Digital Banking Platform Break-Even Analysis: Month 17 Target

Fixed costs $125.9K/mo Monthly base

Contribution margin 82% After variable costs

Break-even revenue $153.5K/mo Revenue floor

Break-even timing Month 17 Model break-even

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a digital banking platform.

Lean Base Full

Monthly revenue Revenue sets the cash available to cover fixed costs. $ Low revenue High revenue Variable expenses Direct costs that rise with revenue. $ Low costs High costs

Money available to cover fixed costs $193,467 $376,375 revenue - $182,908 variable expenses

Margin ratio

51%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the business has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, which move with activity, and which step up as this digital banking platform scales?

Cost classification

Break-even is only reliable if fixed overhead, usage-linked fees, and step-up staffing are separated. Here, the Month 17 break-even depends on covering the monthly base before variable acquisition and payment fees scale.

Expense	Cost	Break-Even Treatment	Common Mistake
Cloud Hosting	Fixed	Include $15,000 in monthly overhead from Month 1 through Month 60.	Treating hosting as purely usage-based before scale.
Core Banking Platform License	Fixed	Include $20,000 in monthly overhead; it is not tied to active accounts in this model.	Linking the full license fee to customer volume.
Data Security Software	Fixed	Include $5,000 in monthly overhead as a required platform expense.	Leaving security out until customer growth starts.
Regulatory Compliance Fees	Fixed	Include $8,000 in monthly overhead before revenue reaches break-even.	Modeling compliance as optional or volume-driven.
Utilities & Internet	Semi-fixed	Start with the $800 monthly base, then review when office or team capacity changes.	Assuming it rises smoothly with every new user.
Customer Acquisition Costs	Variable	Apply as a revenue-linked expense: 15.0% in Year 1, 10.0% in Year 2, and 4.0% in Year 5.	Using one flat rate across all years.
Interchange Fees Paid	Variable	Apply as a transaction-linked expense: 3.0% in Year 1, 2.8% in Year 2, and 2.0% in Year 5.	Counting payment fees as fixed overhead.
Customer Support Rep Hiring	Semi-fixed	Step staffing from 0 FTE in Year 1 to 15 FTE in Year 5 as support load grows.	Treating support as purely variable with no hiring jumps.

How does break-even change across lean, base, and full launch cases for this digital banking platform?

Scenario table

Lean is underwater, base is past break-even, and full has the widest cushion. The break-even line moves mainly with fixed monthly cost and the variable expense rate, so faster revenue growth matters more than small cost cuts.

Planning-case figures only; they depend on the model inputs and are not a guarantee of results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$65,508	$11,791	$125,883	82.0%	-$82,167	Below the break-even line; cash burn stays high.
Base launch	$221,862	$28,399	$156,717	87.2%	$36,750	Clears break-even and matches the Month 17 signal.
Full-scale launch	$2,452,091	$147,125	$288,383	94.0%	$2,016,583	Large cushion; break-even risk is low if volume holds.

What breaks break-even for a digital banking platform?

Stress test

Year 2 is the tight spot: $156,717 in fixed monthly costs needs about $179,700 in monthly revenue at an 87.2% contribution margin. If acquisition, payment fees, or compliance spend slip, the plan can miss break-even fast and delay Month 17.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$179,700	$0 gap	No cushion; hitting forecast matters.
Revenue shortfall	Monthly revenue falls 10%.	$179,700	$15,700 gap	Weaker acquisition or lower account activity turns small misses into losses.
Fixed-cost creep	Fixed costs rise 10% to about $172,400 a month.	$197,700	$18,000 gap	Compliance, support, or vendor creep pushes the target higher.
Fee pressure	Variable expenses rise 3 points, cutting margin to 84.2%.	$186,100	$6,400 gap	Higher payment fees or fraud reviews cut the cushion fast.
Combined downside	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise 3 points.	$204,500	$36,200 gap	The plan can slip well below break-even before Month 17.

What should the founder verify before funding the digital banking platform build?

Founder checklist

Do not commit to the full build until the model clears the $690.0K launch capex, $61.3K monthly overhead, and a $47.4M cash trough at Month 12. The business only reaches break-even in Month 17, so early spend has to be funded up front.

1Demand proof$11.0M

Verify Year 1 loan demand can reach $11.0M and that the $690.0K launch capex is funded, because the build, integration, cloud, and security work happen before break-even.

2Overhead load$61.3K/mo

Confirm non-payroll overhead stays at $61.3K per month and Year 1 payroll stays near $775.0K, because that fixed load is what break-even has to cover.

3Unit margin82% CM

Check that 15.0% customer acquisition cost plus 3.0% interchange fees still leave 82% contribution margin, or the model will need much more volume to hit break-even.

4Staff rampMonth 13

Make sure support hiring starts in Month 13 and compliance can hold at 1 FTE until Year 4, so service and control keep pace as deposits and loan products grow.

5Cash cushion$47.4M

Hold at least the modeled $47.4M cash trough in Month 12, because Year 1 EBITDA is a $986K loss and break-even does not arrive until Month 17.

6Launch demand$30.0M

Verify launch demand can build to a $30.0M deposit base in Year 1, since checking, savings, and money market balances fund interest income and keep growth on plan.