Free tool for anyone planning a coworking centre
What will a new centre cost, and when does the money come back?
Enter the space, your fit-out and rent quotes, running costs, price per seat and how fast you expect to fill up. See the upfront cash, break-even occupancy and the month you get the money back.
Calculator
The space
About 50 sq ft per seat, or 20 seats per 1,000 sq ft.
Upfront, one time
Interiors, electrical, HVAC, cabling, branding.
Refundable at the end of the lease.
Every month
Team, power, internet, housekeeping, security, software.
Consumables, pantry, desk power.
Revenue and fill-up
What clients actually pay, after discounts.
The figures filled in are an illustrative centre, not a benchmark for any city. Replace them with your own quotes and plans.
The first 24 months
Estimates. Cumulative cash starts at minus the upfront cash and adds each month's operating contribution.
| Month | Occupancy | Seats filled | Operating contribution | Cumulative cash |
|---|---|---|---|---|
| 1 | 25% | 50 | −₹5,45,000 | −₹2.24 Cr |
| 2 | 30.5% | 60 | −₹4,40,000 | −₹2.29 Cr |
| 3 | 35.9% | 71 | −₹3,24,500 | −₹2.32 Cr |
| 4 | 41.4% | 82 | −₹2,09,000 | −₹2.34 Cr |
| 5 | 46.8% | 93 | −₹93,500 | −₹2.35 Cr |
| 6 | 52.3% | 104 | ₹22,000 | −₹2.35 Cr |
| 7 | 57.7% | 115 | ₹1,37,500 | −₹2.34 Cr |
| 8 | 63.2% | 126 | ₹2,53,000 | −₹2.31 Cr |
| 9 | 68.6% | 137 | ₹3,68,500 | −₹2.27 Cr |
| 10 | 74.1% | 148 | ₹4,84,000 | −₹2.22 Cr |
| 11 | 79.5% | 159 | ₹5,99,500 | −₹2.16 Cr |
| 12 | 85% | 170 | ₹7,15,000 | −₹2.09 Cr |
| 13 | 85% | 170 | ₹7,15,000 | −₹2.02 Cr |
| 14 | 85% | 170 | ₹7,15,000 | −₹1.95 Cr |
| 15 | 85% | 170 | ₹7,15,000 | −₹1.88 Cr |
| 16 | 85% | 170 | ₹7,15,000 | −₹1.81 Cr |
| 17 | 85% | 170 | ₹7,15,000 | −₹1.74 Cr |
| 18 | 85% | 170 | ₹7,15,000 | −₹1.66 Cr |
| 19 | 85% | 170 | ₹7,15,000 | −₹1.59 Cr |
| 20 | 85% | 170 | ₹7,15,000 | −₹1.52 Cr |
| 21 | 85% | 170 | ₹7,15,000 | −₹1.45 Cr |
| 22 | 85% | 170 | ₹7,15,000 | −₹1.38 Cr |
| 23 | 85% | 170 | ₹7,15,000 | −₹1.31 Cr |
| 24 | 85% | 170 | ₹7,15,000 | −₹1.24 Cr |
How it's calculated
All amounts before GST. Seats are counted as whole seats, rounded down each month.
- 1
Upfront cash
Area × fit-out per sq ft + seats × furniture and IT per seat + deposit
Everything you pay before opening. The deposit is refundable, but it is cash you can't use while the lease runs.
- 2
Fixed costs a month
Area × (rent + maintenance per sq ft) + other fixed costs
Costs that stay the same whether the centre is half full or full.
- 3
Contribution per seat
Revenue per occupied seat − variable cost per seat
What each paying seat adds towards the fixed costs.
- 4
Break-even occupancy
Fixed costs ÷ contribution per seat, rounded up, ÷ sellable seats
The share of seats that must pay for the centre to cover its monthly costs.
- 5
Monthly operating contribution
Seats filled that month × contribution per seat − fixed costs
Negative while the centre fills up, positive once it is above break-even.
- 6
Payback month
First month when −upfront cash + all contributions so far ≥ 0
When the cash put in is back. Shown with and without the refundable deposit.
A worked example
An illustrative 10,000 sq ft centre. The numbers are made up to show the method, not taken from a real operator or a city benchmark.
- Area and seats
- 10,000 sq ft, 200 sellable seats (50 sq ft a seat)
- Fit-out
- 10,000 × ₹1,500 = ₹1,50,00,000
- Furniture and IT
- 200 × ₹15,000 = ₹30,00,000
- Rent and maintenance
- 10,000 × (₹65 + ₹12) = ₹7,70,000 a month
- Security deposit
- 6 × ₹6,50,000 rent = ₹39,00,000 (refundable)
- Upfront cash
- ₹2,19,00,000
- Fixed costs a month
- ₹7,70,000 + ₹3,00,000 other = ₹10,70,000
- Contribution per seat
- ₹12,000 − ₹1,500 = ₹10,500
- Break-even
- ₹10,70,000 ÷ ₹10,500 = 101.9, so 102 seats, or 51%
- Once stable at 85% (170 seats)
- 170 × ₹10,500 − ₹10,70,000 = ₹7,15,000 a month
- Fill-up
- 25% in month 1 rising evenly to 85% in month 12
- Payback
- Month 42 including the deposit; month 36 without it
Assumptions to check
- Occupancy rises in a straight line from month 1 to the stable level, then stays there. Real fill-up is lumpier: one enterprise client can move it 20 points in a month.
- Rent, maintenance and other fixed costs start in month 1. If your landlord gives rent-free months for fit-out, the real payback is a little earlier.
- Prices and costs stay flat. Rent escalations, price increases and renewals are left out; recheck the numbers when they change.
- The deposit comes back at the end of the lease. Payback without the deposit shows the fit-out and furniture alone.
- Everything is an estimate from your inputs. Use quotes from contractors and the landlord before you commit.
Questions about setup cost and payback
How much does it cost to start a coworking space in India?
Is coworking profitable?
Why is the payback shown twice?
Is operating contribution the same as profit?
Should the numbers include GST?
Do you store what I enter?
Plan the centre here. Run it in rivonOS.
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