Career Counseling Service Break-Even Analysis: $216K/Month

Fixed costs $16.8K/mo Payroll + overhead

Contribution margin 78% After variable costs

Break-even revenue $21.6K/mo Monthly revenue target

Break-even timing Month 9 Model break-even

Break-even calculator

If cash is tight, this calculator shows whether monthly revenue clears direct spend and fixed overhead.

Lean Base Full

Monthly revenue Revenue is the cash in from sessions and service packages before direct costs. $ Soft launch Scaled month Variable expenses Direct costs that rise with client volume, like marketing spend and software licenses. $ Tight spend Heavier spend

Money available to cover fixed costs $15,000 $22,000 revenue - $7,000 variable expenses

Margin ratio

68%

Covers fixed costs

$1,800 short

Fixed monthly costs Monthly overhead the margin must cover, including rent, base payroll, and admin tools. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which career counseling expenses stay fixed, and which move with client volume?

Cost classification

Break-even is reliable only when each expense follows its real behavior. Fixed rent, percentage-based fees, and staffing steps hit the model differently as monthly client volume rises.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $2,500 per month through the relevant planning range, regardless of monthly client count.	Spreading rent per client and making break-even look easier at low volume.
CRM & Scheduling Software Base Fees	Fixed	Use $300 per month as a base operating expense before contribution margin.	Treating the base platform fee like a per-session charge.
Accounting & Legal Services	Fixed	Use $500 per month in fixed overhead unless the service scope changes.	Removing it from break-even because it is not tied to client delivery.
Lead Career Coach / Founder Payroll	Fixed	Use the $100,000 annual salary at 1.0 FTE as recurring monthly overhead.	Counting founder labor as fully variable with each coaching session.
Third-Party Assessment Test Fees	Variable	Apply 5.0% of related revenue in the first year, falling to 3.0% by the mature year.	Modeling test fees as a flat monthly subscription instead of usage-linked.
Specialized Coaching Material Licenses	Variable	Apply 3.0% of revenue in the first year, falling to 2.0% by the mature year.	Ignoring material licenses and overstating contribution margin.
Annual Marketing Budget	Semi-variable	Separate committed spend from demand-driven spend; the budget rises from $15,000 in the first year to $100,000 in the mature year.	Treating all marketing as fixed or all marketing as variable.
Coach, Admin, and Marketing Coordinator Staffing	Semi-fixed	Add payroll in FTE steps as capacity rises, such as Coach 1 moving from 0.5 FTE to 1.5 FTE.	Making every payroll dollar move smoothly with client volume.

How does break-even shift across lean, base, and full career counseling setups?

Scenario table

Lean stays below break-even, base sits on it, and full gives you cushion; Year 1 mix implies about $423 blended client revenue, which fits Month 9 break-even, Year 1 EBITDA of -$43K, and Year 2 EBITDA of $341K.

Planning only; actual results move with client mix, volume, and close rate.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo launch	$180K	$40K	$168K	78%	-$28K	Below break-even; the gap is still wide.
Base balanced case	$216K	$47K	$168K	78%	$0	At break-even; any miss pushes losses.
Full scaled services case	$260K	$57K	$168K	78%	$35K	Above break-even; the cushion can absorb slower months.

What breaks the break-even plan for this career counseling service?

Stress test

The plan breaks if demand slips, CAC climbs above $150, or hiring lands before recurring bookings do. Here’s the quick math: a 10% revenue miss creates about a $17K gap, and cost pressure pushes break-even higher fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$216K	$0 cushion	There’s little room for CAC creep before break-even slips.
Revenue shortfall	Revenue lands 10% below break-even at about $194K.	$216K	$17K gap	Slower conversion or CAC above $150 cuts the cushion fast.
Fixed-cost increase	Fixed costs rise to $181K.	$232K	$16K gap	Hiring before recurring bookings support payroll pushes break-even out.
Margin pressure	Variable expenses rise from 22% to 27%.	$230K	$14K gap	Higher CAC or low package attach rate squeezes contribution.
Combined pressure	Revenue falls to $194K, variable expenses rise to 27%, and fixed costs rise to $181K.	$233K	$39K gap	Slow conversion, higher CAC, and early hiring create about a $39K monthly loss.

What should this career counseling service verify before it signs a lease or adds another coach?

Founder checklist

Treat this as a go only if the weighted client mix really delivers $423 per client, the funnel can reach about 51 clients a month, and you can fund the $860K Month 2 cash need. If any of those break, stay virtual, delay hiring, and hold the lease.

1Blended value$423/client

Verify the weighted mix of coaching, resume, interview, and assessment work still clears $423 per client, or break-even slips.

2Lead flow51 clients/mo

Check that your funnel and close rate can get you near 51 clients a month at a $150 CAC and $423 value, because weak demand kills the model fast.

3Fixed load$6.4K/mo

Keep monthly fixed overhead at the $3.9K base and skip the $2.5K office rent unless in-person delivery clearly lifts bookings enough to pay for it.

4Contribution78% CM

Keep contribution margin (CM, the cash left after direct costs) near 78%, or payroll and overhead will squeeze too hard.

5Hire timingMonth 25

Keep intake, session prep, assessment delivery, and follow-up on the founder and first coach until the calendar proves the second coach is needed.

6Cash reserve$860K min

Keep that buffer intact because the model bottoms out in Month 2, reaches break-even in Month 9, and still shows a $43K Year 1 EBITDA loss.