Bridge Loan Financing Break-Even: $362K Monthly Revenue Target

Fixed costs $102.5K/mo Launch burn base

Contribution margin 28.4% After variable costs

Break-even revenue $361.0K/mo Monthly target

Break-even timing Month 20 Forecast crossover

Break-even calculator

Use this calculator to test monthly revenue, direct costs, and overhead against break-even for a short-term bridge lender.

Lean Base Full

Monthly revenue Revenue has to cover direct costs before anything is left for fixed overhead. $ Low run rate High run rate Variable expenses Use direct costs that move with loan volume, like commissions and servicing. $ Low direct cost High direct cost

Money available to cover fixed costs $225,000 $375,000 revenue - $150,000 variable expenses

Margin ratio

60%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead and payroll the margin must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with loan volume?

Cost classification

Break-even only works if funded-capital expenses move with loan volume and base overhead stays fixed. Here, broker commissions and warehouse line interest flex with volume, while rent, software, and insurance set the monthly hurdle.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent ($12,000/month)	Fixed	Include the full monthly rent in fixed overhead from Month 1 through Month 60.	Spreading rent across funded loans and understating the Month 1 cash hurdle.
Loan Origination Software ($4,500/month)	Fixed	Treat as a recurring platform charge unless the model adds usage tiers.	Making the software charge rise with every loan when the assumption is flat.
Legal Retainer Fees ($8,000/month)	Semi-fixed	Keep the base retainer in overhead, then step it up only when deal flow requires more legal capacity.	Classing all legal work as variable and hiding the monthly retainer burden.
Compliance Monitoring Services ($3,000/month)	Semi-fixed	Model the monthly base as overhead, with step increases tied to higher regulatory and portfolio monitoring load.	Waiting to add compliance capacity until after volume has already scaled.
Data and Credit Reporting Subscriptions ($2,500/month)	Fixed	Carry the subscription as stable monthly overhead for the relevant planning range.	Treating subscription access like a per-loan closing expense.
Broker Commissions (10.0% in Year 1)	Variable	Apply commissions to originated volume because the expense moves with loan production.	Putting commissions in fixed overhead and overstating margin at low volume.
Loan Servicing and Collection Fees (2.5% in Year 1)	Variable	Tie servicing and collection fees to active loan volume or revenue, based on the model driver used.	Leaving servicing flat while the loan book grows.
Warehouse Line Interest (6.5% in Year 1)	Variable	Move interest expense with funded capital, not with headcount or office overhead.	Treating funded loan principal as revenue instead of capital deployed.

How does break-even change from lean launch to base case and full scale for this bridge loan lender?

Scenario table

Break-even improves as funded balances grow because revenue rises faster than the cost stack. Month 20 is the key signal: Year 1 stays in the red, Year 2 is close to flat, and Year 3 turns positive.

Scenario figures are planning assumptions, not guarantees; funding mix, draw timing, and underwriting speed can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$193.7k/mo	$24.2k/mo	$216.8k/mo	87.5%	-$47.3k/mo	Still loss-making, so volume is the first test.
Base case	$467.3k/mo	$58.4k/mo	$413.6k/mo	87.5%	-$4.7k/mo	Near break-even; Month 20 is the key watchpoint.
Full scale case	$938.2k/mo	$103.2k/mo	$750.2k/mo	89.0%	$84.8k/mo	Break-even is cleared, so the model has cushion.

What breaks first if deal flow slows or funding costs rise?

Stress test

Deal flow and funding spread are the first pressure points. The model sits about $47k a month below break-even in Year 1, so a revenue dip, higher fixed overhead, or pricier warehouse lines can push Month 20 break-even further out.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$362,000/month	$47,000 gap	Year 1 is still about $47k a month below break-even.
Revenue shortfall	Funded loan revenue runs 10% below plan.	$362,000/month	$79,000 gap	Slower closes and delayed exits widen the monthly burn.
Fixed-cost pressure	Monthly fixed overhead rises 10% to about $112,800.	$398,000/month	$83,000 gap	Headcount and overhead growth lift the break-even line fast.
Margin pressure	Broker commissions and servicing fees run 1.5 points higher, with warehouse pricing above plan.	$382,000/month	$67,000 gap	Spread compression eats the cushion even if volume holds.
Combined pressure	Revenue runs 10% below plan, fixed overhead rises 10%, and funding costs stay 100 bps above plan.	$446,000/month	$163,000 gap	This is the fastest path to missing Month 20 break-even.

What should a bridge loan founder verify before signing the lease and scaling the team?

Founder checklist

Year 1 EBITDA is -$567K and break-even lands in Month 20, so don’t lock the lease or ramp spend until underwriting speed, rate spread, and Year 1 fees clear the test. The cash trough hits in Month 12, so reserve discipline matters.

1Underwriting speed1 officer

Prove one senior loan officer can qualify borrowers and turn files fast enough before the lease, because slow underwriting pushes revenue behind fixed cost.

2Lease load$12K/mo

Test whether $12K monthly rent is still needed before funding the line, because a fixed lease only helps if early volume fills the seats.

3Funding spread10.5%-14.0% / 5.5%-9.0%

Compare borrower rates to warehouse, private note, family office, institutional, and mezzanine costs, because the spread has to fund overhead and losses.

4Broker drag10.0% Year 1

Run Year 1 volume at the full 10.0% broker rate, because acquisition cost has to fit inside the loan margin before marketing scales.

5Platform build$85K + $4.5K/mo

Validate the $85K build, $4.5K monthly software load, and servicing plus compliance workflow with real loan files before ramp-up spend.

6Reserve cushion$47.6M floor

Set the reserve policy for the Month 12 cash trough, because the model needs about $47.6M minimum cash before break-even at Month 20.