IT Help Desk Break-Even Point: About $116K Monthly Revenue

Fixed costs $20.5K/mo Base overhead

Contribution margin 65% After variable costs

Break-even revenue $31.5K/mo Cover all overhead

Break-even timing Month 21 Model break point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when the model crosses break-even.

Lean Base Full

Monthly revenue Revenue sets how much margin is left for fixed costs. $ Low revenue High revenue Variable expenses These are direct costs that rise with support volume. $ Low costs High costs

Money available to cover fixed costs $122,000 $180,000 revenue - $58,000 variable expenses

Margin ratio

68%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which IT help desk expenses stay fixed, and which move with sales?

Cost classification

Break-even shows Month 21, but that only holds if each expense scales the right way. Treat usage-driven tools, telecom, and advertising as revenue-linked, while rent, compliance, and training stay in monthly overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Senior and Junior IT Support Technician wages	Semi-fixed	Add payroll in hiring steps as support volume grows.	Treating all technician payroll as instantly flexible.
Remote Access Software Licensing	Variable	Use the first year assumption of 8% of revenue.	Pricing licenses as fixed when seats scale.
Ticketing System and CRM Platform Costs	Variable	Use the first year assumption of 4% of revenue.	Missing per-user or customer-based tiers.
VoIP and Telecommunications Infrastructure	Variable	Use the first year assumption of 5% of revenue.	Underpricing call-heavy clients.
Office Rent and Utilities	Fixed	Include $8,500 per month in base overhead.	Assuming remote delivery removes all overhead.
Insurance and Legal Compliance	Fixed	Include $1,800 per month across the planning range.	Leaving compliance out of break-even.
Professional Development and Training	Fixed	Include $2,500 per month before margin is tested.	Cutting training before service quality is stable.
Digital Marketing and Advertising	Variable	Use 12% of revenue, with $180,000 as first year budget context.	Treating customer acquisition as free.

How does break-even change from a lean Year 1 setup to a base Year 2 team and a full Year 3 support load?

Scenario table

Break-even rises because payroll jumps faster than tool and marketing percentages fall. The service only gets safer when recurring monthly plans and hourly overflow both keep pace with each staffing step.

Planning cases only; these figures are model assumptions, not a guarantee of results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 support mix	$116,154	$40,654	$75,500	65%	$0	Small misses can push it below break-even.
Base Year 2 support scale	$168,917	$53,210	$115,708	68.5%	$0	At this scale, revenue has to hold steady to stay even.
Full Year 3 capacity case	$222,338	$62,255	$160,083	72%	$0	Best cushion, but payroll still sets the pace.

What breaks the break-even plan fastest for this IT help desk?

Stress test

The base plan breaks even at about $116,154 a month, but it is not forgiving. A 10% revenue miss, higher fixed costs, or weaker margin from unbilled support time can push it into a monthly loss fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$116,154	$0 gap	No cushion means any miss matters.
Revenue shortfall	Monthly revenue runs 10% below plan.	$116,154	$7,550 gap	A small top-line slip turns into a loss.
Fixed-cost pressure	Fixed costs rise 10% to about $83,050 a month.	$127,769	$11,615 gap	Overhead growth raises the hurdle immediately.
Margin pressure	Contribution margin slips from 65% to 60%.	$125,833	$9,679 gap	Unbilled time lifts break-even without more sales.
Combined pressure	Revenue is 10% below plan, fixed costs are 10% higher, and margin falls to 60%.	$138,417	$33,878 gap	Three hits together create about a $20,400 monthly loss.

What should you prove before you lock the full help desk build and hiring plan?

Founder checklist

You need a clear path to about $116K in monthly revenue before you lock the full setup and staffing plan. If the plan mix cannot support roughly 1,256 active recurring customers at a weighted $92.49 price, the big spend is too early.

1Revenue Proof$116K/mo

Verify the sales path can reach about $116K monthly revenue, or roughly 1,256 active recurring customers at a weighted $92.49 plan price, before you commit to full hiring.

2Fixed Load$75.5K/mo

Budget about $55K in monthly payroll plus $20.5K in fixed overhead, and confirm early revenue can carry the $75.5K base cost without extra management layers.

3Margin Mix35% total

Check that 17% tool COGS and 18% other variable costs still leave enough room for support work, collections, and growth spend.

4Tech Ramp5 techs

Use the first-year setup of 3 senior and 2 junior technicians to see whether 2.5 billable hours per active customer fits the service promise without strain.

5Cash Buffer$27K / M28

Keep enough cash for the Month 28 low point, because minimum cash falls to $27K before payback shows up in Month 49.

6Launch Readiness$240K capex

Hold back the full $240K setup spend until onboarding, security access, backup coverage, escalation rules, and customer success handoffs are written and tested.