Broadcast System Integration Break-Even: $78K Monthly Revenue

Fixed costs $56.8K/mo Payroll plus overhead

Contribution margin 73% After direct costs

Break-even revenue $77.9K/mo Monthly target

Break-even timing Month 8 Launch ramp

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even.

Lean Base Full

Monthly revenue Revenue sets the pool available to cover direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct costs like labor, materials, commissions, and travel that rise with project volume. $ Lower costs Higher costs

Money available to cover fixed costs $123,000 $164,000 revenue - $41,000 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a broadcast integration service?

Cost classification

Break-even works only if project-driven costs move with revenue and monthly capacity costs stay fixed. In the first operating year, fixed payroll and overhead set the hurdle, while labor, materials, commissions, and travel shape contribution margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Engineering payroll	Fixed	Treat first-year staff payroll as fixed capacity: $520,000 per year, or about $43,300 per month, before added headcount changes the run rate.	Modeling engineers as fully variable by project hides bench time and makes break-even look too easy.
Office, lab, software, insurance, fiber, marketing maintenance, accounting, and legal	Fixed	Use $13,500 per month as recurring overhead that must be covered before profit starts.	Leaving small monthly items out understates the monthly revenue target by a meaningful amount.
Contractor installation labor	Variable	Apply 12% of revenue in the first operating year because outside install labor rises with project volume.	Treating contractor labor as fixed overstates contribution margin when project count rises.
Consumables and cabling materials	Variable	Apply 5% of revenue in the first operating year for job-linked materials used during installs.	Counting pass-through equipment or materials as margin without matching direct spend inflates gross profit.
Sales commissions	Variable	Apply 6% of revenue in the first operating year because commissions move with closed work.	Budgeting commissions as a flat monthly amount misses the cash hit from larger bookings.
Travel and on-site expenses	Semi-variable	Use 4% of revenue in the first operating year, but review by project because trips, lodging, and site time do not scale perfectly.	Treating reimbursed travel as pure revenue without matching travel spend overstates project margin.
Support contract response coverage	Semi-fixed	Treat support coverage as step-based capacity; it rises when response commitments require more staffing or standby coverage.	Pricing retainers like pure margin ignores the staffing promise behind support commitments.

How does break-even shift from a lean retrofit to a full rollout?

Scenario table

Lean launch sits close to break-even because fixed labor is heavy. As support contracts and consulting grow, the margin improves and the cushion gets wider.

Planning assumptions only; these figures are model cases, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch: small studio retrofit	$79.3k	$21.4k	$56.8k	73%	$1.0k	Thin cushion; one slip can erase it.
Base case: steady facility integration	$164.0k	$41.8k	$75.2k	74.5%	$47.0k	Better coverage, but labor still needs control.
Full model: multi-room rollout with support contracts	$442.1k	$92.8k	$132.3k	79%	$217.0k	Scale gives the widest break-even cushion.

What breaks the break-even plan before Month 8?

Stress test

The first-year cushion is thin: contribution margin sits at 73%, so a delay in signed work can erase break-even fast. If fixed costs rise or direct spend runs hot, the plan can slip past break-even before Month 8, when it needs $624k of minimum cash.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$779k	$14k cushion	Thin cushion, so timing matters.
Revenue shortfall	First-year signed revenue lands 10% below plan.	$779k	$65k gap	A small delay wipes out the cushion.
Fixed-cost increase	Fixed costs rise 10% across payroll and overhead.	$856k	$63k gap	Higher fixed load pushes break-even up.
Margin pressure	Contribution margin falls from 73% to 60% as direct labor and travel rise.	$947k	$154k gap	A 13-point margin hit breaks the model fast.
Combined pressure	Revenue slips 10%, fixed costs rise 10%, and margin falls to 60%.	$1.04M	$249k gap	This pushes break-even past the Month 8 cash need.

What should you verify before signing the lease and buying major broadcast gear?

Founder checklist

Before you sign the lease or buy major broadcast gear, make sure signed backlog, deposit timing, staffing, and cash runway can carry you to Month 8 break-even. The model shows about $56.8K of monthly fixed load, $624K minimum cash, and $166.5K of planned capex.

1Backlog ProofMonth 8

Verify signed or near-signed work can support the Month 8 break-even path, because weak deposit timing will leave you carrying the launch burn.

2Fixed Burn$56.8K/mo

Keep rent, software, insurance, fiber, marketing, and accounting inside this monthly load, or break-even moves out fast.

3Margin Floor73% CM

Use contribution margin (CM) as the floor, since Year 1 variable costs take 27% of revenue and any overruns in labor, materials, commission, or travel hit break-even.

4Staffing Ramp4.5 FTE

Hold the Year 1 team at 4.5 full-time equivalents and $520K of annual wages until billable hours justify more payroll.

5Cash Runway$624K

Keep at least this much cash on hand through Month 8, because the model stays cash negative before break-even and payback takes 26 months.

6Capex Phasing$166.5K

Phase the equipment plan and lock vendor credit for cabling, consumables, freight, and subcontractors, with deposits tied to design, install, commissioning, and support milestones.