue tied to finance and insurance activity.	Ignoring commissions when contract attach rates improve.
Utilities	Semi-variable	Use the $2,500 monthly base, then flag upside risk if traffic, service work, or seasonality lifts usage.	Assuming the base plan covers peak-season usage.
Sales Associate Staffing Additions	Semi-fixed	Model staff in steps as planned headcount rises from 2.0 in the first year to 3.0 in the second year.	Scaling labor smoothly instead of adding real people in chunks.
Marketing and Branding	Semi-variable	Start with the $4,000 monthly base, then separate any seasonal campaign spend above plan.	Calling all marketing fixed when promotions rise with selling season.

How does break-even change as this RV dealership moves from lean to base to full scale?

Scenario table

As unit volume rises, fixed overhead is spread across more gross profit, so each step up in the model widens the cushion over break-even. Floorplan financing is excluded, so real cash pressure will be higher than this table shows.

Planning assumptions only; results are not guaranteed, and floorplan financing is excluded.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch setup	$951.8k	$185.6k	$73.3k	80.5%	$8.23M	Monthly revenue is about 10x the $91.1k break-even line.
Base scaled setup	$1.70M	$331.6k	$85.4k	80.5%	$15.25M	Monthly revenue is about 16x the $106.1k break-even line.
Full mature setup	$2.90M	$565.1k	$95.0k	80.5%	$26.62M	Monthly revenue is about 25x the $118.0k break-even line.

What breaks the break-even plan for this RV dealership?

Stress test

The base plan has a wide cushion: $951,833 of monthly revenue sits about $860,777 above the $91,056 break-even point. The real risk is a mix of slower turns, discounting, and any creep in overhead or margins.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$91,056	$860,777 cushion	Strong cushion, but floorplan carry is not modeled.
Revenue shortfall	Monthly revenue falls 10% to $856,650.	$91,056	$765,594 cushion	Slower unit turns cut the cushion fast.
Fixed-cost increase	Monthly overhead rises by $10,000.	$103,479	$848,354 cushion	More lease or operating overhead pushes break-even up.
Margin pressure	Contribution margin drops 1 point.	$92,201	$859,632 cushion	Discounting or fee pressure moves break-even almost one-for-one.
Combined pressure	Revenue falls 10%, overhead rises $10,000, and margin drops 1 point.	$104,781	$751,869 cushion	The plan still clears break-even, but the cushion narrows fast.

Is the RV dealership ready to sign the lease before counting on Month 1 break-even?

Founder checklist

Do not assume Month 1 break-even until the lease, lot access, inventory, staffing, and finance workflow are live. The model only works if you can fund the $415K launch capex, hold the $858K cash floor, and start with enough units and leads to match Year 1.

1Lease Load$73.3K/mo

Verify zoning and lot access before you sign the $15,000 lease, because the full monthly fixed load is about $73.3K once payroll and overhead start.

2Unit Margin81% CM

Verify 17% inventory cost, 2% sales commissions, and 0.5% F&I commissions still leave enough room after fixed costs, or break-even will move out fast.

3Supply Line170 units

Verify you can source 100 new RVs and 70 used RVs in Year 1, because demand only matters if the right stock is on the lot when buyers show up.

4Cash Buffer$858K

Verify you can fund the $415K launch capex and still keep the $858K minimum cash buffer, because the opening month is cash-heavy even if sales start fast.

5Core Team7.5 FTE

Verify the Year 1 team is in place at 7.5 FTE, including sales, F&I, service, admin, and half-time marketing, or work will pile up and slow delivery.

6Deal Flow136 contracts

Verify title and registration flow, F&I processing for 136 contracts, $4K monthly marketing, and service bay readiness, because deals only count if you can close and support them.