Digital Forensics Consulting Break-Even: $747K Monthly

Fixed costs $53.4K/mo Core overhead

Contribution margin 82% After variable costs

Break-even revenue $65.1K/mo Monthly target

Break-even timing Month 6 Launch payoff

Break-even calculator

Test monthly revenue, direct costs, and overhead to see when the practice reaches break-even.

Lean Base Full

Monthly revenue Revenue is the cash pool that must cover direct costs and fixed overhead. $ Soft launch Scaled month Variable expenses Direct costs like software fees, travel, and legal review rise with each case. $ Light direct cost Higher direct cost

Money available to cover fixed costs $72,183 $88,028 revenue - $15,845 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin has to cover before profit starts. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

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

Cost classification

For a Month 6 break-even target, classification matters because fixed coverage and variable margin tell different stories. Treat usage fees as variable, staff steps as semi-fixed, and rent as fixed monthly overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent ($8,000/month)	Fixed	Include in monthly overhead from Month 1 through Month 60.	Treating the signed lease as optional after launch.
Lead Forensic Expert ($15,000/month)	Fixed	Include in fixed coverage before testing case-level profit.	Counting every examiner hour as billable client work.
Junior Forensic Analyst from Month 7	Semi-fixed	Add the salary step when the hire starts in Month 7.	Ignoring the midyear payroll step-up in first-year break-even.
Forensic Software Usage Fees (5.0% in first year)	Variable	Subtract from revenue before calculating contribution margin.	Burying usage fees in overhead instead of case economics.
External Data Recovery Services (3.0% in first year)	Variable	Tie directly to case volume and complex recovery work.	Pricing complex recovery like standard analysis work.
Travel & Accommodation (6.0% in first year)	Variable	Link to on-site matters and subtract from job revenue.	Averaging rush travel too low for urgent incidents.
Professional Liability Insurance ($1,500/month)	Semi-fixed	Review limits as court and incident-response volume rises.	Using a starter policy past the firm’s risk level.
General Administrative Software ($700/month)	Semi-fixed	Step the spend as headcount and user seats grow.	Calling every license fixed forever.

How does break-even move from a lean setup to a base firm and then a fuller bench in digital forensics consulting?

Scenario table

Lean breaks even at about $24.2k a month because fixed cost stays light. Base lifts that to about $62.3k, and full capacity to about $85.1k, so the service mix needs a clear allocation rule before you trust the hours.

Planning assumptions only; service percentages overlap, so treat the mix as an allocation guide, not a guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean forensic consulting setup	$24.2k	$4.4k	$19.8k	82%	$0	Needs about 119 billable hours a month.
Base small-firm setup	$62.3k	$11.2k	$51.1k	82%	$0	Needs about 307 billable hours a month.
Full multi-examiner setup	$85.1k	$13.2k	$71.9k	84.5%	$0	Needs about 376 billable hours a month.

What breaks the break-even plan fastest?

Stress test

The plan is most fragile when case intake slips, because one fewer Year 1 matter can cut about $62,000 of revenue and leave roughly a $50,000 operating gap. Higher fixed overhead and a move from 18% to 22% variable expenses also push break-even up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in fixed costs or variable expense rate.	$747,000	$0 gap	Baseline is balanced, so any slip shows up fast.
Revenue shortfall	One fewer average Year 1 matter cuts about $62,000 of revenue.	$809,000	$50,000 gap	Case intake delays can push the month into loss.
Fixed-cost increase	Add $8,000 a month in lab or office overhead.	$845,000	$98,000 gap	Extra fixed load needs much more billable work.
Margin pressure	Variable expenses rise from 18% to 22%.	$786,000	$39,000 gap	Rush subcontractors and review costs lift the bar.
Combined pressure	One fewer Year 1 matter, 22% variable expenses, and $8,000 extra fixed costs.	$905,000	$158,000 gap	Delayed matters and weak expert witness demand can turn the month deeply negative.

What should you verify before you sign the lease and hire the first forensic team?

Founder checklist

Don’t commit to the $8,000 lease until referral demand, chain-of-custody, and court-ready reporting are proven. The model reaches break-even in Month 6, but cash bottoms at $591K then, so launch only if pipeline, utilization, and reserve cash all hold.

1Referral Demand20 clients

Prove the Year 1 $50,000 marketing budget can buy at least 20 clients at a $2,500 CAC before you lock the lease.

2Fixed Load$57.1K/mo

Check that rent, payroll, and admin stay near $57.1K a month before case costs, because fixed overhead is the main break-even drag.

3Case Margin82% CM

Contribution margin means what is left after direct case costs, so keep travel, legal review, software usage, and external recovery near plan or each matter will leave too little to cover fixed payroll.

4Staff Ramp2.0 FTE

Document that Year 3 volume can support two senior analyst FTE before you add headcount, because idle expert time cuts margin fast.

5Cash Runway$591K

Hold the model’s $591K cash floor through Month 6, and keep the $280,000 startup capex outside break-even math so launch spending does not choke the business.

6Launch ReadyMonth 1

Before the first matter, prove chain-of-custody, report format, and insurance are ready so incident-response and expert testimony work can start without rework or rejected evidence.