Construction Consulting Break-Even: $67k Monthly Revenue Target

Fixed costs $16.2K/mo Core overhead

Contribution margin 75% After direct costs

Break-even revenue $80.3K/mo Monthly target

Break-even timing Month 22 Year 2 hit

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when a construction consulting firm reaches break-even.

Lean Base Full

Monthly revenue Revenue sets the pool that pays variable and fixed costs. $ Low demand Strong pipeline Variable expenses These rise with project work, travel, software, and training. $ Light direct cost Heavy direct cost

Money available to cover fixed costs $113,300 $147,100 revenue - $33,800 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Lean overhead Large overhead

Break-even chart Revenue Total costs

Which construction consulting expenses stay fixed, and which move with project volume?

Cost classification

Break-even gets cleaner when fixed overhead, revenue-linked costs, and staffing steps are split correctly. If you treat hiring or project assessments the wrong way, Month 22 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Carry $8,000 per month in fixed overhead from Month 1 through Month 60.	Spreading rent across projects and making margins look too high when volume is low.
Utilities	Fixed	Include $1,200 per month as steady overhead within the normal planning range.	Reducing utilities when project volume drops, even though the office still runs.
Business Insurance	Fixed	Include $800 per month as a recurring operating expense before break-even.	Treating insurance as optional until larger projects close.
Third-Party Technical Assessment Costs	Variable	Model at 8.0% of first year revenue, then use the forecast percentage by year.	Budgeting it as a flat vendor line instead of tying it to project revenue.
Specialized Software Licenses (Project Specific)	Variable	Model at 4.0% of first year revenue because it scales with project-specific work.	Mixing it with general admin software and overstating fixed overhead.
Marketing and Business Development Project Travel and Events	Variable	Use 10.0% of first year revenue, then step down with the forecast percentage.	Confusing project-related travel with the annual marketing budget.
Senior Project Manager	Semi-fixed	Add salary capacity in steps: 1.0 FTE in first year rising to 3.0 FTE by Year 5.	Treating the full salary as variable by hour when it changes by hiring step.
Consultant	Semi-fixed	Add this role after launch, starting at 1.0 FTE in Year 2 and rising to 4.0 FTE by Year 5.	Hiring ahead of signed workload and pushing the break-even point further out.

How does break-even change as this construction consulting firm moves from lean launch to full-service delivery?

Scenario table

As staffing and delivery depth rise, fixed costs climb faster than margin improves, so the monthly revenue needed to cover the business rises from about $673k in lean launch to about $1.562M in full service. Treat these as coverage levels, not sales forecasts.

Planning assumptions only; actual break-even will move with utilization and pricing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$673k	$181k	$491k	73%	-$327k	Founder-led delivery keeps risk tight.
Base growth	$1,222k	$281k	$941k	77%	$349k	Month 22 marks the break-even point.
Full-service scale	$1,562k	$312k	$1,250k	80%	$3,398k	Wider cushion, but only with steady volume.

What if revenue slips or costs run hot?

Stress test

This plan is tight. At $673k in monthly revenue and a 73% contribution margin, it only just covers $491k of fixed costs, so a small sales miss or a margin dip quickly opens a gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$673k	$0 cushion	The plan has almost no room for delay.
Revenue shortfall	Monthly revenue falls 10% to about $606k.	$673k	$49k gap	Slow proposal conversion shows up fast.
Fixed-cost increase	Fixed costs rise 10% to about $540k.	$740k	$67k gap	Underused senior staff makes overhead too heavy.
Margin pressure	Variable expenses rise from 27% to 32%.	$722k	$49k gap	Higher site travel and third-party reviews squeeze margin.
Combined pressure	Revenue is down 10%, fixed costs are up 10%, and variable expenses are 32%.	$794k	$128k gap	Sales slippage and cost overruns stack into a big miss.

What should you verify before you commit to office rent, hires, and the site-visit vehicle?

Founder checklist

Don’t lock in rent, hires, or the vehicle until signed work can cover the $673K monthly break-even target at Year 1 rates. Keep Month 27 cash above $324K and make sure the $165K launch capex is funded before payroll grows.

1Pipeline Cover$673K/mo

Verify signed work can clear the monthly break-even target before you commit to fixed overhead.

2Year 1 Rates$175/$180/$165

Confirm new work is landing at Year 1 hourly rates for project management, pre-construction advisory, and retainers.

3Billable Load374-408 hrs/mo

Check whether one service line can support this much billable time each month before staffing scales up.

4Retainer Mix10%→35%

Build retainers before fixed payroll rises, because the mix needs to grow from Year 1 to the mature period.

5Fixed Burn$68.1K/mo

Test consultant hiring against Year 2 fixed burn, and delay office expansion if the $8,000 rent is not tied to booked work.

6Cash Timing$324K + $165K

Protect the Month 27 cash floor and the launch capex, and track collections separately from signed contracts because backlog is not cash.