5G Internet Service Provider Break-Even Analysis: 2,539 Subscribers

Fixed costs $12.3K/mo Base overhead

Contribution margin 75% After variable costs

Break-even revenue $157.4K/mo Monthly target

Break-even timing Month 17 Model turns positive

Break-even calculator

Test monthly revenue, variable costs, and fixed overhead against break-even for a 5G internet provider.

Lean Base Full

Monthly revenue Revenue from subscribers and add-ons sets the margin available to cover fixed costs. $ Low sales High sales Variable expenses Direct network access, equipment, processing, and referral costs rise with each sale. $ Light costs Heavy costs

Money available to cover fixed costs $141,782 $182,500 revenue - $40,718 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs Rent, payroll, systems, and admin costs stay due each month. $ Lean overhead High overhead

Break-even chart Revenue Total costs

Which internet service expenses are fixed, and which move with subscriber volume?

Cost classification

If subscriber-linked spend is treated as fixed, break-even looks too low. Here, base overhead is stable, but network access, equipment, software, referrals, support hiring, and marketing CAC move as subscriber volume grows.

Expense	Cost	Break-Even Treatment	Common Mistake
Monthly fixed overhead	Fixed	Include $12,250 per month for rent, utilities, insurance, legal and accounting, core IT, billing base fee, and consulting.	Spreading overhead across too few subscribers and missing the true base burn.
Wholesale Network Access Fees	Variable	Model as 12.0% of revenue in the first year, declining to 8.0% by Year 5.	Calling network usage fixed when it rises with active customer traffic and revenue.
Customer Premise Equipment (CPE) Cost	Variable	Model Customer Premise Equipment, the customer device, as 7.0% of revenue in the first year.	Treating CPE subsidies as overhead instead of subscriber-linked acquisition and setup spend.
Payment Processing Fees	Variable	Use 2.0% of revenue in the first year, falling to 1.5% by Year 5.	Leaving card and billing fees out of contribution margin.
Per-Subscriber Software Licenses	Variable	Use 2.5% of revenue in the first year, declining to 1.5% by Year 5.	Booking licenses as fixed software overhead when each active subscriber adds load.
Customer Referral Bonuses	Variable	Apply 1.5% of revenue in the first year, dropping to 0.5% by Year 5.	Ignoring referral spend because it sits outside paid media.
Support Payroll	Semi-fixed	Step up staffing as volume grows: 2 customer support representatives and 1 technical support specialist in Year 1.	Assuming support payroll scales smoothly instead of hiring in chunks.
Annual Marketing Budget	Semi-variable	Start with $500,000 in Year 1 and tie efficiency to $150 customer acquisition cost.	Treating marketing as pure fixed spend while CAC changes with subscriber growth.

How does break-even shift from a lean launch to a full-capacity 5G internet plan mix?

Scenario table

The break-even bar climbs fast as the network scales. Better plan mix lifts margin, but payroll and marketing push fixed costs up faster, so the monthly revenue target rises from about $157k to $701k.

Planning case values only; actual results will move with subscriber mix, churn, and network costs.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$157,444	$39,361	$118,083	75.0%	$0	Thin cushion; any shortfall turns into losses fast.
Base growth case	$244,208	$54,458	$189,750	77.7%	$0	Better mix helps, but fixed overhead still drives the hurdle.
Full-capacity case	$701,381	$108,714	$592,667	84.5%	$0	Best margin here, but scale keeps the revenue target very high.

What breaks first if 5G subscriber growth slows or per-subscriber costs rise?

Stress test

At $157,444 monthly revenue, the model only clears $118,083 of fixed cost at a 75.0% contribution margin. Slow signups or any rise in network access, equipment, or software fees can erase the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$157,444	$0 gap	No cushion; the plan only clears fixed cost at break-even.
Revenue shortfall	Monthly revenue runs 10% below the break-even run rate.	$157,444	$15,744 gap	A small miss leaves a fast monthly hole.
Fixed-cost pressure	Fixed overhead rises by $10,000 per month.	$170,777	$13,333 gap	Every extra $10,000 of overhead needs $13,333 more revenue.
Margin pressure	Variable expenses rise 1 percentage point to 26% of revenue.	$159,572	$2,128 gap	Small fee creep adds a real monthly gap.
Combined pressure	Revenue runs 10% below plan, fixed overhead rises $10,000, and variable expenses rise 1 point.	$173,085	$31,385 gap	This is the harshest case, and cash can fall below the modeled low point.

What should the founder verify before signing the network build and launch commitments?

Founder checklist

Don’t lock in office, site, or network spend until the model can support 2,539 subscribers and a $62.01 blended ARPU. That points to about $157.4K in monthly revenue, and the plan still needs cash for a roughly -$426K dip before Month 17 break-even.

1Demand Base2,539 subs

Verify the service area can support 2,539 active subscribers, because that is the base needed to hit the modeled revenue run rate.

2ARPU Mix$62.01 ARPU

Check the mix of Basic at $55, Pro at $75, Business at $120, Static IP at $15, and Enhanced Security at $7, since revenue per customer drives the plan.

3Margin Stack75% CM

Confirm Year 1 wholesale network access at 12% and CPE at 7%, plus 6% in variable fees, so contribution stays near 75%.

4Fixed Load$76.4K/mo

Verify rent, utilities, insurance, software, consulting, and payroll fit a fixed burn near $76.4K a month before scale covers it.

5Support Ramp2 CS, 1 Tech

Make sure the opening team can run with 2 customer support reps and 1 technical support specialist, or service delays will slow growth.

6Launch Cash$500K / $150 CAC

Fund the Year 1 marketing budget and the modeled cash dip to about -$426K, because the business does not reach break-even until Month 17.