GPS Jamming Detection Break-Even Analysis: $101K Monthly Revenue

Fixed costs $78.9K/mo Base overhead plus payroll

Contribution margin 90.5% Left after variable costs

Break-even revenue $87.2K/mo Monthly target to cover

Break-even timing Month 26 First break-even month

Break-even calculator

Test monthly revenue against variable expenses and fixed costs to see where break-even lands.

Lean Base Full

Monthly revenue Revenue is the top line that funds everything else. $ Early demand Scaled demand Variable expenses These are direct costs that rise with sales, like cloud processing and sales fees. $ Low fees Higher fees

Money available to cover fixed costs $84,713 $92,583 revenue - $7,870 variable expenses

Margin ratio

91%

Covers fixed costs

$30,245 short

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

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with sales in a GPS jamming detection business?

Cost classification

Break-even is only reliable if stable overhead stays fixed and usage-linked work moves with volume. Here, the model reaches break-even in Month 26, so misclassifying dispatch, travel, or cloud usage can hide margin pressure.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent and utilities	Fixed	Use the $6,500 monthly charge as baseline overhead from Month 1 through Month 60.	Scaling rent with revenue instead of holding it flat within the current office capacity.
Security operations center monitoring	Fixed	Model the $4,000 monthly monitoring center charge as required capacity before incident volume grows.	Treating core monitoring as per-alert labor and overstating early contribution margin.
Software licensing and cyber security	Fixed	Use the $2,500 monthly license and security spend as recurring platform overhead.	Dropping it below the gross margin line and understating the revenue needed to break even.
Cloud infrastructure and data processing	Variable	Apply 4.5% of first-year revenue, about $21,600 on $479,000, then reduce the rate in later years per the model.	Modeling cloud spend as flat when signal data volume rises with customers and alerts.
Sales commissions and transaction fees	Variable	Apply 5.0% of first-year revenue, about $24,000 on $479,000, because fees move with closed sales and billings.	Forgetting commissions in break-even math and overstating cash generated by each new account.
Security analyst and support coverage	Semi-fixed	Add headcount in steps as coverage needs rise, from 2 analyst FTEs in the first year to 8 by the mature year.	Spreading wages as a smooth percentage of revenue instead of adding people when service capacity runs out.
Field verification, travel, and technician overtime	Semi-variable	Keep base response readiness separate, then add incident-driven travel and overtime as alert volume and radius expand.	Treating field response as fixed when travel distance and after-hours work drive margin pressure.

How does break-even change from lean launch to base case to full scale for this GPS jamming detection service?

Scenario table

Lean launch stays well below break-even because Year 1 revenue does not cover the monthly load. Base case lands on the line, and the full case adds a much wider cushion if the contract mix and response load hold.

Planning assumptions only; real results will move with contract mix, response load, and staffing depth.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$39.9k	$3.8k	$91.4k	90.5%	-$55.3k	Still about $55k short each month.
Base break-even case	$101.0k	$9.6k	$91.4k	90.5%	$0.0k	This is the break-even line, at about 158 clients on the Year 1 mix.
Full-scale Year 5 case	$481.8k	$26.5k	$293.9k	94.5%	$161.4k	Healthy cushion, but enterprise mix and response load still matter.

What breaks the break-even plan for a GPS jamming detection service?

Stress test

Break-even needs about $87.2K a month at the current cost mix, and the model does not cross it until Month 26. Year 1 revenue averages about $39.9K a month, so the base plan still carries a $47.3K monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$87.2K/month	$47.3K gap	Break-even is above the Year 1 run rate.
Revenue shortfall	Year 1 revenue slips 20% to $31.9K/month.	$87.2K/month	$55.2K gap	Slower client wins widen the monthly loss.
Fixed-cost increase	Fixed monthly load rises 10% to $86.8K.	$95.9K/month	$56.0K gap	More overhead pushes the floor higher.
Margin pressure	Variable expenses rise from 9.5% to 11.4% of revenue.	$89.1K/month	$49.2K gap	Overtime and travel eat into contribution.
Combined pressure	Revenue falls 20%, fixed load rises 10%, and variable expenses rise to 11.4%.	$98.0K/month	$66.0K gap	Delayed enterprise contracts, long travel, and overtime can stall breakeven.

What should you verify before locking in the first full build?

Founder checklist

Don't lock in the full build until you have signed or near-signed recurring contracts and proof that the mix lands near the $639 Year 1 weighted price. With about $78.9K of monthly fixed load, $570K of launch capex, and a -$2.818M cash trough in Month 25, runway has to hold.

1Recurring DemandNear-signed

Confirm signed or near-signed recurring contracts before you add staff, because the model stays negative in Year 1 and only reaches break-even in Month 26.

2Price Mix$639/mo

Test that the basic, fleet, and enterprise mix actually holds the $639 Year 1 weighted monthly price, or the revenue plan slips fast.

3CAC Test$1.2K CAC

Prove paid acquisition can stay near the $1,200 Year 1 CAC before you scale the $150K marketing budget, so the funnel does not outrun sales.

4Fixed Burn$78.9K/mo

Here’s the quick math: Year 1 payroll is about $62.9K a month and fixed overhead is $16.0K, so the base burn is roughly $78.9K a month before marketing and variable costs.

5Launch Capex$570K

Validate sensor calibration, response radius, and equipment uptime before you spend the $570K launch capex, because hardware only matters if the field data is reliable.

6Runway BufferMonth 25

Delay support hiring until incident volume justifies it, and protect cash because minimum cash falls to -$2.818M in Month 25 before the business reaches break-even in Month 26.