Concierge Service Break-Even: About $201K In Monthly Revenue

Fixed costs $119.6K/mo Year 1 base

Contribution margin 69.5% After variable costs

Break-even revenue $172.2K/mo Monthly target

Break-even timing Month 21 Model break-even

Break-even calculator

Use this to test whether monthly revenue covers variable expenses and fixed monthly costs.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before direct costs. $ Slow month Busy month Variable expenses These are direct costs that rise as client work rises, like vendors and support. $ Light costs Heavy costs

Money available to cover fixed costs $222,000 $300,000 revenue - $78,000 variable expenses

Margin ratio

74%

Covers fixed costs

$6,583 short

Fixed monthly costs This is the monthly cost base that profit has to cover first. $ Lean team Scaled team

Break-even chart Revenue Total costs

Which concierge service expenses are fixed, and which move with sales?

Cost classification

Break-even gets unreliable when overhead and delivery spend are mixed together. In the first year, fixed operating overhead is $36,500/month before payroll, while vendor, fulfillment, quality, processing, and support percentages move with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $12,000/month as fixed overhead from Month 1 through Month 60.	Spreading rent across each task and making margins look cleaner than they are.
Technology Infrastructure	Fixed	Use $8,500/month as fixed overhead within the relevant planning range.	Treating the platform base spend like it rises with every booking.
Third-Party Vendor Costs	Variable	Apply 12.0% of revenue in the first year, falling to 8.0% by the fifth year.	Treating travel reimbursements, contractor support, and booking fees like overhead.
Service Fulfillment Costs	Variable	Apply 8.0% of revenue in the first year, falling to 6.0% by the fifth year.	Leaving errand labor and service handling out of contribution margin.
Payment Processing Fees	Variable	Apply 3.5% of revenue in the first year, falling to 2.5% by the fifth year.	Modeling card fees as a flat monthly software bill.
Customer Success & Support	Variable	Apply 4.0% of revenue in the first year, falling to 3.0% by the fifth year.	Ignoring support load as active customers and billable hours rise.
Payroll by Staffing Step	Semi-fixed	Add salary blocks as headcount steps up, including 3 lifestyle managers and 1 operations manager in the first year.	Assuming payroll grows smoothly instead of jumping when capacity is added.
Online Marketing Budget	Semi-variable	Plan $240,000 in the first year against a $480 customer acquisition cost.	Treating acquisition spend as pure overhead when it changes with customer volume.

How does break-even change from a lean launch to a full-service concierge setup?

Scenario table

Break-even climbs fast as the concierge setup adds payroll and marketing, even while variable costs improve. The lean case needs about $201k a month, the base case about $382k, and the full-service case about $621k.

Planning assumptions only; real results will move with pricing, staffing, and client mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch concierge	$200,899	$61,274	$139,625	69.5%	$0	Best for proof; fixed-cost coverage is thin.
Base scale concierge	$382,095	$99,345	$282,750	74.0%	$0	Best fit for repeatable fulfillment if demand stays steady.
Full-service concierge	$621,338	$133,588	$487,750	78.5%	$0	Needs staffed programs and steady pricing power to stay safe.

What breaks the break-even plan for this concierge service?

Stress test

This plan has little room for error in Year 1. With no cushion at the $200,899 break-even level, a 10% rise in fixed costs or a 5-point jump in variable expenses pushes break-even above $216k, and a $180k month goes red.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change to Year 1 assumptions.	$200,899	$0 gap	No cushion; any miss cuts into cash.
Revenue shortfall	Monthly revenue falls to $180,000.	$200,899	$20,899 gap	A $180k month stays below break-even.
Fixed-cost pressure	Fixed costs rise 10% to $153,588.	$220,989	$40,989 gap	More overhead needs more sales just to hold even.
Margin pressure	Variable expenses rise from 30.5% to 35.5%.	$216,473	$36,473 gap	Heavier fulfillment eats margin fast.
Combined pressure	Revenue stays at $180,000 while fixed costs rise 10% and variable expenses rise to 35.5%.	$238,120	$58,120 gap	This is the hardest case; at $180k revenue the month loses about $37,488.

Can you prove paid demand before you sign the lease and hire the team?

Founder checklist

Test the math before you lock rent, payroll, or marketing spend. This model only works if paid demand lands near the Year 1 $480 CAC, service margin stays near 69.5%, and cash survives the -$975,000 trough in Month 20.

1Paid Demand$480 CAC

Validate you can buy a client at or below the Year 1 $480 CAC before you sign the lease, because weak paid demand makes every fixed cost harder to carry.

2Base Load$119.6K/mo

Add the $12,000 rent, core overhead, and Year 1 payroll together, and only commit if the monthly base fits the client volume you can actually sell.

3Service Margin69.5% CM

Keep the $199, $249, $299, and $599 plans only if vendor, fulfillment, QA, processing, and support costs still leave about 69.5% contribution margin.

4Attach Rate$430.95/mo

Confirm clients buy more than one service, because the first-year mix points to about $430.95 in monthly revenue per active customer.

5Billable Hours8 hrs/customer

Test whether each active customer can stay near 8 billable hours a month without hurting quality, and set contractor agreements before travel or event work starts.

6Cash CushionMonth 20

Keep enough reserve to absorb the Month 20 low point, because minimum cash falls to negative $975,000 before the model reaches break-even in Month 21.