Guardianship Accounting Service Break-Even: $74K Monthly Revenue

Fixed costs $48.7K/mo Monthly base load

Contribution margin 87.5% After variable costs

Break-even revenue $55.7K/mo Revenue target

Break-even timing Month 5 Launch ramp

Break-even calculator

Test how monthly revenue, variable expenses, and fixed monthly costs shape break-even for a guardianship accounting service.

Lean Base Full

Monthly revenue Revenue funds the margin that covers fixed overhead. $ Low sales High sales Variable expenses These are direct costs that move with each new case. $ Low costs High costs

Money available to cover fixed costs $380,179 $427,167 revenue - $46,988 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs These are monthly overhead costs the margin must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which guardianship accounting expenses are fixed, and which move with caseload?

Cost classification

Break-even gets reliable only when stable overhead is split from client-linked delivery expense. In this model, fixed monthly overhead supports the base practice, while revenue-based fees and stepped hiring move as caseload grows.

Expense	Cost	Break-Even Treatment	Common Mistake
Errors and Omissions Insurance	Fixed	Use $1,800 per month as base overhead from Month 1 through Month 60.	Tying it to each case instead of treating it as required practice coverage.
Cybersecurity Liability Insurance	Fixed	Use $650 per month as recurring overhead for secure financial record handling.	Leaving it out because it doesn’t create revenue directly.
Secure Office Rent	Fixed	Use $4,500 per month in the fixed overhead pool for the planning range.	Spreading rent across clients and making margins look too stable.
Practice Management Software	Fixed	Use $950 per month as platform overhead unless a separate usage tier is modeled.	Classifying the full subscription as variable without evidence of per-client pricing.
Cloud Accounting Infrastructure and API Access	Variable	Model at 8.0% of first-year revenue, declining to 6.0% by the mature year.	Using a flat dollar amount and missing margin lift as the percentage improves.
Payment Processing and Secure Document Handling	Variable	Model at 4.5% of first-year revenue, declining to 3.5% by the mature year.	Putting payment and document handling in overhead when they rise with volume.
Senior Fiduciary Accountant	Semi-fixed	Add capacity in hiring steps: 1.0 FTE in the first year, rising to 5.0 FTE by the mature year.	Modeling accountant labor as perfectly variable instead of adding full people in blocks.
Case Bookkeeper	Semi-fixed	Step staffing from 2.0 FTE in the first year to 9.0 FTE by the mature year as caseload expands.	Waiting too long to add capacity, which hides service risk before break-even.

How does break-even shift from a lean launch team to a full operating model for a guardianship accounting service?

Scenario table

Break-even improves as revenue scales faster than variable cost, even though fixed load rises. The key is simple: a higher-case-load model gives you more cushion, but only if case intake keeps pace.

Planning cases only; these figures are model assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch team case	$128.2k	$16.0k	$64.6k	87.5%	$47.5k	Thin cushion; a small volume dip can push results toward break-even.
Scaled small team case	$427.2k	$47.0k	$122.2k	89.0%	$258.0k	Comfortable cushion; break-even sits well below the modeled run rate.
Mature higher-case-load case	$800.8k	$76.1k	$191.7k	90.5%	$533.1k	Strong cushion; scale helps absorb the heavier fixed team.

What breaks first if intake slows or costs rise?

Stress test

Year 1 has a wide cushion, but it depends on steady intake and tight support spend. If CAC stays above $450, onboarding slips, or staffing moves ahead of confirmed caseload, the buffer can narrow fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$739k	$799k cushion	The Year 1 plan clears break-even with room to absorb normal variance.
Revenue shortfall	Year 1 revenue falls 30% from the base plan.	$739k	$338k cushion	CAC above $450 or onboarding delays would eat this cushion first.
Fixed-cost increase	Add $10k/month of fixed overhead, equal to the Year 1 marketing run rate.	$853k	$685k cushion	Extra overhead is manageable, but it cuts room for slow caseload ramp.
Margin pressure	Variable expenses rise 1 point, from 4.5% to 5.5% of revenue.	$747k	$791k cushion	Too many $195/month matters would make the margin less forgiving.
Combined pressure	Revenue falls 20%, fixed overhead adds $10k/month, and variable expenses rise 1 point.	$861k	$369k cushion	Hiring ahead of confirmed caseload is the biggest failure point here.

What should a guardianship accounting founder verify before locking office space, hires, and build spend?

Founder checklist

Before you lock more fixed spend, make sure the model still clears the Month 2 cash trough and the $739K break-even point. The test is simple: $760K minimum cash, $150.5K of build capex, $120K Year 1 marketing at $450 CAC, and a $511 weighted monthly subscription price that can carry the team.

1Cash Cushion$760K

Verify opening cash stays above the $760K minimum in Month 2, because that is where a good launch can still run out of runway.

2Build Fund$150.5K

Fund the $150.5K capex for the reporting engine, data vault, digitization center, workstations, and secure networking before launch, or the operating plan starts behind.

3Market Proof$120K / $450 CAC

That budget buys about 267 cases at Year 1 CAC, so validate referrals and conversion before you raise spend.

4Fixed Load$48.7K/mo

Check that the $48.7K monthly fixed load stays covered, and don't add a bigger office until revenue clears the $739K break-even point.

5Team Ramp5 FTE

Verify the opening 5 FTE team, plus E&O and cyber coverage, can take new guardianship files without backlog or rework.

6Price Mix$511/mo

Test whether the $511 weighted monthly subscription price still leaves room after 8% cloud cost and 4.5% payment and document handling.