IT Asset Management Break-Even Revenue: ~$124K Per Month

Fixed costs $91.1K/mo Payroll + overhead

Contribution margin 74% After variable costs

Break-even revenue $124K/mo Monthly target

Break-even timing Month 19 Model payback point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for an IT asset management service.

Lean Base Full

Monthly revenue This is the monthly sales pool that must cover direct costs and overhead. $ Lower sales Higher sales Variable expenses Use costs that rise with revenue, like sales commissions, digital ads, payment fees, cloud, and support. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $80,200 $105,500 revenue - $25,300 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the contribution margin has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with sales in this asset management model?

Cost classification

Break-even is only reliable if fixed burn and sales-linked costs are separated. In the first year, $59.2k/month of core payroll and $25k/month of marketing budget can swamp small errors in revenue-linked assumptions.

Expense	Cost	Break-Even Treatment	Common Mistake
Core payroll	Fixed	Treat planned salaries as monthly burn. First-year staffed roles total about $59.2k/month before benefits and payroll taxes.	Letting payroll flex with revenue when the hiring plan is already committed.
Office rent and utilities	Fixed	Use $3,500/month from Month 1 through Month 60: $3,000 rent plus $500 utilities.	Allocating rent per customer and making break-even look easier at low volume.
Legal, accounting, insurance, website, training, and supplies	Fixed	Keep these operating overhead lines fixed at $2,650/month based on the recurring monthly assumptions.	Hiding small fixed lines; together they still raise the monthly revenue hurdle.
Cloud hosting, API integrations, and Tier 1 support	Variable	Deduct the first-year service delivery load as 12% of revenue: 7% hosting, 3% integrations, and 2% Tier 1 support.	Treating hosting as flat forever instead of tying it to customer and asset usage.
Sales commissions	Variable	Model commissions at 6% of revenue in the first year, then use the forecasted lower rates as scale improves.	Counting bookings as revenue but forgetting the commission hit on contribution margin.
Digital advertising spend	Variable	Use the 7% revenue-linked ad line, and also show the $300k first-year marketing budget as $25k/month when committed.	Burying the $300k budget inside overhead without showing its monthly cash impact.
Payment processing fees	Variable	Apply 1.5% of revenue in the first year, falling to 1.0% by the mature year.	Ignoring small transaction fees; they matter once subscription revenue scales.
Support and customer success capacity	Semi-variable	Start with the base Customer Success Manager salary, then add support roles as customer load rises from Month 13 onward.	Keeping support payroll flat while asset counts and customer onboarding work increase.

How does break-even change as IT asset management shifts from a lean setup to a full-service model?

Scenario table

Break-even moves up fast as service depth, staffing, and marketing load increase. The lean case has the lowest revenue bar, while the full-service case needs the most monthly volume to cover fixed overhead.

Planning assumptions only; actual break-even will move with pricing, service mix, and overhead.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean core-tracking setup	$124k	$32.9k	$661k	73.5%	$0	Lowest bar, but marketing still needs tight control.
Base mixed-module setup	$169k	$40.6k	$786k	76.0%	$0	Middle case; better margin mix, but overhead still matters.
Full-service expanded setup	$245k	$52.2k	$928k	78.7%	$0	Highest revenue hurdle, so sales density has to stay strong.

What pushes this IT asset management model back into loss?

Stress test

Year 1 needs about $124,000 in monthly revenue to stay at break-even. A 10% sales miss, a 10% fixed-cost bump, or a margin squeeze from higher support load can push the model back into loss, especially if onboarding slows or CAC tops $800.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; current pricing and costs hold.	$124,000/month	$0 cushion	At plan, the model is right on the line.
Revenue shortfall	Monthly revenue falls 10% to $111,600.	$124,000/month	$12,400 gap	A 10% miss leaves no cushion.
Fixed-cost increase	Fixed overhead rises 10% across wages and office costs.	$136,400/month	$12,400 gap	A small overhead bump eats the full cushion.
Margin pressure	Variable burden rises from 26.5% to 31.5% as support load climbs.	$133,000/month	$9,000 gap	Support load above the planned 2% Tier 1 burden raises the hurdle.
Combined pressure	Revenue falls 10%, fixed overhead rises 10%, and variable burden rises to 31.5%.	$146,300/month	$34,700 gap	Delayed onboarding, CAC above $800, or weak module attach can widen the gap fast.

Can this IT asset management service reach break-even before you lock in lease, hires, and launch spend?

Founder checklist

Test the pricing mix, CAC, and staffing plan against the Month 19 break-even path before you commit. If Year 1 customers do not average 75 managed assets with 40% software and 30% compliance attach, the fixed base will outrun cash.

1Demand Proof$352/mo

Verify Year 1 customers really average 75 managed assets with 40% software and 30% compliance attach, because that mix is what makes the $250 core price stick.

2Launch Demand$800 CAC

Keep CAC near $800 and stage the $92K launch capex across setup, workstations, licenses, network, audit, website, servers, and launch assets before you commit.

3Contribution73.5% CM

Check that the Year 1 cost stack still leaves about 73.5% contribution margin after 12% COGS and 14.5% variable costs.

4Fixed Load$6.95K/mo

Review the $3K rent inside the $6.95K monthly overhead before signing, because fixed costs stay on even if sales are slow.

5Staff RampMonth 13

Confirm reporting cadence, access controls, and ticketing before the Month 13 software engineer and support specialist ramp adds more work.

6Runway Low$61K

Make sure cash holds above the Month 18 low of $61K, or the Month 19 break-even plan can slip behind payroll and launch timing.