Employee Engagement Program Break-Even Analysis: $109K Monthly Revenue

Fixed costs $76.6K/mo Year 1 fixed base

Contribution margin 70.5% After variable costs

Break-even revenue $108.7K/mo Monthly target revenue

Break-even timing Month 15 Model break-even point

Break-even calculator

Test whether monthly revenue covers variable expenses and the fixed cost base, and see how close the business is to break-even.

Lean Base Full

Monthly revenue Revenue sets the pool available to cover direct and fixed costs. $ Lower sales Higher sales Variable expenses Direct costs that rise with each dollar of client work. $ Lighter costs Heavier costs

Money available to cover fixed costs $113,100 $157,083 revenue - $43,983 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the margin has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with client sales?

Cost classification

Break-even in Month 15 only holds if fixed overhead and usage-based delivery costs sit in the right buckets. Misclassifying coach labor, royalties, or travel can make the model look profitable before cash risk has passed.

Expense	Cost	Break-Even Treatment	Common Mistake
Premium Office Rent	Fixed	Include $12,500 per month in overhead from Month 1 through Month 60.	Treating rent as optional during the ramp-up.
Software SaaS Licenses	Fixed	Include $2,800 per month before testing contribution margin.	Ignoring paid seats before revenue scales.
Professional Liability Insurance	Fixed	Include $1,200 per month as required operating overhead.	Excluding required coverage from break-even math.
Contracted Specialist Coaches	Variable	Model at 12.0% of first-year revenue, then step down to 10.0% by Year 5.	Treating delivery labor like fixed salary.
Assessment Platform Royalties	Variable	Model at 4.5% of first-year revenue, falling to 2.5% by Year 5.	Forgetting usage fees tied to client work.
Client Travel and Workshops	Variable	Model at 8.0% of first-year revenue, with pricing pressure tested before onsite delivery.	Underpricing travel-heavy workshop delivery.
Sales Commissions	Variable	Model at 5.0% of revenue across all forecast years.	Omitting commission drag from each signed customer.
Telecommunications and Utilities	Semi-variable	Start with the $950 monthly base and retest as staff and client activity rise.	Missing usage growth as the team scales.

How does break-even shift from lean launch to a fuller delivery model for this employee engagement program?

Scenario table

Lean pilot delivery stays below break-even because fixed costs absorb most of the margin. At the base case, the same service mix just covers overhead, and the fuller month adds a small profit cushion.

These are model assumptions, not guarantees; actual break-even will move with mix, staffing, and billable-hour use.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$71.8k	$21.2k	$76.6k	70.5%	-$26.0k	Still below break-even; cash burn remains about $26k a month.
Base break-even	$108.7k	$32.1k	$76.6k	70.5%	$0.0k	At break-even; any sales slip pushes it back into loss.
Fuller operating month	$157.1k	$44.0k	$94.4k	72.0%	$18.7k	Higher utilization creates a small cushion and funds growth.

What pushes this employee engagement program past break-even?

Stress test

The plan is most exposed to softer bookings, heavier contractor and travel spend, and fixed-cost creep. A 10% revenue miss or a 10% cost bump both move break-even up fast and can turn the month red.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.087M	$0 gap	Break-even lands near Month 15.
Revenue miss	Revenue falls 10% below the base break-even level.	$1.087M	$109k gap	At $978k revenue, the model shows about a $77k operating loss.
Fixed-cost rise	Fixed costs increase 10% from the base plan.	$1.194M	$107k gap	Higher rent, software, and payroll push the bar above the base case.
Margin squeeze	Variable expenses rise to 34.5% of revenue.	$1.169M	$82k gap	More travel and contractor hours cut contribution fast.
Combined stress	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise to 34.5%.	$1.286M	$308k gap	That mix drives about a $201k monthly loss.

Is this employee engagement program ready for the hires, office space, and software spend it needs?

Founder checklist

Before you lock in overhead, make sure the signed pipeline can carry the model to Month 15 break-even. If demand, margin, and cash clear the thresholds below, the spend is defensible.

1Demand Proof$109K/mo

Confirm signed or late-stage work can support at least $109k in monthly revenue before you hire or sign a long commitment.

2Fixed Load$18.5K/mo

Keep fixed overhead near $18.5k a month and question the $12.5k office rent until utilization is proven.

3Margin Mix70.5% CM

Hold contractor coaches at 12.0% of revenue, royalties at 4.5%, travel at 8.0%, and commissions at 5.0% so contribution margin stays near 70.5%.

4Delivery Capacity18.5 hrs/mo

Verify each active customer’s 18.5 billable hours a month fit the planned staffing ramp, or delivery strain will hit before break-even.

5Cash Cushion$313K

Keep cash above the $313k minimum through Month 16, because Year 1 EBITDA is -$312k and breakeven lands in Month 15.

6Launch Test$45K / $4.5K

Hold Year 1 marketing at $45k and CAC near $4.5k, and do not add more software until onboarding turns signed work into billable hours cleanly.