Cybersecurity Consultancy Break-Even Point: About $72k Per Month

Fixed costs $51.2K/mo Standing overhead

Contribution margin 71% After variable cost

Break-even revenue $72.1K/mo Monthly target

Break-even timing Month 5 Model crosses here

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a cybersecurity consulting business.

Lean Base Full

Monthly revenue This is the cash coming in each month before direct costs and overhead. $ Low sales High sales Variable expenses Use the costs that move with sales, like tools, marketing, and certifications. $ Low costs High costs

Money available to cover fixed costs $311,384 $425,388 revenue - $114,004 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin has to cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which cybersecurity consulting expenses are fixed, and which move with sales?

Cost classification

Your break-even date only works if fixed overhead stays separate from revenue-linked spend. In the first operating year, payroll and rent set the monthly hurdle, while software, threat data, marketing, and certifications reduce contribution margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $8,500 per month from Month 1 through Month 60; do not change it with client count.	Tying rent to projects or billable hours.
Cloud Infrastructure	Fixed	Use $2,500 per month unless the model adds usage-based tiers later.	Treating the full platform base charge as variable.
Insurance & Legal	Fixed	Use $3,200 per month as operating overhead across the planning range.	Charging it to each client engagement.
CEO, Analyst, and Sales Payroll	Fixed	Use first-year salary load of $395,000 per year, or about $32,917 per month.	Moving core payroll with revenue before staffing changes.
Security Software Licensing & Tools	Variable	Apply 12% of revenue in the first operating year as delivery-linked spend.	Modeling tool licenses as flat overhead.
Threat Intelligence Feeds	Variable	Apply 6% of revenue in the first operating year to reflect client delivery volume.	Ignoring the margin drag as sales rise.
Marketing & Customer Acquisition	Variable	Apply 8% of revenue, but treat any pre-committed part of the $120,000 first-year budget as fixed.	Mixing committed spend and performance spend in one bucket.
Professional Development & Certifications	Variable	Apply 3% of revenue in the first operating year as delivery capability spend.	Leaving certifications out of contribution margin.

How does break-even change from a lean launch to full capacity in cybersecurity consulting?

Scenario table

The model reaches break-even in Month 5, but scaling staff and delivery support pushes the monthly bar higher even as margins improve. So the real test is whether sales can keep pace with hiring.

Planning cases only; these figures are assumptions for decision-making, not guarantees of future results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$6,920	$2,009	$51,167	71%	-$46,256	Break-even sits near $72k a month, so sales need to ramp fast.
Base growth	$14,544	$3,560	$125,750	75.5%	-$104,766	Break-even rises to about $166.6k a month as payroll and delivery depth expand.
Full-capacity model	$25,334	$5,067	$172,000	80%	-$151,733	Even with a stronger margin, break-even is still about $215k a month because fixed overhead is heavier.

What pushes this cybersecurity consulting plan past break-even?

Stress test

This model is near break-even at about $721k of revenue. A 10% revenue dip, a 5-point margin hit, or a 10% overhead rise can each turn a thin cushion into a real monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$721k	$0 cushion	Any slip in retainers tightens the margin fast.
Revenue shortfall	Revenue falls 10% from plan.	$721k	$51k gap	A slow quarter can wipe out the cushion.
Fixed-cost increase	Monthly overhead rises 10%.	$793k	$72k gap	Higher rent, insurance, or admin spend lifts break-even fast.
Margin pressure	Variable expenses rise 5 points, cutting margin to 66%.	$776k	$55k gap	Higher software or contractor spend squeezes the model.
Combined pressure	Revenue falls 10%, margin falls to 66%, and overhead rises 10%.	$852k	$135k gap	Lost retainers plus cost creep push break-even out of reach.

What should a cybersecurity consulting founder verify before signing a lease, hiring fixed staff, or buying tools?

Founder checklist

Test the plan against Month 5 break-even before you commit to fixed costs. Prove at least $72k/month in Year 1 revenue and keep the Month 2 cash trough covered.

1Pipeline$72k/mo

Confirm qualified pipeline can support at least $72k/month in Year 1 before you sign a lease or add payroll, because break-even lands in Month 5.

2Fixed load$18.25k/mo

Delay office rent if the $8.5k line is not needed, because fixed costs already total $18.25k/month before wages.

3Margin check71% CM

Verify the mix still clears a 71% contribution margin after 18% COGS and 11% variable spend, or the $72k/month target gets thin fast.

4Staffing rampMonth 13-25

Keep the Month 13 to Month 25 hires tied to booked work and use subcontractors for spikes, so the 8 to 32 billable hours per service in Year 1 stay covered without overhiring.

5Cash cushion$745k

Keep at least $745k ready for the Month 2 cash trough, and treat the $120k Year 1 marketing budget as committed cash if prepaid.

6Capex gate$35k+$25k+$20k

Approve the $35k hardware, $25k lab, and $20k specialized license spend only after demand proof, so capex doesn't outrun the path to break-even.