Stand-Up Comedy Break-Even Analysis: Month 2 Threshold

Fixed costs $29.5K/mo Core overhead

Contribution margin 87% After variable costs

Break-even revenue $34.0K/mo Monthly target

Break-even timing Month 2 Model crosses here

Break-even calculator

Use this calculator to test monthly revenue against variable expenses and fixed monthly costs.

Lean Base Full

Monthly revenue Revenue sets the margin left to cover fixed costs. $ Lower sales Higher sales Variable expenses These rise with tickets, food, merch, and show activity. $ Lower cost Higher cost

Money available to cover fixed costs $85,491 $111,033 revenue - $25,542 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead base fixed costs must cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a live comedy venue?

Cost classification

Break-even is only useful if each expense lands in the right bucket. Treat rent as fixed, but keep food, merchandise, performer fees, and usage-driven spend tied to sales volume.

Expense	Cost	Break-Even Treatment	Common Mistake
Venue Lease/Rent, $20,000/month	Fixed	Include as recurring monthly overhead in the break-even base.	Treating rent as a per-show charge.
Utilities, $3,000/month	Semi-variable	Keep the base amount in fixed overhead, then flex usage with show volume.	Leaving higher room use out of the model.
Security Services, $2,000/month	Semi-fixed	Model as a monthly base that can step up when event count rises.	Assuming security stays flat at higher attendance.
Payroll, $302,500 in the first year	Semi-fixed	Use planned staffing as overhead, then add labor steps as hours and coverage expand.	Spreading all payroll evenly across each ticket sold.
Food & Beverage Inventory, 10.0% in the first year	Variable	Tie directly to food and beverage orders in contribution margin.	Counting inventory as fixed overhead.
Merchandise Inventory, 1.0% in the first year	Variable	Match inventory expense to merchandise units sold.	Forecasting merchandise profit without unit-linked inventory.
Performer Fees & Booking, 7.0% in the first year	Variable	Apply against show revenue so contribution reflects talent spend.	Putting booking fees below the break-even line.
Marketing & Advertising, 1.5% in the first year	Semi-variable	Separate recurring promotion from campaigns that rise with ticket goals.	Burying launch ad spend in fixed overhead.

How does break-even shift from a lean launch to a full-scale comedy room?

Scenario table

Lean uses the Year 1 plan, so fixed costs weigh more on each dollar of sales. By Year 3 and Year 5, higher ticket, bar, merch, and event income spread those costs better, so the break-even cushion improves.

Planning assumptions only; actual results will move with turnout, bar spend, and booked events.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$111.0k	$21.6k	$58.6k	80.5%	$30.8k	Above break-even, but the cushion is still thin.
Base club-room	$183.3k	$32.3k	$66.7k	82.4%	$84.3k	Solid cushion; this is the steadier break-even setup.
Full-scale private-event run	$271.8k	$42.4k	$69.0k	84.4%	$160.3k	Best cushion here, with the lowest break-even risk.

What breaks first if attendance slips or costs rise?

Stress test

Weak attendance is the first break point, because ticket sales and food-and-beverage orders both feed the same cushion. Fixed rent, payroll, and performer fees sit on top, so small misses can erase the buffer fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$756,000	$576,000 cushion	Base plan clears break-even, but the buffer is modest.
Revenue shortfall	Cut show tickets and F&B orders 50%.	$756,000	$54,000 gap	Low attendance pushes the room under break-even.
Fixed-cost increase	Move the three half-time roles to full-time.	$828,000	$504,000 cushion	Payroll step-up eats the cushion fast.
Margin pressure	Raise performer fees & booking from 7.0% to 8.0%.	$765,000	$567,000 cushion	A 1-point fee bump cuts contribution by about $13,300.
Combined pressure	Cut show tickets and F&B orders 50%, raise performer fees to 8.0%, and move the three half-time roles to full-time.	$838,000	$135,000 gap	Demand shock plus cost creep breaks the cushion.

What must you verify before you sign the room and fund the stand-up comedy build-out?

Founder checklist

Here’s the quick math: the plan carries about $54.7K in monthly fixed burn and $605K in build-out spend, so the room has to sell early and stay full. If pre-sales can’t support 18,000 tickets and 14,000 F&B orders, don’t lock the lease yet.

1Demand Proof18,000 / 14,000

Verify the room can support 18,000 Year 1 tickets and 14,000 F&B orders, because the break-even case depends on that traffic showing up.

2Fixed Burn$54.7K/mo

Compare the $20,000 base rent with the full monthly fixed burn before you sign, because the room has to carry more than the lease.

3Direct Margin86.7% CM

Test the $35 starting ticket price and keep performer fees, inventory, and marketing near plan so contribution margin does not slide.

4Payroll Ramp$302.5K/yr

Stage hiring against the Year 1 wage plan so the half-time server, bartender, and security roles do not turn into full-cost drag too early.

5Cash Cushion$544K Month 7

Keep the minimum cash through Month 7 and separate the $605K capex from operating break-even, or cash can get tight before the model settles.

6Launch Pre-sellMonth 2

Pre-sell enough dates before opening to protect the Month 2 break-even target, because walk-up traffic alone is not a safe plan.