Soybean Processing Break-Even Analysis: $126K Monthly Revenue

Fixed costs $107.6K/mo Plant base

Contribution margin 85% After variable costs

Break-even revenue $126.0K/mo Revenue target

Break-even timing Month 1 Launch month

Break-even calculator

Test whether monthly revenue covers variable expenses and fixed overhead for soybean processing.

Lean Base Full

Monthly revenue Revenue is the pool that covers direct costs and leaves margin for fixed overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise as output and sales volume rise. $ Lower costs Higher costs

Money available to cover fixed costs $9,402,117 $10,620,000 revenue - $1,217,883 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business has to cover before profit. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which soybean processing expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if unit-linked costs stay below contribution margin and monthly fixed costs stay in the right bucket. Raw inputs and sales fees move with revenue, while lease and salaried roles set the monthly hurdle.

Expense	Cost	Break-Even Treatment	Common Mistake
Raw Soybeans	Variable	Use the product-level unit rate: $80, $60, $150, $200, or $120 per unit, depending on the line.	Using one blended soybean rate and hiding product-margin gaps.
Direct Processing Labor	Variable	Apply per unit at $10, $8, $50, $70, or $30 by product line.	Treating all labor as fixed payroll instead of batch-linked work.
Energy, Chemicals, Solvents, Packaging, and Storage	Variable	Load these into unit economics when tied to extraction, drying, purification, blending, or packaging volume.	Parking usage-driven plant inputs in overhead and overstating margin.
Sales Commissions	Variable	Reduce contribution by 5.0% of first-year revenue, then use the forecast rate for later years.	Modeling commissions as a flat monthly spend when they rise with sales.
Outbound Logistics	Variable	Reduce contribution by 3.0% of first-year revenue, then use the forecast rate for later years.	Ignoring freight in break-even and finding the miss after shipments start.
Facility Lease	Fixed	Include $25,000 per month in the monthly break-even hurdle from Month 1 through Month 60.	Spreading lease over units and making low-volume months look too good.
Salaried Plant Roles	Semi-fixed	Add about $49,583 per month in the first year, then step up when forecast full-time roles increase.	Scaling salaried roles penny-for-penny with revenue instead of staffing steps.
Factory Utilities	Semi-variable	Model at 0.3% of revenue because usage rises with production, even if some base service remains.	Calling all utilities fixed and missing the load from higher plant output.

How does break-even shift from a lean opening mix to base and full soybean processing output?

Scenario table

Break-even stays positive in every case because revenue grows faster than variable costs as the mix shifts from oil and meal toward higher-value isolate and lecithin. The real test is whether sales contracts can absorb the planned volumes.

Planning assumptions only; actual margins will move with soybean prices, product mix, and contract terms.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening mix, Year 1	$6.25M	$839k	$108k	86.6%	$5.30M	Above break-even, with the thinnest cushion.
Base case mix, Year 3	$10.62M	$1.22M	$114k	88.5%	$9.29M	Comfortably above break-even, even with higher staffing.
Full utilization mix, Year 5	$14.38M	$1.39M	$124k	90.4%	$12.87M	Largest cushion, if contract volume holds.

What breaks first if sales miss, yields slip, or soybean costs rise?

Stress test

Year 1 revenue sits far above the roughly $126,000 monthly break-even floor. The real risks are missed offtake, lower yields, and higher soybean, energy, freight, or compliance costs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from Year 1 forecast.	About $126,000/month	$6.12M cushion	Strong cushion, but it depends on the forecast mix.
Revenue shortfall	Year 1 sales revenue falls 20%.	About $126,000/month	$4.87M cushion	Missed offtake cuts room fast, even if break-even holds.
Fixed-cost increase	Monthly fixed overhead rises 15%.	About $143,000/month	$6.11M cushion	Extra payroll and admin lift the floor for break-even.
Margin pressure	Sales commissions and freight rise from 8% to 12% of revenue.	About $130,000/month	$6.12M cushion	Freight and commission pressure eat contribution margin first.
Combined pressure	Sales revenue falls 20%, fixed overhead rises 15%, and variable costs rise to 12% of revenue.	About $150,000/month	$4.85M cushion	Missed volume plus higher costs is the fastest squeeze.

What should you verify before signing the soybean processing lease and buying equipment?

Founder checklist

The plant only works if the site, supply, and buyers are in place before you sign the lease and buy equipment. Month 1 break-even on paper does not erase commissioning risk; check the $58K monthly fixed load, $595K Year 1 payroll, and $1.988M cash floor first.

1Site fitPre-lease fit

Confirm extraction, drying, purification, storage, lab testing, truck access, and utility loads all fit the site before you commit.

2Offtake$75.0M

Lock buyers that can absorb the Year 1 revenue plan so the forecast sales mix is not just a spreadsheet.

3Unit margin86.6% CM

Verify the mix still clears direct unit costs, sales commissions, and outbound logistics before you count on break-even.

4Throughput31k units

Check that equipment and staff can produce the Year 1 mix of oil, meal, isolate, lecithin, and meat base without bottlenecks.

5Cash floor$1.988M

Hold at least the modeled minimum cash, because raw inputs and ramp costs hit before output becomes steady.

6Fixed load$1.291M

Make sure early gross profit can carry the $58K monthly overhead and $595K Year 1 salaried payroll.