Energy Brokerage Break-Even: $83K Monthly Revenue By Month 8

Fixed costs $57.4K Monthly fixed base

Contribution margin 89.5% After variable costs

Break-even revenue $64.1K Revenue to cover

Break-even timing Month 8 Core breakeven month

Break-even calculator

Test whether monthly revenue covers variable costs and the fixed monthly cost base.

Lean Base Full

Monthly revenue Revenue is the cash in that must cover direct costs and overhead. $ Lower volume Higher volume Variable expenses Direct costs that move with volume, like support and market data. $ Lower costs Higher costs

Money available to cover fixed costs $71,600 $80,000 revenue - $8,400 variable expenses

Margin ratio

90%

Covers fixed costs

$2,467 short

Fixed monthly costs Monthly overhead the business has to cover even if volume slows. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or step up as this energy broker grows?

Cost classification

Classifying costs correctly keeps break-even from looking earlier than it is. In this model, Month 8 break-even depends on separating stable overhead from revenue-linked platform, support, data, and marketing spend.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent	Fixed	Use $3,000 per month from Month 1 through Month 60 in fixed overhead.	Scaling rent with deal volume instead of space needs.
Software subscriptions for customer relationship management and accounting	Fixed	Use $800 per month as a stable operating expense in the break-even base.	Treating core admin software like a transaction fee.
Legal and compliance retainer	Fixed	Use $1,500 per month as recurring overhead before contribution margin covers profit.	Leaving compliance out until a regulatory issue appears.
First year payroll	Fixed	Use about $50,000 per month: $600,000 annual salaries divided by 12 months.	Modeling salaried staff as if they flex down with weak sales.
Cloud hosting and platform infrastructure	Variable	Apply 2.0% of revenue in the first year, falling to 1.2% by Year 5.	Entering hosting as one flat bill when usage rises with volume.
Energy market data licensing	Variable	Apply 1.5% of revenue in the first year, falling to 1.1% by Year 5.	Ignoring data fees when transaction and quoting activity grows.
Buyer and seller acquisition spend	Semi-variable	Tie spend to CAC targets: first year buyer CAC is $150 and seller CAC is $1,000.	Treating all marketing as fixed when acquisition spend follows growth targets.
Sales and engineering capacity	Semi-fixed	Add capacity in hiring steps, including junior engineering and sales roles starting Month 25.	Smoothing new hires as a revenue percentage instead of step changes.

How does break-even change across lean, base, and full energy brokerage scenarios?

Scenario table

The base case uses the Year 1 mix and commission setup, so it sits near Month 8 break-even. Lean trims overhead, while the full case raises revenue and fixed cost, which only works if sales capacity keeps up.

Planning cases only; actual break-even will move with closed accounts, seller mix, and commission mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean brokerage case	$63K	$7K	$58K	88.5%	-$2K	Lower overhead helps, but cushion is still thin.
Base brokerage case	$69K	$7K	$62K	89.5%	$0	This is the modeled Month 8 break-even point.
Full brokerage case	$96K	$10K	$81K	90.0%	$5K	Higher volume can absorb the extra overhead.

What breaks the break-even plan for this energy brokerage?

Stress test

The plan breaks fast if revenue slips or overhead rises. At about $828K in break-even revenue and $741K of fixed costs, thinner conversion, lower supplier commission, higher CAC, or compliance and software inflation can push it back into loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$828K	$0 gap	Any miss turns into loss.
Revenue shortfall	Revenue slips 10% below plan.	$828K	$83K gap	Slower contract conversion turns break-even into loss.
Fixed-cost increase	Fixed costs rise 10%.	$910K	$82K gap	Compliance or software inflation lifts the hurdle.
Variable pressure	Variable expenses rise to 135% of revenue.	$856K	$28K gap	Lower supplier commission or higher CAC squeezes spread.
Combined pressure	Revenue slips 10%, fixed costs rise 10%, and variable expenses rise to 135%.	$942K	$114K gap	This mix drives about a $171K monthly loss and wipes out the cushion.

What should you verify before hiring reps and locking in fixed spend for an energy brokerage?

Founder checklist

Don’t add fixed spend until supplier coverage, buyer flow, and cash runway all support the plan. This model reaches breakeven in Month 8, but cash bottoms in Month 10 at $663K, so the real test is whether contracts and sales can carry that gap.

1Supplier mix40/40/20

Verify you can place volume across large utilities, regional providers, and green energy firms in the Year 1 mix, because contract coverage is the supply-side bottleneck here.

2Pipeline CAC$1,000/$150

Verify seller CAC at $1,000 and buyer CAC at $150 are real, because weak lead quality will break the pipeline before breakeven.

3Order margin$650/order

Verify the Year 1 blend yields about $650 per new order from a $10 fixed commission plus 2.5% of a $25.6K average order, so each close actually funds overhead.

4Fixed burn$57.4K/mo

Verify you can carry about $57.4K a month in fixed cost, using $7.4K overhead plus $50K payroll, before variable costs and launch delays hit cash.

5Cash runway$663K

Verify you have at least $663K of cash on hand, because the model’s minimum cash point lands in Month 10 and a thinner cushion raises cut risk.

6Launch gateMonth 8

Verify contract flow and compliance coverage are live by Month 8, because no inventory is needed and that timing is the real break-even gate.