Thrifting Reseller Break-Even Analysis: Month 25 Revenue Plan

Fixed costs $1.1K/mo Core overhead

Contribution margin 83.5% After variable costs

Break-even revenue $1.3K/mo Revenue needed

Break-even timing Month 25 Model payback point

Break-even calculator

This calculator tests monthly revenue, variable expenses, and fixed monthly costs against break-even for a thrifting reseller.

Lean Base Full

Monthly revenue Revenue is the pool that covers direct costs and fixed overhead. $ Lower sales Higher sales Variable expenses These rise with each sale, like sourcing, fees, and shipping. $ Lower costs Higher costs

Money available to cover fixed costs $12,600 $15,000 revenue - $2,400 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to absorb. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which thrift-reselling expenses are fixed, and which move with sales?

Cost classification

Break-even gets unreliable when inventory, fees, and shipping are treated like rent. For this model, variable selling costs reduce contribution margin, while fixed overhead sets the monthly sales target.

Expense	Cost	Break-Even Treatment	Common Mistake
Inventory Sourcing Costs	Variable	Model as 10.0% of first-year revenue, falling to 7.0% by mature year.	Treating inventory buys as fixed overhead instead of sales-linked cost.
Cleaning and Minor Restoration	Variable	Apply 2.0% of first-year revenue, then 1.5% in later years.	Ignoring prep work that rises with more listed units.
Platform and Payment Processing Fees	Variable	Use 3.0% of first-year revenue, declining to 2.0% by mature year.	Using gross sales as contribution without deducting transaction fees.
Shipping and Packaging Materials	Variable	Use 1.5% of first-year revenue, declining to 0.8% by mature year.	Assuming packaging stays flat when order volume grows.
Storage Unit Rent	Fixed	Include $500 per month throughout the planning period.	Spreading rent across units and hiding the true monthly nut.
Utilities and Internet	Fixed	Include $150 per month as stable overhead.	Dropping small recurring bills from break-even math.
Website Hosting and Software Subscriptions	Fixed	Include $100 per month as baseline operating overhead.	Counting it as optional even though online sales need it monthly.
Operating Wages	Semi-fixed	Model in steps as headcount changes by year and role.	Treating payroll as fully variable with each order.

How does break-even move from a lean launch to a base year and a full build?

Scenario table

Break-even rises fast as fixed costs add rent, support, and marketing. The contribution margin stays strong, but the monthly sales target climbs from about $4.8k in a lean setup to about $10.8k in Year 1 and about $22.6k in Year 3.

Planning figures only: these scenario break-even levels are assumptions for decision-making, not guarantees of sales or profit.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$4,800	$792	$3,992	83.5%	$16	Near cash break-even; keep fixed spend light.
Base Year 1	$10,800	$1,782	$8,992	83.5%	$26	Still close to break-even, so overhead discipline matters.
Full Year 3	$22,600	$2,961	$19,617	86.9%	$22	Higher sales cover more overhead, but cushion stays thin.

What breaks the break-even plan for a thrifting reseller?

Stress test

This model gets fragile when sell-through slows or fees creep up. A 20% revenue drop or a 3-point margin squeeze can turn a small cushion into a $1.8k to $3.1k monthly gap, especially if storage grows before items move.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; this is the base case.	$10,768	$0 gap	This is the monthly floor to hold.
Revenue shortfall	Revenue falls 20% to about $8,615.	$10,768	$1,800 gap	Slow sell-through and markdowns can erase the cushion.
Fixed-cost pressure	Fixed costs rise by $1,000 a month.	$12,000	$1,232 gap	Storage or payroll creep pushes break-even higher fast.
Margin pressure	Variable expenses rise 3 points.	$11,200	$432 gap	Fees, shipping, and returns eat into contribution margin.
Combined pressure	Revenue falls 20%, margin drops 3 points, and fixed costs add $1,000.	$13,900	$3,100 gap	Markdowns, returns, and storage creep can push the shop below break-even.

Can this reseller hit break-even before you commit to a lease, extra hires, or bigger inventory buys?

Founder checklist

Use the Year 1 model as the gate. If sourcing cannot support about 155 orders a month at a $69.58 basket, with 16.5% variable load and about $8.8K in monthly fixed cost, do not lock in bigger commitments.

1Order Pace155 orders/mo

Verify sourcing and resale flow can hold this monthly volume, because that is the pace the Year 1 break-even math needs.

2Basket Value$69.58

Hold average order value near this level, and keep paid marketing within the Year 1 $15K budget until it does.

3Variable Load16.5%

Track sourcing, cleaning, fees, and shipping together at this share of revenue so contribution margin stays strong enough to fund growth.

4Fixed Cost$8.8K/mo

Keep monthly fixed costs near this level and delay the next hire until revenue can absorb the wage ramp, not before.

5Launch Spend$23K

Review launch capex before spending, because the initial inventory, website, studio, storage, and equipment build already tie up real cash.

6Cash Cushion$794K

Plan for the Month 25 cash trough, since the model shows minimum cash at this level before break-even lands.