IT Infrastructure Planning Break-Even: About $58K Per Month

Fixed costs $35.5K/mo Base payroll + overhead

Contribution margin 72% After variable costs

Break-even revenue $49.3K/mo Cover monthly base

Break-even timing Month 5 Model break point

Break-even calculator

Test monthly revenue, variable expenses, and fixed overhead to see where break-even lands for this IT planning service.

Lean Base Full

Monthly revenue Revenue sets the pool that pays direct costs and overhead. $ Lower revenue Higher revenue Variable expenses Direct costs rise with delivery and client work. $ Lean costs Heavy costs

Money available to cover fixed costs $339,300 $392,200 revenue - $52,900 variable expenses

Margin ratio

87%

Covers fixed costs

Yes

Fixed monthly costs These monthly costs stay in place even when sales slow. $ Tight overhead Heavy overhead

Break-even chart Revenue Total costs

Which IT infrastructure planning expenses are fixed, and which move with sales?

Cost classification

Month 5 breakeven only holds if labor, revenue-linked delivery expenses, and setup cash stay in their lanes. Keep the $88,000 setup spend out of monthly operating break-even.

Expense	Cost	Break-Even Treatment	Common Mistake
Principal IT Architect, Senior IT Consultant, and Operations & Admin Assistant salaries	Fixed	Include as monthly payroll capacity before calculating revenue needed to break even.	Treating senior planning labor as free founder time.
Junior IT Consultant salary	Semi-fixed	Add as a capacity step because the role starts after launch in Month 7.	Spreading the role evenly across the launch period.
Software Licensing for Project Tools	Variable	Model at 6% of revenue in the first year.	Booking it as flat overhead despite revenue-linked usage.
Specialized Subcontractor Fees	Variable	Model at 4% of revenue in the first year.	Forgetting subcontractors reduce contribution margin.
Marketing & Client Acquisition	Variable	Model at 15% of revenue in the first year for operating break-even.	Using only the annual budget and missing sales-linked spend.
Project-Specific Travel & Expenses	Variable	Model at 3% of revenue in the first year.	Treating client travel as fixed office overhead.
Recurring admin overhead	Fixed	Include $3,800 per month for insurance, legal, office, communications, stipends, collaboration software, and hosting.	Mixing monthly overhead with setup investments.

How does break-even change across lean, base, and full staffing?

Scenario table

Break-even moves up as staffing grows because fixed payroll rises faster than the margin gains from better mix. The lean year is the easiest to fund; the full year needs signed recurring work before you add headcount.

Planning figures only; actual break-even shifts with utilization, pricing, and hiring timing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 staffing	$54.5k	$15.3k	$39.2k	72.0%	$0	Closest to cash break-even if utilization stays high.
Base Year 2 staffing	$77.1k	$19.1k	$58.0k	75.2%	$0	Needs recurring reviews and roadmap work to cover the larger payroll.
Full Year 3 staffing	$86.1k	$18.5k	$67.6k	78.5%	$0	Works only when pipeline is locked before the next hire.

What breaks this break-even plan for IT infrastructure planning?

Stress test

The base plan has room, but it gets tight fast if client starts slip, overhead creeps up, or subcontractor use pushes margin down. The combined case is the real break point, because lower revenue and higher costs hit at once.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$579,167	$422,833 cushion	Healthy if launches stay on schedule.
Revenue shortfall	Revenue falls 20% from the current plan.	$579,167	$222,433 cushion	Delayed client starts cut the cushion fast.
Fixed-cost pressure	Fixed overhead rises by $10,000 a month.	$745,833	$256,167 cushion	Payroll or overhead creep raises the floor.
Margin pressure	Contribution margin falls 5 points to 67%.	$622,388	$379,612 cushion	Heavier subcontractor use makes each dollar less efficient.
Combined pressure	Revenue falls 30%, margin drops to 67%, and fixed overhead rises by $10,000 a month.	$801,493	$100,093 gap	This flips the plan into a cash drain.

Can four monthly client engagements clear the break-even target before you add payroll and software?

Founder checklist

If you can land at least four client engagements a month, hold contribution margin near 72%, and keep the Year 1 service mix above the $58K break-even test, the model can work. Don’t lock in junior support or lease-like spend until that is true.

1Demand proof4+ engagements/mo

Verify at least four client engagements a month can close at the model’s test pricing, because that is the fastest sign the pipeline can cover break-even.

2Overhead floor$39.2K/mo

The Year 1 fixed load is about $39.2K a month, and insurance, legal, collaboration software, and hosting need to be live before client work starts.

3Margin guard72% CM

Keep contribution margin, the cash left after direct costs, near 72% by limiting subcontractors and travel, or the break-even line moves out fast.

4Support hireMonth 7

Delay junior support until the discovery workflow is repeatable, since the first months should prove demand before you add another salary.

5Cash cushion$821K

Keep the $88K setup cash separate from operating reserves and watch the Month 2 minimum cash need of $821K, because setup spend does not buy runway.

6Launch mix$372K mix

Check that the opening pipeline can support the Year 1 service math: $176K from initial blueprint design, $6K from strategic roadmap, $144K from ongoing review, and $46K from ad-hoc consulting.