Foreclosure Prevention Counseling Break-Even: $53K Monthly Revenue

Fixed costs $7.9K/mo Base overhead

Contribution margin 63% After direct costs

Break-even revenue $55.4K/mo Revenue to cover base

Break-even timing Month 6 Model break-even point

Break-even calculator

Test whether monthly revenue can cover variable expenses and the fixed monthly cost base.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Lower revenue Higher revenue Variable expenses These are direct costs that rise as revenue grows. $ Lower costs Higher costs

Money available to cover fixed costs $179,800 $232,000 revenue - $52,200 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base contribution margin must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which foreclosure prevention counseling expenses are fixed and which move with sales?

Cost classification

Break-even is only reliable when fixed overhead, usage charges, and hiring steps are separated. Here, the model reaches break-even in Month 6, so misclassifying payroll or CAC can move that target fast.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $4,500 per month in fixed overhead from Month 1 through Month 60.	Spreading rent across clients and making break-even look easier as volume rises.
CRM and Workflow Software Subscription	Fixed	Use $800 per month as a stable operating expense within the monthly planning range.	Mixing the base subscription with usage-based portal charges.
Case Documentation and Filing Fees	Variable	Apply 8.0% in the first year, falling to 6.0% by the fifth year, as a direct revenue-linked expense.	Treating filing work as overhead instead of reducing contribution margin.
Credit Report and Verification Access	Variable	Apply 4.0% in the first year, falling to 2.0% by the fifth year, because usage rises with active cases.	Ignoring per-case verification costs when intake volume grows.
External Referral Commissions	Variable	Deduct 10.0% in the first year, falling to 7.5% by the fifth year, before testing break-even volume.	Burying referral commissions inside overhead instead of CAC and contribution math.
Secure Portal and Cloud Storage Usage	Variable	Apply 5.0% in the first year, falling to 3.0% by the fifth year, as client activity drives usage.	Forgetting software usage charges after listing the fixed workflow subscription.
Senior Housing Counselor Payroll	Semi-fixed	Add salary in hiring blocks: $75,000 annually per FTE, moving from 1.0 FTE in the first year to 5.0 FTE by the fifth year.	Treating all counselor payroll as variable by client instead of capacity added in steps.
Annual Marketing Budget	Semi-variable	Model spend as scaling from $45,000 in the first year to $95,000 in the fifth year, with CAC improving from $450 to $325.	Classifying outreach as fixed when spend changes with intake goals.

How does break-even shift from a lean launch to staffed scale and then a full counseling model?

Scenario table

As revenue grows, variable costs take a smaller share, but fixed payroll rises too. So the break-even line moves up in dollars, yet each bigger setup has more cushion if volume stays on track.

Planning assumptions only; actual break-even can move with case mix, staffing pace, and overhead control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch: lower overhead	$79.3k	$21.4k	$34.9k	73.0%	$33.0k	Revenue clears the $47.8k break-even line, so launch has a cushion.
Base scale: staffed operations	$163.6k	$40.1k	$44.9k	75.5%	$78.6k	Revenue stays above the $59.5k break-even line, so staffed operations still have room.
Full scale: expanded counselors and outreach	$380.7k	$70.4k	$81.7k	81.5%	$228.6k	Revenue clears the $100.2k break-even line, so the mature model has a wide cushion.

What breaks the break-even plan if intake slows or payroll gets ahead of cases?

Stress test

Year 1 clears break-even, but the cushion shrinks fast if intake slows or payroll gets ahead of cases. Watch CAC above $450, slower conversion, and more paid leads, because those three move the plan from safe to tight.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$530K	$263K cushion	CAC at $450 leaves little room for slippage.
Revenue shortfall	Revenue falls 15% to about $674K.	$530K	$144K cushion	Slower conversion cuts the buffer fast.
Fixed-cost increase	Fixed costs rise 10% to about $425K.	$583K	$210K cushion	Hiring ahead of intake lifts break-even.
Margin pressure	Variable expenses rise 5 points to 32%.	$569K	$224K cushion	Higher referral and outreach cost squeeze margin.
Combined pressure	Revenue falls 15%, fixed costs rise 10%, and variable expenses rise 5 points.	$626K	$48K cushion	Low intake and higher payroll leave little room.

Can this foreclosure counseling practice clear break-even before you sign the office lease and add fixed staff?

Founder checklist

Validate referral sources, paid outreach, staffing, and cash before you sign the lease. The model breaks even in Month 6, needs about $53K in monthly revenue, and hits an $810K cash low in Month 2, so the gate is real.

1Referral flow$53K/mo

Confirm referral sources can fill enough cases to clear the monthly break-even revenue test before you lock in the lease.

2Paid CAC$450

Test paid outreach against the Year 1 customer acquisition cost before you raise spend, or you may buy volume that never clears the margin.

3Lease load$34.9K/mo

Check the full fixed load from rent, software, compliance, utilities, dues, and base payroll, because that monthly cost only works if intake is already real.

4Staff ramp4.5 hrs

Map counselor time across financial counseling, lender negotiation, and assistance applications so the Year 1 active-customer load stays within reach.

5Cash runway$810K

Hold the minimum cash reserve through the Month 2 low point, and delay noncritical software or equipment if that cushion is not funded.

6Compliance cover$1.85K/mo

Confirm the legal compliance, audit, and liability coverage is in place before scaling intake, because oversight has to grow with case volume.