Cybersecurity Break-Even Analysis: $118K Monthly Revenue Target

Fixed costs $71.5K/mo base load

Contribution margin 71% after variable costs

Break-even revenue $100.7K/mo monthly target

Break-even timing Month 22 full model

Break-even calculator

Test monthly revenue, variable expenses, and fixed monthly costs against the point where the business covers its overhead.

Lean Base Full

Monthly revenue This is the monthly top line that funds direct costs and overhead. $ Lower sales Higher sales Variable expenses Use costs like commissions and subcontractors that rise with each deal. $ Lean costs Higher costs

Money available to cover fixed costs $98,000 $110,000 revenue - $12,000 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs These are monthly costs that stay on even when revenue dips. $ Lower burn Higher burn

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with sales in this security services model?

Cost classification

Break-even is only reliable when each expense behaves the way the model says it does. Here, the big risk is treating payroll and tool costs like they rise smoothly with sales when they often move in steps.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $8,000 per month from Month 1 through Month 60 as base overhead.	Spreading rent per client and understating losses at low volume.
Utilities & Internet	Fixed	Use $1,200 per month as stable operating overhead within the planning range.	Linking it to revenue even though the model treats it as monthly.
Business Insurance	Fixed	Use $800 per month in the break-even base before contribution margin.	Dropping it from break-even because it feels administrative.
Software Subscriptions (Non-COGS)	Fixed	Use $2,500 per month as overhead separate from delivery platform costs.	Mixing internal subscriptions with client delivery tools.
Service Payroll	Semi-fixed	Start with $55,000 per month in the first year, then step up as forecast FTEs are added.	Treating analyst payroll like pure variable labor when it stays fixed until hiring changes.
Security Software & Platform Licensing	Semi-variable	Model as delivery COGS at 12% of revenue in the first year, falling to 8% by the mature year.	Treating all tool spend as fixed and overstating gross margin at scale.
Cloud Infrastructure & Data Processing	Semi-variable	Model as delivery COGS at 8% of revenue in the first year, falling to 6% by the mature year.	Ignoring usage growth as clients, logs, and data volume increase.
Sales Commissions & Bonuses	Variable	Apply 6% of revenue in the first year, declining to 4% by the mature year.	Putting commissions in fixed payroll and overstating contribution margin.

How does break-even change across lean, base, and full cybersecurity operating models?

Scenario table

Break-even rises as staffing and delivery load rise, even when the service mix improves. The lean model needs less monthly revenue, while the base and full models carry more fixed cost and need a stronger client pipeline to stay above water.

Planning estimates only; actual break-even will move with client mix, delivery hours, and pricing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 model	$118,310	$34,310	$84,000	71%	$0	About 48 clients cover the run rate, so slack is thin.
Base Year 2 model	$156,190	$41,390	$114,800	73.5%	$0	About 51 clients cover costs, and pipeline timing matters most.
Full Year 3 model	$203,684	$48,884	$154,800	76%	$0	About 51 clients still gets you there, but utilization has to hold.

What breaks the break-even plan if contracts slip or costs rise?

Stress test

The base plan clears break-even at about $118,300 a month, but a 15% revenue miss, 10% higher fixed costs, or a 5-point margin drop quickly turns that into monthly losses. Delayed contracts, discounting, and tool inflation are the first warning signs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in fixed costs or margin.	$118,300	$0 cushion	Revenue covers costs only at plan level.
Revenue shortfall	Monthly revenue runs 15% below plan.	$118,300	$12,600 gap	Delayed contracts or discounting push a monthly loss.
Fixed-cost pressure	Fixed costs rise 10% to about $92,400 a month.	$130,100	$11,800 gap	Salary hikes and tool inflation eat the cushion.
Margin pressure	Variable expenses rise 5 points to 34%, cutting contribution margin to 66%.	$127,300	$9,000 gap	Subcontractor overruns make each sale less profitable.
Combined pressure	Revenue is 15% lower, fixed costs are 10% higher, and variable expenses rise to 34%.	$140,000	$26,000 gap	Churn before Month 22 can push the model into loss.

What should a cybersecurity founder verify before signing the lease, hiring more analysts, and scaling spend?

Founder checklist

Don’t commit to the lease, hires, or platform ramp until late-stage revenue can support about $118.3K a month and the cash plan still covers Month 22 breakeven and the Month 26 minimum cash point.

1Pipeline proof$118.3K/mo

Confirm signed or late-stage work can reach this monthly revenue before you add fixed burn.

2Lease load$8.0K/mo

Skip the office lease unless clients truly need it, because $8,000 a month hits break-even fast.

3Platform load20% direct

Approve software and cloud spend only if licensing stays near 12% and cloud near 8% of revenue.

4Payroll cover$55.0K/mo

Delay extra analyst hiring unless booked utilization can cover about $55,000 in monthly payroll first.

5Runway cushionMonth 22-26

Hold cash through breakeven in Month 22 and the -$42K minimum cash point in Month 26, or the plan breaks early.

6Acquisition test$3.0K CAC

Scale the $150,000 first-year marketing budget only if lead flow works near a $3,000 CAC and insurance and compliance basics are ready for live delivery.