AML Compliance Service Break-Even: ~$51k Monthly Revenue

Fixed costs $11.2K/mo Fixed overhead base

Contribution margin 70.5% After variable costs

Break-even revenue $15.9K/mo Revenue cover point

Break-even timing Month 8 Cash break-even

Break-even calculator

See how monthly revenue, variable expenses, and fixed costs move the break-even point for an AML compliance consulting firm.

Lean Base Full

Monthly revenue Revenue sets the pool that covers fixed costs after variable costs come out. $ Low revenue High revenue Variable expenses Direct delivery and sales costs that rise with each new client. $ Low cost High cost

Money available to cover fixed costs $27,617 $49,500 revenue - $21,883 variable expenses

Margin ratio

56%

Covers fixed costs

$4,416 short

Fixed monthly costs Monthly overhead the business must cover before profit starts. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which anti-money laundering compliance service expenses are fixed and which move with sales?

Cost classification

Break-even works only if payroll capacity, usage-based tools, and fixed overhead are separated. In this model, Month 8 break-even depends on treating staff additions as capacity steps, not as fully variable delivery expense.

Expense	Cost	Break-Even Treatment	Common Mistake
CEO / Lead AML Consultant payroll	Semi-fixed	$180,000 annual salary covers base delivery capacity before more senior delivery staff are needed.	Treating founder delivery capacity as free.
Senior AML Consultant payroll	Semi-fixed	$140,000 annual salary, with 0.5 FTE in the first year, steps up as workload supports more capacity.	Hiring full-time before the client load supports it.
AML Analyst payroll	Semi-fixed	Starts in Month 13 at an $85,000 annual salary, so it should enter break-even after launch-year demand is proven.	Adding analyst capacity before onboarding is repeatable.
Third-Party Software Licensing & Tools	Variable	Model as 8.0% of first-year revenue, falling to 6.0% in the mature year as tool efficiency improves.	Treating usage-based tools as fixed overhead.
Subcontractor & Specialist Fees	Variable	Model as 12.0% of first-year revenue, falling to 7.0% as internal delivery capacity grows.	Underpricing specialist review time.
Professional Liability Insurance	Fixed	Include $1,200 per month from Month 1 through Month 60 in monthly overhead.	Leaving required insurance out of break-even overhead.
Professional Development & Certifications	Fixed	Include $1,500 per month as recurring overhead tied to service quality and compliance credibility.	Cutting training that protects delivery quality.
Marketing & Business Development	Semi-variable	Include the $48,000 first-year budget plus the 6.0% first-year revenue-linked selling expense.	Counting leads without customer acquisition cost.

How does break-even shift from a lean anti-money laundering compliance pilot to full-scale delivery?

Scenario table

As the firm adds staff, tools, and sales support, fixed costs rise faster than the first-year revenue base. So the lean case is a demand check, the base case tests team buildout, and the full case only works with repeatable retainers.

Planning cases, not guarantees; actual results will move with client mix, hiring pace, and delivery efficiency.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean AML pilot	$49.5k	$14.6k	$36k	70.5%	-$1.1k	Just below break-even, so this is a demand test.
Base team buildout	$113.5k	$30.1k	$60.6k	73.5%	$22.8k	Clears break-even and gives a modest cushion for hiring.
Full-scale retainer delivery	$483k	$92.7k	$124.3k	80.8%	$265.9k	Strong cushion on paper, but it depends on repeatable delivery.

What breaks the AML compliance break-even plan?

Stress test

The plan is most exposed to slower client wins, then to cost creep in software, subcontractors, and overhead. At the base case, break-even is about $511,000 a month, so there is little room for a soft launch or delayed onboarding.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Base case holds at $360,000 fixed overhead and 70.5% contribution margin.	$511,000	$0 cushion	No cushion, so timing matters.
Revenue shortfall	Monthly revenue falls 15% to $421,000.	$511,000	$90,000 gap	Sales softness leaves a clear monthly hole.
Fixed-cost increase	Fixed overhead rises 10% to $396,000.	$562,000	$67,000 gap	Overhead creep lifts the break-even target fast.
Margin pressure	Contribution margin slips 5 points to 65.5%.	$550,000	$55,000 gap	Higher software or subcontractor cost erodes cushion.
Combined pressure	Revenue drops to $421,000, margin to 65.5%, and fixed overhead to $396,000.	$605,000	$184,000 gap	That mix drives about a $120,000 monthly operating loss.

Can you prove enough AML work before you lock in hires and software?

Founder checklist

Don’t lock in full-time hires or long software contracts until signed anti-money laundering (AML) work can support about $51K a month and customer acquisition cost (CAC) stays near $2.4K. The model hits its cash low at Month 8, with a $647K minimum cash need, so demand, delivery, and cash all have to hold at once.

1Signed Pipeline$51K/mo

Confirm booked AML work can get near this monthly run rate before you add permanent staff, because break-even only holds if demand shows up early.

2Fixed Load$32.0K/mo

Keep rent, insurance, tech, certifications, legal, and base payroll near this level, or the service margin has to work much harder just to cover overhead.

3Pricing Margin70.5% CM

Run Year 1 rates at $225, $200, $185, and $175 per hour and keep variable costs near 29.5%, so the contribution margin stays strong enough to fund growth.

4Billable Hours32/8/24/16 hrs

Verify the team can deliver these Year 1 billable hours by service line, and only approve software if it lifts throughput enough to protect that capacity.

5Hiring RampMonth 13

Hold the analyst hire until demand is repeatable and contractor cover is in place, so permanent payroll and the 12% subcontractor base do not outrun sales.

6Cash Cushion$647K / Month 8

Keep cash above the model floor through Month 8, because that is the low point before break-even and it is where a thin runway can break the plan.