Surplus Military Vehicle Break-Even Analysis: $66K Monthly Revenue

Fixed costs $27.2K/mo Base overhead

Contribution margin 80.5% After variable costs

Break-even revenue $66.4K/mo Monthly target

Break-even timing Month 2 Launch payback

Break-even calculator

Use this to test whether monthly sales cover direct costs and overhead for a surplus military vehicle dealer.

Lean Base Full

Monthly revenue Use the monthly sales run rate this business needs to cover direct costs and overhead. $ Lower sales Higher sales Variable expenses These rise with each sale, like sourcing, logistics, and reconditioning labor. $ Lower costs Higher costs

Money available to cover fixed costs $729,232 $883,917 revenue - $154,685 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the contribution margin has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which surplus military vehicle dealer expenses are fixed and which move with sales?

Cost classification

Break-even works only when monthly overhead, volume-linked costs, and step-up staffing are separated. Keep the $167,000 startup capex out of monthly operating break-even, or Month 2 break-even gets distorted.

Expense	Cost	Break-Even Treatment	Common Mistake
Inventory Acquisition and Sourcing Fees	Variable	Model at 12.0% of first-year revenue, or about $276,000 on $2.300 million of sales.	Treating vehicle sourcing as fixed overhead instead of a sales-linked input.
Logistics and Reconditioning Labor	Variable	Model at 7.5% of first-year revenue, or about $172,500 as unit volume rises.	Hiding prep overruns inside gross margin instead of tracking them by vehicle sold.
Secure Storage Facility Lease	Fixed	Use $12,500 per month across the relevant planning range.	Signing the lease before demand validation and locking in too much monthly burn.
Liability and Inventory Insurance	Fixed	Use $3,200 per month in operating break-even.	Underpricing stored inventory risk when higher-value vehicles sit on the lot.
Digital Marketing and SEO	Fixed	Use $5,000 per month unless the model adds campaign spend tied to sales volume.	Assuming qualified buyer leads are free after the site goes live.
Facility Utilities and Security	Semi-variable	Use the $2,800 monthly base, then track any usage spikes from yard activity.	Treating the full amount as fixed when shop hours and security needs rise.
Legal and Titling Services	Semi-variable	Use the $2,500 monthly base, with extra review time tied to completed transactions.	Forgetting that paperwork load rises with each titled vehicle sale.
Payroll	Semi-fixed	Use $26,250 per month in the first year, then step up when added full-time employees are hired.	Modeling staff as purely variable even though headcount changes in blocks.

How does break-even change across lean, base, and full setups for surplus military vehicle sales?

Scenario table

Break-even moves with fixed cost burden more than with sales alone. Lean cuts the monthly overhead, base clears Month 2, and full raises the break-even bar but can still earn more once volume is there.

Planning figures only; they show direction, not a guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean online-led yard setup	$160k	$29.6k	$46.4k	81.5%	$84k	Break-even sits near $57k/month, so fixed costs stay manageable.
Base yard-and-prep dealership	$192k	$37.4k	$53.5k	80.5%	$101k	Month 2 break-even holds with a solid cushion above the cutoff.
Full yard-and-restoration setup	$260k	$54.6k	$66.4k	79.0%	$139k	Higher staffing lifts the bar to about $84k/month, but profit stays strong.

What pushes this surplus military vehicle dealer past break-even?

Stress test

Year 1 monthly revenue is about $191,667 versus break-even near $66,335, so the cushion is about $125,332. The main risk is slower turnover plus higher prep, transport, and insurance costs, because fixed-cost creep tightens break-even fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue or costs.	$66,335	$125,332 cushion	Year 1 clears break-even with a wide cushion.
Revenue shortfall	Monthly revenue drops $10,000 from slower inventory turnover.	$66,335	$115,332 cushion	The business still clears break-even, but the cushion shrinks.
Fixed-cost increase	Fixed overhead rises $10,000 a month.	$78,820	$112,847 cushion	Each extra $10,000 of overhead pushes break-even up fast.
Margin pressure	Variable load rises 1 point from 19.5% to 20.5%.	$67,201	$124,466 cushion	Prep, transport, or auction cost creep cuts margin.
Combined pressure	Monthly revenue drops $10,000, fixed overhead rises $10,000, and variable load rises 1 point.	$79,811	$101,856 cushion	Turnover and cost pressure work together to squeeze the cushion.

What should you verify before you sign the storage lease and start buying decommissioned vehicles?

Founder checklist

Don’t sign the lease or buy the first units until the pipeline, storage, insurance, and buyer demand all clear the math. The model reaches break-even in Month 2, but cash falls to about $810K, so the early-month dip has to be covered first.

1Inventory pipeline$12.5K/mo

Confirm enough titled vehicles and parts are lined up to justify the secure storage lease, or you'll pay for empty space.

2Insurance cover$3.2K/mo

Verify the liability and inventory policy can be bound before titled stock sits on site, because a gap can stop holding inventory.

3Buyer demand0.3% conv

Test whether site traffic and leads can turn into buyers at the Year 1 conversion rate before you spend $5,000 a month on digital marketing.

4Title flow$2.5K/mo

Map title and registration steps before you rely on legal and titling support, so sold units do not stall at handoff.

5Labor capacity7.5% of sales

Confirm hauling and mechanic coverage can handle the Year 1 logistics and reconditioning load, or inventory will stack up and slow sales.

6Cash runway$810K min

Only green-light the $167K capex set after storage demand is real, because the model's cash trough lands in Month 2.