Sanitary Ware Store Break-Even: About $525K Monthly Revenue

Fixed costs $43.6K/mo Year 1 overhead base

Contribution margin 83% After variable costs

Break-even revenue $52.5K/mo Monthly target

Break-even timing Month 26 Modeled break-even

Break-even calculator

Use this to see how monthly revenue, variable costs, and fixed costs stack up against break-even.

Lean Base Full

Monthly revenue Revenue is the cash that feeds contribution margin and covers fixed costs. $ Low sales High sales Variable expenses Use costs that rise with each sale, like inventory, commissions, and payment fees. $ Low costs High costs

Money available to cover fixed costs $48,000 $60,000 revenue - $12,000 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs Use the monthly cost base the store pays even if sales slow down. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a bathroom and kitchen fixture store?

Cost classification

If inventory, freight, commissions, and card fees sit below overhead, break-even looks too easy. Keep sales-driven costs in contribution margin and showroom overhead in fixed costs.

Expense	Cost	Break-Even Treatment	Common Mistake
Showroom Lease	Fixed	Include $15,000 per month in fixed overhead from Month 1 through Month 60.	Treating rent as if it rises and falls with sales.
Store Manager payroll	Fixed	Include $7,500 per month in overhead based on the $90,000 annual salary.	Ignoring payroll before traffic and buyer conversion prove out.
Direct Inventory Cost	Variable	Deduct 12.0% of revenue in the first year before calculating contribution margin.	Putting inventory purchases below operating overhead.
Inbound Freight & Handling	Variable	Deduct 1.5% of revenue in the first year to capture landed product cost.	Forgetting freight pressure on gross margin.
Sales Commissions	Variable	Deduct 2.5% of revenue in the first year as sales volume grows.	Modeling commission like fixed payroll.
Payment Processing Fees	Variable	Deduct 1.0% of revenue in the first year before break-even.	Leaving card fees out of contribution margin.
Utilities	Semi-fixed	Use the $1,500 monthly baseline, then review capacity needs as showroom traffic rises.	Assuming lights and HVAC scale only with sales.
Showroom Maintenance & Cleaning	Semi-fixed	Use the $1,000 monthly baseline, with step-ups when displays and foot traffic expand.	Underbudgeting display upkeep during higher traffic months.

How does break-even change from a lean launch to a full sanitary ware showroom?

Scenario table

CM, or contribution margin, is what's left after variable costs. A lean floor plan can break even on less revenue, but a bigger showroom needs more traffic to cover the heavier lease and staffing load.

Planning assumptions only; actual break-even will move with rent, traffic, and product mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$52.5k	$8.9k	$43.6k	83.0%	$0	Tight cushion; a small traffic miss turns this negative.
Base growth	$66.3k	$10.3k	$56.1k	84.5%	$0	Balanced setup, but it still needs steady visitor flow to hold break-even.
Full showroom	$69.9k	$9.6k	$60.2k	86.2%	$0	Highest margin, yet the bigger overhead leaves less room for slow weeks.

What breaks the break-even plan if showroom traffic drops or costs climb?

Stress test

The base case covers overhead comfortably, but it depends on steady showroom traffic and a tight cost base. A 20% sales drop still works; a 10% fixed-cost bump or a 3-point margin slip cuts the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; 83% contribution margin and $436k fixed monthly costs.	$525k	$798k cushion	Healthy cushion if traffic holds.
Revenue shortfall	Revenue falls 20% to about $1,058k.	$525k	$533k cushion	Still above break-even, but headroom drops fast.
Fixed cost rise	Fixed costs rise 10% to about $480k.	$577k	$746k cushion	Overhead gets heavier, but the plan still clears it.
Margin pressure	Variable expense pressure cuts contribution margin to 80%.	$545k	$778k cushion	A small margin slip is manageable, but watch freight and payroll.
Combined pressure	Revenue falls 20%, fixed costs rise 10%, and contribution margin drops to 80%.	$599k	$459k cushion	The model still works, but the cushion shrinks sharply.

Can this sanitary ware store carry the lease, payroll, and launch spend before you commit?

Founder checklist

Don’t sign the lease or place the first big order until the store can carry about $43.6K a month in fixed load and still keep $90K of cash through Month 25. Treat Month 26 break-even and the 43-month payback as planning gates, not promises.

1Fixed load$43.6K/mo

Verify the lease, overhead, and Year 1 payroll can stay near this run rate, and budget the $440K launch spend separately because that cash leaves before sales do.

2Traffic proof67/day

Confirm the showroom can draw about 67 visitors a day in Year 1, because 6.0% visitor-to-buyer conversion only works if launch traffic holds after opening.

3Margin lock83.0% CM

Lock supplier and fee terms so direct inventory, freight, commissions, and processing stay near 17.0% of sales, which leaves enough contribution to cover fixed costs.

4Basket size$1.07K/order

Check that two units per order and the Year 1 product mix really produce this ticket size, because weaker mix or smaller baskets push break-even farther out.

5Staff ramp4.5 FTE

Make sure 4.5 full-time equivalents can cover the floor, quotes, follow-up, and order handling at launch, then expand staff only when demand is proven.

6Cash reserve$90K, Month 25

Keep at least this cushion in place through Month 25, because the model does not reach break-even until Month 26 and payback takes 43 months.