VR Golf Simulator Break-Even: $47K Monthly Revenue Target

Fixed costs $40.7K Monthly overhead

Contribution margin 81% After variable costs

Break-even revenue $50.2K Revenue target

Break-even timing Month 2 Launch ramp

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for an indoor VR golf facility.

Lean Base Full

Monthly revenue More monthly sales leave more room to cover fixed costs. $ Low sales High sales Variable expenses These are direct costs like card fees, food inventory, and promo spend. $ Low costs High costs

Money available to cover fixed costs $91,900 $97,979 revenue - $6,079 variable expenses

Margin ratio

94%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business must cover before profit. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even works only if fixed overhead stays separate from usage-driven expenses. In the first year, separating payroll from rent makes about $40,650 of monthly overhead visible before card fees, promotions, and inventory move with sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Rent Facility	Fixed	Load $15,000 per month into fixed overhead before volume math.	Treating rent as flexible when slow months still require payment.
Insurance	Fixed	Include $1,000 per month in baseline overhead.	Leaving it below the line and understating the sales target.
POS System & Software	Fixed	Include $300 per month as recurring software overhead.	Mixing fixed software fees with per-transaction card charges.
Utilities	Semi-variable	Start with the $2,500 monthly base, then watch usage as bay hours rise.	Modeling all utilities as fixed when longer operating hours can lift usage.
Credit Card Processing Fees	Variable	Apply 2.5% against revenue in each forecast year.	Using a flat monthly estimate instead of tying fees to sales.
Marketing & Promotions	Variable	Apply 3.0% of first-year revenue, declining to 2.0% by the mature year.	Locking promotions as fixed and missing the link to booking volume.
Food Beverage Inventory	Variable	Apply the modeled rate to food and beverage sales, starting at 8.0% in the first year.	Counting gross bar sales without the inventory needed to support them.
Golf Simulator Attendant	Semi-fixed	Model staffing in steps, from 2.0 FTE in the first year to 3.0 FTE by the mature year.	Burying payroll inside rent, which hides the $40,650 monthly overhead base.

How does break-even change across lean, base, and full VR golf simulator launches?

Scenario table

Lean is close to break-even because fixed payroll and facility costs absorb most of Year 1 margin. By Year 3 and Year 5, higher event and food-and-beverage sales spread that fixed load and widen the cushion.

Scenario figures are planning assumptions, not guarantees, and monthly values are plan-year averages.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch: Year 1	$55,833	$7,817	$40,650	86.0%	$7,367	Near break-even; small traffic misses can erase cushion.
Base case: Year 3	$97,979	$18,079	$46,817	81.6%	$33,083	Above break-even with a wider cushion, but staffing still matters.
Full launch: Year 5	$134,583	$23,600	$49,233	82.5%	$61,750	Strongest cushion if event packages and food-and-beverage sales scale faster than staffing.

What breaks the break-even plan for a VR golf simulator?

Stress test

The Year 1 plan clears break-even by about $102,800 a year, or $8,600 a month. A 15% revenue miss, a $7,400 monthly fixed-cost jump, or lower margin from food, card, and promo costs can wipe that cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$567,200	$102,800 cushion	Monthly revenue below about $47,300 starts burning the cushion.
Revenue shortfall	Year 1 revenue falls 15% to $569,500.	$567,200	$2,300 cushion	That leaves almost no room for another miss.
Fixed-cost pressure	Monthly fixed costs rise by $7,400.	$670,500	$500 gap	Rent, payroll, or utilities can break the model.
Margin pressure	Food and beverage inventory rises by 2 points, pulling contribution margin to 84%.	$580,700	$89,300 cushion	Waste, fees, or discounting cut the cushion fast.
Combined pressure	Revenue falls 15%, monthly fixed costs rise by $7,400, and contribution margin slips to 84%.	$686,400	$116,900 gap	The plan needs stronger-than-forecast sales to stay above break-even.

Can this VR golf simulator clear break-even before you sign the lease and buy the simulators?

Founder checklist

Treat this as a go/no-go gate: only sign the lease and buy equipment if Year 1 demand, pricing, and staffing hold up against the model. The plan needs 6,000 standard rentals, 4,000 peak rentals, 50 events, and enough cash to absorb the $720K build and $285K Month 5 floor.

1Demand Base6,000 / 4,000 / 50

Verify Year 1 can באמת support 6,000 standard bay rentals, 4,000 peak rentals, and 50 event packages at $40, $60, and $1,500, because that is the top line the model depends on.

2Fixed Load$40.65K/mo

Confirm you can carry $22.15K of monthly facility and operating overhead plus $18.5K of payroll equivalent, before variable costs, or break-even will slip.

3Contribution93.3% CM

Check that food inventory, merch, card fees, and promo costs stay near plan; Year 1 revenue of $670K only works if variable costs stay around 6.7%.

4Team Load5.5 FTE

Use the Year 1 crew of 1 general manager, 1 assistant manager, 2 attendants, and 1.5 bartender server FTEs only if they can cover peak tee times and event nights without heavy overtime.

5Cash Cushion$1.005M

Do not lock the lease or simulator order unless cash covers the full $720K buildout and still leaves the $285K Month 5 floor; the model needs both.

6Launch TimingMonth 2

Treat the Month 2 breakeven path as the test, and hold back spend if bookings slip after opening, because rent and payroll will hit before the ramp catches up.