Family Mediation Break-Even Analysis: $298K Monthly Revenue

Fixed costs $23.3K/mo Year 1 base

Contribution margin 78% After variable costs

Break-even revenue $29.8K/mo Monthly target

Break-even timing Month 21 Ramp to break-even

Break-even calculator

Use this calculator to test how monthly revenue, variable expenses, and fixed costs shape break-even for a family mediation service.

Lean Base Full

Monthly revenue Revenue sets the pool that has to cover direct cost and overhead. $ Low revenue High revenue Variable expenses Use direct costs that move with each month of client work. $ Low cost High cost

Money available to cover fixed costs $28,316 $32,473 revenue - $4,157 variable expenses

Margin ratio

87%

Covers fixed costs

$1,809 short

Fixed monthly costs This is the monthly cost base profit has to cover. $ Low burn High burn

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales for a family mediation service?

Cost classification

Break-even gets cleaner when $5,850 of monthly overhead is kept separate from percentage-based expenses. If revenue-linked tools are treated as fixed, the model will overstate margin and understate the sales needed by Month 21.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include in $3,500 monthly overhead before calculating break-even revenue.	Treating rent as scalable when it stays flat within the current office plan.
Utilities	Semi-variable	Budget the $400 monthly base, then watch usage as sessions and office hours rise.	Modeling the full amount as fixed even when client volume extends room use.
Professional Liability Insurance (Base)	Semi-fixed	Use the $300 monthly base until coverage needs step up with scale.	Assuming the base premium covers every future mediator and case load.
Website Hosting & Maintenance	Fixed	Include the $150 monthly amount in recurring overhead.	Linking hosting to revenue when the model shows a stable monthly charge.
Accounting Services	Fixed	Include the $500 monthly amount in operating break-even overhead.	Leaving accounting below the line and understating monthly cash needs.
Digital Marketing & Advertising	Variable	Apply 10% of revenue in the first year as a selling expense.	Treating percentage-based marketing as fixed overhead.
Client Intake & Support Software	Variable	Apply 4% of revenue in the first year because it scales with client flow.	Locking it into overhead instead of reducing contribution margin.
Mediator Professional Certification & Training	Variable	Apply 5% of revenue in the first year as a direct service delivery load.	Ignoring training as volume grows and overstating mediator contribution.

How does break-even shift across lean, base, and stronger caseloads for a family mediation service?

Scenario table

With a 78% contribution margin, the service needs about $19.4k in monthly fixed coverage. Lean volume stays below break-even, the base case sits on the line, and the safer setup is virtual-first or office-light until paid demand can hold 42+ cases a month.

Planning cases only; actual results will move with case mix, close rates, and staff load.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean virtual caseload	$18.9k	$4.2k	$19.4k	78%	-$4.7k	Still below break-even; cash burn stays high.
Base office-light caseload	$24.8k	$5.5k	$19.4k	78%	-$0.1k	Near break-even; small shifts in demand decide profit.
Stronger paid-demand caseload	$31.3k	$6.9k	$19.4k	78%	$5.0k	Above break-even; this mix adds a real cushion.

What breaks the break-even plan for this family mediation service?

Stress test

Base break-even is about $298k in revenue. A 15% revenue slip, a 10% fixed-cost bump, or a drop in contribution margin from 78% to 72% can push it back into loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$298,000	$0 gap	Break-even sits right on plan.
Revenue shortfall	Revenue falls 15% to $253,000.	$298,000	$45,000 gap	At 78% contribution, that gap turns into about a $35k loss.
Fixed-cost pressure	Fixed overhead rises 10% to $256,000.	$328,000	$30,000 gap	Office and support costs need more revenue before the plan clears zero.
Margin pressure	Variable expenses rise from 22% to 28%.	$323,000	$25,000 gap	Higher CAC or weak referrals can squeeze contribution fast.
Combined pressure	Revenue falls 15%, fixed overhead rises 10%, and variable expenses rise to 28%.	$356,000	$103,000 gap	That mix puts the service back into loss unless calendars fill much faster.

What should a family mediation founder verify before signing the lease and adding payroll?

Founder checklist

Don't lock in the office, payroll, or ad spend until you can prove 42 to 43 monthly cases, or the same $708 collected fee through packages, without leaning on extra cash. The model works only when demand, referrals, intake, and capacity are in place first.

1Case volume42-43/mo

Verify you can book at least 42 to 43 monthly cases, or equivalent package revenue, before you add fixed commitments.

2Referral flow50 clients/yr

Confirm attorney, therapist, court-adjacent, and community referrals can cover the gap after the Year 1 ad budget buys only about 50 clients.

3Fixed load$3.9K/mo

Do not sign the office lease until rent and utilities are covered by the extra revenue needed to absorb the $3,900 monthly load.

4Contribution78% CM

Keep the average collected fee near $708 and the year-one direct cost load near 22% so each case leaves room for wages and overhead.

5Capacity ramp152 hrs/mo

Before you hire more mediators, make sure the team can schedule 152 billable hours a month without intake delays or cancellations.

6Cash cushion$669K

Keep the reserve strong enough to carry the Month 27 cash low and separate the $36,000 first-three-month setup spend from operating cash.