Business Coaching Break-Even: $346K Monthly Revenue Target

Fixed costs $24.3K Monthly base

Contribution margin 75% After variable costs

Break-even revenue $32.4K Monthly revenue target

Break-even timing Month 32 Model payback point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a business coaching model.

Lean Base Full

Monthly revenue Higher revenue gives more room to cover fixed costs. $ Low sales High sales Variable expenses These are direct delivery and client costs that rise with sales. $ Low costs High costs

Money available to cover fixed costs $45,750 $61,000 revenue - $15,250 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the model must absorb. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which business coaching expenses are fixed, and which move with sales?

Cost classification

Break-even gets cleaner when fixed bills stay separate from revenue-linked costs. In the first year, variable items run at 28% of revenue before paid ads, so misclassifying them can make Month 32 break-even look too early.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $2,500 per month in the fixed overhead line.	Spreading rent across clients and hiding the real monthly nut.
Utilities & Internet	Fixed	Use $400 per month unless the operating setup changes.	Treating normal internet service as usage-based for each client.
Insurance (General & Professional)	Fixed	Use $300 per month as baseline operating overhead.	Leaving it out because it is not tied to a session.
Legal & Accounting Services	Fixed	Use $700 per month in recurring fixed overhead.	Modeling it only as a one-time setup item.
Technology Subscriptions (CRM, Video, Client Tools)	Variable	Model at 4% of first-year revenue, then use the stated annual rates.	Treating all software as fixed when client tools scale with client count.
Performance-Based Coach Compensation	Variable	Model at 15% of first-year revenue as direct delivery expense.	Putting coach payouts in payroll even when pay follows client revenue.
Workshop & Retreat Materials/Venue	Variable	Model at 3% of first-year revenue for event-linked delivery costs.	Using a flat venue budget even when workshop volume changes.
Paid Ads	Semi-variable	Use the annual marketing budget cap and CAC to pace client acquisition.	Letting ad spend rise with leads without checking the budget ceiling.

How does break-even change as the coaching model moves from lean to full delivery?

Scenario table

Adding coaches and marketing lifts revenue capacity, but it also raises the fixed bill fast. So the break-even point jumps from a lean proof setup to a much larger base launch and an even bigger full delivery model.

Planning assumptions only; actual break-even will move with pricing, staffing mix, and sales pace.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo setup	$257k	$64k	$193k	75%	$0	Lean works for proof, but one weak sales month drops below break-even.
Base managed launch	$346k	$87k	$259k	75%	$0	This is the managed launch point, but it still needs steady pipeline volume.
Full delivery model	$882k	$172k	$709k	80.5%	$0	Only scale here after demand is proven; the fixed load is heavy.

What breaks first if bookings slip or costs creep up?

Stress test

The plan is most exposed to weak bookings and cost creep. At $346,000 in monthly revenue and a 75% contribution margin, even small misses in retention, paid customer acquisition cost (CAC), contractor help, or sales conversion can turn into a $26,000 to $67,000 gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$346,000	$0 cushion	Little room for any miss.
Revenue shortfall	Monthly bookings land 10% below plan.	$311,000	$26,000 gap	Weak retention or slow sales conversion cuts the cushion.
Fixed-cost pressure	Monthly fixed overhead rises 10%.	$380,000	$34,000 gap	Extra staff or overhead raises the monthly sales hurdle.
Margin pressure	Variable expense rises from 25% to 30%.	$370,000	$24,000 gap	More contractor support or travel eats contribution margin.
Combined pressure	Bookings fall 10%, fixed costs rise 10%, and variable expense rises to 30%.	$381,000	$67,000 gap	Weak retention, $1,000+ CAC, and contractor overuse can break cash.

Is the coaching pipeline ready before you sign the lease and hire ahead of demand?

Founder checklist

Don't add fixed costs until the pipeline can carry them. Here’s the quick test: prove $346K in monthly revenue, keep CAC near $1,000, and make sure scheduled coaching hours can support the current team before you sign the lease or add the senior coach.

1Pipeline Proof$346K/mo

Verify the sales funnel can reach $346K a month across Momentum Coaching, Accelerator Package, and Apex Partnership before you lock in rent.

2Margin Check75% CM

Keep variable costs near 25% so contribution margin stays around 75% and the Month 32 break-even path still works.

3Lease Load$24.3K/mo

Your recurring fixed load is about $24.3K a month, so the office only works if booked revenue clears that every month.

4Capacity Ramp1.5-10h

Track scheduled coaching hours by offer and don't hire the senior coach until the calendar stays full without the founder carrying every session.

5Cash Cushion$289K

Set aside enough cash for the $51K capex stack and the $289K minimum cash cushion needed to reach break-even.

6Launch CAC$1K CAC

Keep Year 1 acquisition near $1,000 and the $20K launch marketing budget so paid demand does not outrun the model.