Sunglasses Store Break-Even Analysis: $216K Monthly Revenue

Fixed costs $17.6K Overhead + payroll

Contribution margin 81.7% After variable costs

Break-even revenue $21.6K Monthly target

Break-even timing Month 26 Launch ramp

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when the store covers overhead.

Lean Base Full

Monthly revenue Higher sales create more room to cover fixed overhead. $ Slow month Peak month Variable expenses Use costs that rise with sales, like wholesale stock and card fees. $ Light costs Heavy costs

Money available to cover fixed costs $64,216 $78,600 revenue - $14,384 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to cover. $ Lean overhead High overhead

Break-even chart Revenue Total costs

Which sunglasses store expenses are fixed, and which move with sales?

Cost classification

Break-even only works if each expense is put in the right bucket. Treat monthly overhead as fixed, sales-linked charges as variable, and staffing jumps as semi-fixed so the Month 26 break-even target stays credible.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Rent	Fixed	Use $4,000 per month as baseline overhead from Month 1 through Month 60.	Reducing rent per sale instead of testing enough gross profit to cover it.
Store Insurance	Fixed	Use $200 per month as recurring overhead in the break-even base.	Dropping small fixed bills because they look immaterial alone.
POS & Inventory Software	Fixed	Use $150 per month as operating overhead, separate from payment fees.	Mixing software subscription fees with card processing charges.
Wholesale Inventory Cost	Variable	Apply 12.0% of sales in the first year, falling to 10.0% by the fifth year.	Treating initial inventory stock as monthly overhead instead of a launch cash need.
Inventory Shipping & Handling	Variable	Apply 1.5% of sales in the first year, falling to 1.0% by the fifth year.	Leaving inbound freight out of contribution margin.
Sales Commissions	Variable	Apply 3.0% of sales in the first year, falling to 2.5% by the fourth year.	Counting commissions as fixed payroll even though they rise with sales.
Payment Processing Fees	Variable	Apply 1.8% of sales in the first year, falling to 1.5% by the fourth year.	Using gross sales as contribution before card fees.
Store Staffing	Semi-fixed	Model salaries in steps as full-time equivalent coverage rises with store volume.	Assuming payroll grows smoothly with each sale instead of jumping when hours expand.

How do lean, base, and full store setups change break-even for a sunglasses shop?

Scenario table

Lean keeps payroll lighter, so break-even stays lower. As the store adds staff and shifts to a richer product mix, fixed costs rise and the monthly break-even point moves up from about $21.6k to about $31.6k.

Planning assumptions only; real break-even will move with traffic, mix, discounts, and wage pressure.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$21,600	$3,953	$17,630	81.7%	$17	Lowest cash risk, but one weak month can slip below break-even.
Base growth	$26,700	$4,406	$22,255	83.5%	$39	Core target: revenue just clears fixed cost, so discipline matters.
Full growth	$31,600	$4,740	$26,880	85.0%	-$20	Higher sales help, but staffing pressure still keeps the cushion thin.

What breaks the sunglasses store's break-even plan?

Stress test

At the base case, monthly break-even revenue is $21,600 on $17,630 of fixed costs. The weak spots are slower weekday traffic, rent or wage inflation, and markdowns or shrink that eat margin.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$21,600	$0 gap	No cushion; traffic softness hits fast.
Revenue shortfall	Monthly sales fall 10%.	$23,400	$1,800 gap	A small traffic drop turns into loss.
Fixed-cost pressure	Fixed costs rise 10%.	$23,700	$2,100 gap	Rent or wages push the store above plan.
Margin pressure	Variable expenses rise 3 points to 21.3%.	$22,400	$800 gap	Markdowns or shrink eat the cushion.
Combined pressure	Sales fall 10%, fixed costs rise 10%, and variable expenses rise 3 points.	$25,700	$4,100 gap	Seasonality plus cost creep makes break-even fragile.

Can this sunglasses store clear break-even before the lease, inventory, and hiring commitments lock in?

Founder checklist

Yes, but only if the site can pull steady traffic, the opening build stays within the $83K capex plan, and the store can cover $17.63K in monthly fixed load before owner draw. The cash plan still has to survive a $576K trough in Month 28.

1Foot traffic445/week

Verify the site can draw about 445 visits a week in Year 1, because a $4,000 rent only works if weekdays still feed the Friday-to-Sunday spike.

2Build budget$83K

Confirm the opening build fits the $83K capex plan and the $17.63K monthly fixed load it creates, because that burden lands before owner draw.

3Margin check81.7% CM

Verify each sales dollar keeps 81.7 cents after 12.0% wholesale cost, 1.5% shipping, 3.0% commissions, and 1.8% processing, because that margin pays the rent.

4Weekend staff3 FTE

Plan 3 full-time-equivalent people on the floor, since Friday, Saturday, and Sunday traffic hits 80, 120, and 90 visitors in Year 1 and peak days drive conversion.

5Cash cushion$576K

Protect cash for the Month 28 trough, because minimum cash reaches $576K and payback takes 48 months, so the business needs a long runway.

6Launch sales$21.6K/mo

Test whether the store can reach about $21.6K in monthly sales before owner draw, and set reorder and markdown rules early so aging stock does not erase the margin.