Geotechnical Engineering Break-Even Revenue: About $65K/Month

Fixed costs $14.0K/mo Base overhead

Contribution margin 82.5% After variable costs

Break-even revenue $16.9K/mo Monthly target

Break-even timing Month 6 Model breakeven

Break-even calculator

Check whether monthly revenue leaves enough after direct project costs to cover the fixed cost base.

Lean Base Full

Monthly revenue Revenue drives the pool left after variable costs to cover fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with project volume, like field work and lab spend. $ Low costs High costs

Money available to cover fixed costs $179,263 $214,621 revenue - $35,358 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which costs are fixed and which move with revenue in a geotechnical engineering break-even model?

Cost classification

Break-even is reliable only when stable overhead stays fixed and project delivery costs move with revenue. Here, fixed overhead starts at $13,950/month before payroll, while first year delivery costs add 17.5% of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent & Utilities	Fixed	Use $7,500/month as baseline overhead from Month 1 through Month 60.	Treating office space as project-based.
Professional Liability Insurance	Fixed	Use $1,200/month as required overhead before revenue ramps.	Ignoring coverage during early low-revenue months.
Vehicle Lease & Maintenance	Fixed	Use $2,500/month as the baseline field vehicle burden.	Assuming truck costs disappear in slow months.
Subcontractor Drilling & Field Services	Variable	Model at 8.0% of first year revenue, declining to 6.0% by the fifth year.	Pricing drilling as overhead instead of project delivery.
Third-Party Laboratory Testing	Variable	Model at 4.0% of first year revenue, declining to 3.0% by the fifth year.	Missing the pass-through margin impact.
Project Consumables & Field Supplies	Variable	Model at 3.0% of first year revenue for samples, field gear, and job supplies.	Underestimating sample and field supply use.
Project-Specific Travel & Per Diem	Variable	Model at 2.5% of first year revenue for site mobilization and field travel.	Forgetting remote site mobilization.
Wages	Semi-fixed	Use about $37.7K/month in first year payroll, then step up as full-time staff grows.	Hiring before utilization supports staff.

How does break-even shift from a lean launch to a base case and a full buildout in geotechnical engineering?

Scenario table

Break-even rises as fixed staffing and field overhead scale up, but the service mix also improves margin. The lean case is the tightest; the full case has the best cushion, yet it still depends on utilization and subcontractor access.

Planning assumptions only; actual break-even will move with utilization, subcontractor rates, and project mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$651K	$114K	$537K	82.5%	$0	Tightest cushion; a small utilization miss can push it below break-even.
Base staffing case	$1.024M	$156K	$869K	84.8%	$0	Clean planning anchor; steady pipeline and crew use keep it at break-even.
Full scaled service case	$1.290M	$165K	$1.125M	87.2%	$0	Best cushion on paper, but only if lab volume and subcontractors hold.

What breaks the break-even plan if project demand slips?

Stress test

Year 1 clears break-even in Month 6 only if proposal flow, field utilization, and subcontract rates stay near plan. The main risks are fewer site investigations, higher drilling and lab costs, and fixed payroll that does not flex down.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$751,394	$278,788 cushion	Year 1 has room, but the cushion is not huge.
Revenue shortfall	Site-investigation revenue runs 10% below plan.	$751,394	$175,770 cushion	A 10% sales miss cuts the cushion by about $103k.
Fixed-cost pressure	Monthly overhead rises by $1,000.	$766,545	$263,636 cushion	Each extra $1,000 a month adds about $14,545 to annual break-even.
Margin pressure	Delivery costs rise from 17.5% to 20.0% of revenue.	$774,875	$255,307 cushion	A 2.5-point margin drop adds about $23.5k to break-even.
Combined pressure	Site-investigation revenue falls 10%, monthly overhead rises by $1,000, and delivery costs move to 20.0% of revenue.	$789,875	$137,289 cushion	Slow sales plus committed payroll cut the cushion nearly in half.

What should a geotechnical founder verify before locking in trucks, labs, and hires?

Founder checklist

Don’t commit to the full fixed spend until you have signed or near-signed work and enough cash to survive the Month 5 trough. This model carries about $51.7K a month in fixed load, and break-even does not hit until Month 6.

1PipelineNear-signed

Do not lock in the full team until you have signed or near-signed projects, because early billable work has to carry the fixed load.

2Unit MarginLow-teens CM

Keep drilling, lab, consumables, and travel costs in the low teens, or the payroll base will crowd out break-even.

3Field Capacity60-100 hrs

Confirm subcontractor drilling slots and third-party lab turnaround can cover the projected 60 to 100 billable hours, or report dates will slip.

4Fixed Load$51.7K/mo

This burn includes the truck, admin software, insurance, rent, and payroll, so the pipeline has to cover it every month.

5Cash Trough$657K

Keep the Month 5 cash trough above $657K and stage the $340K capex build so truck, field gear, and lab spend do not land at once.

6Ramp TimingMonth 6 / Month 13

Aim to reach break-even by Month 6, then add the lab technician and business development manager in Month 13 only when utilization supports the extra payroll.