Tennis Facility Break-Even Analysis: $855K Monthly Revenue

Fixed costs $40.0K/mo Non-payroll base

Contribution margin 76% After variable costs

Break-even revenue $92.2K/mo Monthly target

Break-even timing Month 14 Model break-even

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a tennis facility.

Lean Base Full

Monthly revenue Revenue sets the pool that can cover fixed overhead. $ Low revenue High revenue Variable expenses These rise with bookings, coaching, shop sales, and cafe sales. $ Lean costs Higher costs

Money available to cover fixed costs $128,575 $154,167 revenue - $25,592 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the overhead the facility must cover each month. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which tennis facility expenses are fixed, and which move with sales?

Cost classification

Break-even gets unreliable when fixed overhead and usage-based spending are blended. This model starts with $40,000 in monthly non-payroll overhead before wages, so small classification errors can move the break-even month.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease Payments	Fixed	Include the full $25,000 per month before calculating revenue needed to cover operations.	Ignoring the lease when testing whether Month 14 break-even is realistic.
Property Taxes	Fixed	Model the $5,000 monthly charge as overhead that does not rise with bookings.	Treating taxes as if they flex with court utilization.
Pro Shop Inventory Cost	Variable	Apply it to pro shop sales volume, starting at 5.0 in the first year assumption.	Using court bookings as the driver instead of pro shop sales.
Food & Beverage Supplies	Variable	Tie supplies to cafe sales volume, starting at 3.0 in the first year assumption.	Counting cafe revenue without the related supply drag.
Payment Processing Fees	Variable	Apply the first-year 2.5 assumption to processed revenue in the break-even model.	Forgetting fees on non-court revenue streams.
Utilities Electricity Water Gas	Semi-variable	Start with the $4,000 monthly base, then stress-test higher usage from lights, water, and climate control.	Assuming utility spend stays flat as visits rise.
Assistant Tennis Professional	Semi-variable	Link coaching support to session growth, while recognizing staffed capacity steps from 1.0 FTE to 2.0 FTE.	Treating all payroll as Variable; first-year staffing is largely committed at $356.5K.
General Maintenance & Repairs	Semi-fixed	Use the $2,000 monthly baseline, then add step reserves for court wear, netting, and lighting upkeep.	Treating court upkeep as only a one-time opening spend.

How does break-even move from a lean launch to a full tennis facility buildout?

Scenario table

Lean Year 1 stays below break-even because early revenue does not cover the fixed load. By Year 2 and Year 3, higher bookings, coaching, and membership fees lift the contribution margin and create a clear cushion above break-even.

Planning assumptions only; actual results will move with court use, staffing, and membership sales.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$77.9K	$14.4K	$74.3K	81.5%	-$10.8K	Still below break-even; Month 14 is the catch-up point.
Base case	$115.2K	$20.3K	$83.2K	82.4%	$11.8K	Above break-even now, so the club has a modest cushion.
Full operating case	$154.2K	$25.6K	$91.3K	83.4%	$37.3K	Well above break-even, with stronger cushion from higher utilization.

What breaks the break-even plan for this tennis facility?

Stress test

Year 2 is the first profitable year, but the cushion is only about $226K above the $926K break-even line. A 10% revenue dip still holds, but higher fixed costs or weaker margins can shrink that buffer fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to Year 2 assumptions.	$926K	$226K cushion	The plan clears break-even, but not by a wide margin.
Revenue shortfall	Revenue runs 10% below the Year 2 plan.	$926K	$111K cushion	Lower court use still works, but the buffer gets thin.
Fixed-cost rise	Fixed overhead climbs 10% to about $839K.	$1.02M	$134K cushion	Lease, payroll, and utilities leave less room for error.
Margin pressure	Contribution margin drops 4 points to 78.4%.	$973K	$179K cushion	Fee pressure or discounting can eat into operating room.
Combined pressure	Revenue falls 15%, fixed costs rise 10%, and margin slips to 78.4%.	$1.07M	$92K gap	Small misses stack fast and push the facility below break-even.

Is this tennis facility ready for the lease, hiring, and build spend before break-even is real?

Founder checklist

Don’t sign the lease or start the build until Year 1 demand and cash runway can carry the site. The model needs about $935K of Year 1 revenue, reaches breakeven in Month 14, and still needs $339K of minimum cash in Month 13.

1Demand Base$935K Y1

Verify the Year 1 volume plan for 10,000 court bookings, 3,000 coaching sessions, 2,000 pro shop sales, 5,000 cafe sales, and $250K membership fees, because that mix has to show up before break-even works.

2Lease Load$40.0K/mo

Check that the $25K monthly lease plus the rest of the fixed overhead can fit inside the operating base, since those fixed costs hit every month before variable profit helps.

3Unit Margin13.5%-15.5%

Confirm pro shop and cafe sales hold their margin after inventory, supplies, payment fees, and marketing, because weak unit economics will push the break-even date out.

4Staffing Ramp$356.5K/yr

Hire to the Year 1 staffing plan only if court use supports it, because payroll is already a large fixed load across the general manager, tennis pros, front desk, maintenance, shop, cafe, and marketing roles.

5Cash CushionMonth 13

Keep enough cash to cover the Month 13 trough, since the model shows a $339K minimum cash need before breakeven lands in Month 14.

6Opening Stack$490K capex

Verify funding for court resurfacing, lighting, clubhouse work, pro shop fixtures, cafe equipment, booking systems, security, landscaping, and initial marketing before opening, because these costs hit before revenue is stable.