Legacy Planning Services Break-Even: $124k Monthly Revenue

Fixed costs $79.5K/mo Monthly overhead base

Contribution margin 72% After variable costs

Break-even revenue $110.4K/mo Revenue to cover fixed

Break-even timing Month 6 Model ramp point

Break-even calculator

See whether monthly revenue can cover the variable client costs and the fixed overhead of a legacy planning practice.

Lean Base Full

Monthly revenue Revenue is the pool that pays variable costs and then fixed overhead. $ Lower sales Higher sales Variable expenses These rise with each client, such as referral commissions, hospitality, and filing fees. $ Low direct costs High direct costs

Money available to cover fixed costs $139,080 $193,167 revenue - $54,087 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly costs the business pays even when new client volume is light. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with sales in a legacy planning firm?

Cost classification

Break-even is reliable only when fixed overhead, client-level delivery expense, and growth spend sit in separate buckets. Fixed lease, insurance, software, and payroll set the monthly hurdle; reports, filing fees, events, and referral commissions move with sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Premium Office Lease — $12,000/month	Fixed	Include in monthly fixed overhead for all break-even months.	Spreading it by client and hiding the true monthly hurdle.
E and O Insurance — $2,500/month	Fixed	Carry as recurring overhead from Month 1 through Month 60.	Treating it as optional until the first client engagement.
Principal Attorney — $220,000/year	Fixed	Convert to about $18,333/month and include before client volume.	Matching salary only to closed matters instead of capacity.
Annual Marketing Budget — $120,000 first year; CAC $2,500	Semi-variable	Budget the base spend, then test client volume using CAC.	Treating all acquisition spend as fixed overhead.
External Valuation Reports — 8% in first year	Variable	Apply as a delivery expense that rises with billed client work.	Treating client-specific reports as overhead.
Specialized Filing Fees — 4% in first year	Variable	Tie fees to matters that require filings.	Averaging filings across all clients regardless of service mix.
Client Hospitality and Events — 6% in first year	Variable	Model as sales-linked spend, not rent-like overhead.	Letting events scale without checking margin impact.
Referral Partner Commissions — 10% in first year	Variable	Deduct from revenue on referred clients before contribution margin.	Treating referral commissions as overhead.

How does break-even move from staffed launch to base growth to full capacity in this legacy planning service?

Scenario table

Higher revenue helps, but the fixed team load rises too, so break-even shifts with each staffing step. Year 1 tests pipeline proof, Year 3 tests staffing scale, and Year 5 tests multi-advisor leverage.

Planning figures are researched assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Staffed launch	$193k	$54k	$895k	72%	-$756k	Below break-even; pipeline proof is the main risk.
Base growth	$590k	$136k	$1,170k	77%	-$716k	Still below break-even; staffing scale must lift revenue.
Full capacity	$1,005k	$181k	$1,753k	82%	-$929k	Margin improves, but fixed load still outpaces revenue.

What breaks the break-even plan for a legacy planning firm?

Stress test

The base plan clears break-even, but the cushion narrows fast if client intake slows, referral and hospitality costs rise, or fixed staffing and office costs creep up. A combined shock can push the needed revenue close to the first-year run rate.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,325,000	$993,000 cushion	The plan clears break-even, but the margin of safety is not huge.
Revenue shortfall	Year 1 revenue lands 15% below plan.	$1,325,000	$646,000 cushion	Slower client acquisition cuts the cushion by about $347,000.
Fixed-cost pressure	Monthly fixed commitments rise by $10,000.	$1,491,000	$827,000 cushion	One extra layer of overhead pushes break-even up fast.
Margin pressure	Variable costs rise 3 points to 31% of revenue.	$1,382,000	$935,000 cushion	Referral commissions, hospitality, and filing costs eat into contribution.
Combined pressure	Revenue falls 15%, fixed costs rise $10,000 a month, and variable costs rise 3 points.	$1,556,000	$414,000 cushion	The cushion shrinks hard, so Month 6 break-even can slip.

Can this legacy planning firm support the lease, hires, and ad spend before break-even?

Founder checklist

Don’t lock in the lease or full team until booked work can cover the $79.5K monthly fixed base and the 28% variable load. Do not add fixed commitments without a credible path to $1.243M monthly revenue. Month 5 needs $603K of cash, and break-even lands in Month 6, so the runway test comes first.

1Lease test$12K/mo

Prove referral and client meeting volume before you sign the office lease, because fixed space only works when the pipeline is already active.

2Payroll base$59.6K/mo

Year 1 salaries total about $715K, so verify booked work can carry the team before you hire into a thin pipeline.

3Platform load$19.9K/mo

Software, IT, legal research, and compliance add up fast, so make sure the platform is funded before launch.

4Margin floor72% CM

Year 1 variable expenses are 28% of revenue, so every dollar still leaves $0.72 to cover fixed cost and fund break-even.

5Capacity ramp15/4/20/3 hrs

The Year 1 service mix is labor-heavy, so staff coverage has to handle estate planning, investment work, succession work, and trust administration without slipping the Month 6 target.

6Launch demand48 clients

A $120K marketing budget at $2,500 CAC can fund about 48 paid-acquisition clients if CAC holds, but only if you can still hold the $603K cash cushion in Month 5.