Skydiving Center Break-Even Analysis: $111K Monthly Revenue

Fixed costs $64.5K/mo Core overhead base

Contribution margin 96.3% After jump spend

Break-even revenue $67.0K/mo Monthly target

Break-even timing Month 14 Cash turns positive

Break-even calculator

Test whether monthly jump revenue can cover direct costs and the fixed cost base.

Lean Base Full

Monthly revenue Monthly sales drive the cash left after direct costs. $ Early ramp Peak month Variable expenses Direct jump costs and sales costs rise with activity. $ Low direct cost High direct cost

Money available to cover fixed costs $195,550 $205,750 revenue - $10,200 variable expenses

Margin ratio

95%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even has to cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which skydiving center expenses are fixed, and which move with jump volume?

Cost classification

Break-even works only if overhead stays separate from per-jump spend. Treat fixed aircraft, payroll, and insurance items as monthly commitments, then let fuel, gear usage, and sales fees move with volume.

Expense	Cost	Break-Even Treatment	Common Mistake
Hangar Lease	Fixed	Include $15,000/month in fixed overhead before calculating required jump volume.	Spreading it per jump and hiding the monthly cash load.
Property Insurance	Fixed	Include $2,500/month as recurring overhead in the break-even base.	Treating insurance as a per-jump charge when it does not scale with each booking.
Aircraft Maintenance Fixed	Fixed	Include $5,000/month as baseline aircraft upkeep needed to operate.	Modeling all aircraft spend as variable and understating low-volume losses.
Chief Pilot	Fixed	Include $130,000/year as core staffing overhead across the planning range.	Allocating the full salary per jump and making high-volume margins look too low.
Tandem Instructor	Semi-fixed	Model as capacity steps because staffing rises from 3 FTE to 5 FTE.	Assuming instructor payroll moves smoothly with every jump.
Ground Crew	Semi-fixed	Model as staffing steps because crew rises from 2 FTE to 3 FTE.	Keeping crew flat after volume grows, which overstates profit.
Aircraft Fuel per Jump	Variable	Apply 6% against jump activity as direct operating spend.	Putting fuel in fixed overhead and missing margin pressure as volume rises.
Equipment Usage per Jump	Variable	Apply 4% against jump activity for gear wear tied to usage.	Ignoring per-jump gear wear and overstating contribution margin.

How does break-even shift from a lean launch to base and full volume at a skydiving center?

Scenario table

Break-even shifts because fixed payroll and hangar costs stay heavy while jump volume and photo, merch, and training income lift revenue. The lean case still runs a small monthly gap, the base case clears it, and the full case creates leverage.

Planning assumptions only; actual jump mix, weather, aircraft uptime, and booking pace can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$105,583	$18,985	$90,983	82%	-$4,385	Launch risk stays high; this level still leaves a small monthly loss.
Base break-even case	$154,792	$27,862	$90,983	82%	$35,947	This is the first steady cushion and lines up with the modeled Month 14 break-even.
Full-volume case	$312,917	$56,325	$108,067	82%	$148,525	Overhead is spread well, so growth adds profit faster than cost.

What pressure pushes the skydiving center past break-even?

Stress test

Base break-even is $110,955/month at an 82% contribution margin and $90,983 of fixed costs. At $105,583 of monthly revenue, the plan already runs a $5,372 gap, so weather cuts, lower load factor, or added crew and insurance costs can move it under water fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$110,955/month	$5,372 gap	Small weather or fill-rate slip breaks even.
Revenue shortfall	Monthly revenue drops to $95,024.	$110,955/month	$15,931 gap	Weaker demand widens the cash hole.
Fixed-cost pressure	Fixed costs rise by $5,000 a month.	$117,053/month	$11,470 gap	Lease, insurance, or staffing creep hits fast.
Margin pressure	Variable expense rises 1 point, cutting contribution margin to 81%.	$112,323/month	$6,740 gap	Fuel or commission pressure pushes break-even above $112k.
Combined pressure	Revenue falls to $95,024, fixed costs rise $5,000, and margin falls to 81%.	$118,494/month	$23,470 gap	That mix leaves a wide gap to close.

What should you verify before you sign the hangar lease and buy the aircraft?

Founder checklist

Do not lock the lease or aircraft spend until airfield access, insurance, gear, crew, and booking flow line up with the Year 1 plan. Break-even lands in Month 14, but cash bottoms at -$1.437M in Month 13, so the launch buffer has to be real.

1Site Access$1.5M aircraft

Confirm airfield access, the hangar lease, property insurance, and the aircraft plan before you spend, because the model assumes a $1.5M purchase in the first three months.

2Launch Demand3.6K jumps

Check that early bookings can reach 3,600 jumps in Year 1 and help sell the $180K add-on plan, because seat fill and upsells both drive break-even.

3Fixed Load$91.0K/mo

Validate the fixed monthly burn of about $91.0K, including the $15,000 hangar lease, $2,500 office rent, and Year 1 wages, because this is the cost floor the jumps must cover.

4Unit Margin93%-95% CM

Check that each package still holds a 93% to 95% contribution margin after $6 fuel, $4 equipment use, $5 marketing, and $3 booking commissions per jump, or payback stretches.

5Crew Ramp10 FTE

Match the first-year crew plan to 10 FTE across the chief pilot, tandem instructors, ground crew, mechanic, safety officer, office manager, and marketing coordinator, and test the manifest plus weather-cancel flow.

6Cash Buffer-$1.437M

Protect cash for the Month 13 trough, because minimum cash reaches -$1.437M before the model gets to the Month 14 break-even point.