Environmental Site Assessment Break-Even: About $73K Monthly Revenue

Fixed costs $49.3K Monthly overhead base

Contribution margin 70.5% After variable costs

Break-even revenue $69.9K Monthly revenue needed

Break-even timing Month 7 Launch break-even

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for an environmental site assessment service.

Lean Base Full

Monthly revenue Revenue from reports and assessments sets the cash available to cover overhead. $ Lower volume Higher volume Variable expenses Direct costs like lab work, database access, travel, and field supplies rise with each project. $ Lower spend Higher spend

Money available to cover fixed costs $162,174 $217,750 revenue - $55,576 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead for office, insurance, software, and core staff. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which costs stay fixed and which move with site assessment sales?

Cost classification

Break-even gets cleaner when monthly overhead stays separate from project-driven spending. In the first year, fixed overhead is $12,100 per month before payroll, while lab, drilling, database, and field costs move with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent and utilities	Fixed	$6,500 monthly overhead.	Treating lease space as project-driven.
Professional liability insurance	Fixed	$2,200 monthly overhead.	Leaving coverage out of launch math.
GIS and project management software	Semi-fixed	$1,400 monthly base, with seat growth risk.	Ignoring added users as staffing grows.
Laboratory analysis and sample testing	Variable	12.0% of first-year revenue.	Pricing Phase II work without lab allowance.
Drilling and subsurface subcontractors	Variable	8.0% of first-year revenue.	Treating subsurface work like Phase I desk review.
Environmental database subscriptions	Variable	4.5% of first-year revenue.	Missing report database charges.
Project specific travel and field supplies	Variable	5.0% of first-year revenue.	Using local-job pricing for distant sites.
Marketing budget	Semi-fixed	$25,000 in the first year.	Assuming customer acquisition cost stays flat.

How does break-even shift from a lean launch to base growth and full capacity?

Scenario table

Break-even gets easier as the firm moves from lean to full, because revenue scale and contribution margin rise faster than fixed overhead. Base is the cleanest balance: enough cushion without the heaviest staffing load.

Planning figures only; simple margin math leaves out timing, working capital, taxes, and one-time equipment spend.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$847K	$250K	$514K	70.5%	$31K	Small cushion above break-even, so launch control still matters.
Base growth	$2,178K	$555K	$813K	74.5%	$795K	Clearer cushion; repeat work supports break-even with room to scale.
Full capacity	$3,328K	$716K	$1,137K	78.5%	$1,424K	Strong cushion; break-even sits well below the expected run rate.

What breaks the break-even plan if project wins slow or costs creep up?

Stress test

The base case has only a modest cushion, so slower proposal flow or cost creep can push break-even higher fast. A 10% revenue drop trims the cushion to about $34K, and a 10% fixed-cost rise or a 5-point margin hit each add real pressure.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$728K	$118K cushion	The base case has a narrow cushion, so volume must stay steady.
Revenue shortfall	Monthly revenue falls 10% to $762K.	$728K	$34K cushion	Proposal flow is the first warning signal.
Fixed-cost pressure	Fixed overhead rises 10% to about $565K.	$801K	$46K cushion	Lease, insurance, and software renewals need review.
Margin pressure	Variable expenses rise 5 points and margin falls to 65.5%.	$784K	$63K cushion	Tighter pricing is needed on lab, drilling, and travel.
Combined pressure	Revenue falls 10%, variable expenses rise, and fixed overhead climbs 10%.	$862K	$100K gap	Delayed proposals plus more subcontracting can turn loss-making fast.

What should the founder verify before signing the lease and hiring plan?

Founder checklist

Test whether booked work, pricing, and cash can support the lease and hires before you commit. If the pipeline cannot hold about 18 blended projects a month and the Month 7 cash floor of $727K, the break-even plan is too thin.

1Demand proof18 projects/mo

Verify the pipeline can support about 18 blended projects a month, or the fixed payroll and lease will outrun revenue.

2Fixed load$12.1K/mo

Check that the $6,500 office lease plus $5,600 of other monthly overhead is still safe before you lock fixed spend.

3Margin check70.5% CM

Confirm pricing clears the Year 1 variable load of 29.5% of revenue, including lab, drilling, database, and travel costs.

4Capacity ramp15-45h

Verify the team can keep Phase I at 15 hours and Phase II at 45 hours while Year 1 payroll of $446K stays supportable.

5Cash cushion$727K

Keep the Month 7 minimum cash of $727K in reserve, because break-even is not the same thing as owner cash-out capacity.

6Launch demand$25K / $850

Pressure-test the Year 1 marketing budget and CAC plan, and keep the $127.6K setup spend separate from operating break-even.