Legal Nurse Consulting Break-Even Analysis: $317K Monthly Target

Fixed costs $21.9K Monthly base

Contribution margin 69% After variable costs

Break-even revenue $31.7K Monthly target

Break-even timing Month 17 Model crossover

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and the fixed cost base.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before direct costs. $ Lower revenue Higher revenue Variable expenses Direct costs like nurse fees, records work, and travel rise with each case. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $23,500 $34,000 revenue - $10,500 variable expenses

Margin ratio

69%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly overhead costs you cover before profit starts. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which legal nurse consulting expenses are fixed, and which move with sales?

Cost classification

Break-even gets shaky when fixed monthly bills are mixed with revenue-based fees. In the first year, separate the $8,350 monthly overhead from percentage expenses, then keep startup capex out of operating break-even.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $3,500 per month as base overhead from Month 1 through Month 60.	Treating rent as tied to case volume.
Professional Insurance	Fixed	Include $1,200 per month before any client work is billed.	Adding it only after larger attorney accounts arrive.
Software Licenses	Semi-fixed	Model the $800 monthly base, then review when users or case load step up.	Assuming software rises smoothly with every billed hour.
Office Supplies	Semi-variable	Start with the $250 monthly plan, but expect usage to rise with record review volume.	Locking supplies as fully fixed for all volume levels.
Legal & Accounting	Fixed	Include $1,500 per month as recurring professional support.	Moving routine compliance work below the break-even line.
Medical Database Subscriptions	Variable	Apply 8% of revenue in the first year, declining to 6% by the mature year.	Classifying database access as a flat software bill.
Contractor Nurse Fees	Variable	Apply 12% of revenue in the first year, declining to 8% by the mature year.	Blending contractor fees with fixed payroll salaries.
Marketing & Client Acquisition	Semi-variable	Use the 8% revenue-linked expense and track the $48,000 first-year marketing budget separately.	Counting campaign spend as startup capex instead of operating spend.

How does break-even change from a lean solo setup to a base practice and a fuller firm?

Scenario table

As payroll and marketing grow, fixed costs rise faster than the margin cushion, so break-even revenue climbs. The lean solo setup is easiest to cover; the fuller firm needs far more monthly volume to stay safe.

Planning assumptions only. Real break-even moves with case mix, billing pace, and referral flow.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo virtual setup	$12,101	$3,751	$8,350	69%	$0	Near break-even; a small miss in referrals or billing turns it negative.
Base operating case	$31,730	$9,837	$21,892	69%	$0	Break-even needs steady attorney work and tighter control of payroll growth.
Fuller firm signal	$92,017	$22,084	$69,933	76%	$0	Much higher revenue covers the larger team, but timing of hiring still drives risk.

What pushes legal nurse consulting past break-even?

Stress test

Base break-even is $31,700 a month on a $21,892 fixed monthly load and 69% contribution margin. The biggest risks are slower attorney referrals, higher contractor nurse fees, and overhead creep.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$31,700	$0 gap	Break-even is the floor, not a buffer.
Revenue shortfall	Monthly revenue runs 10% below break-even.	$31,700	$2,200 gap	Slower attorney referrals leave the monthly run rate short.
Fixed-cost pressure	Fixed overhead rises 10%.	$34,900	$3,200 gap	Rent, insurance, or staff overhead can outgrow the base plan.
Margin pressure	Variable expenses rise from 31% to 36%.	$34,200	$2,500 gap	Higher contractor nurse fees, travel, or software cut margin.
Combined pressure	Fixed costs rise 10%, variable expenses rise to 36%, and revenue is 10% short.	$37,600	$5,800 gap	Referral slowdown plus cost creep creates a sharp monthly hole.

What should a legal nurse consulting founder verify before signing the lease and hiring?

Founder checklist

Verify demand, pricing, workflow, and cash before you lock in fixed costs. This model breaks even in Month 17, so the real test is whether referrals, rates, and utilization can carry the $8.35K monthly overhead and the slower cash build.

1Referral pipeline$800 CAC

Confirm enough attorney referrals exist to keep Year 1 acquisition near $800 per customer before you commit to bigger marketing spend and the first rent check.

2Lease load$8.35K/mo

Check that office rent, malpractice and professional insurance, software, telecom, supplies, legal and accounting, security, and utilities fit inside the monthly overhead before you sign the lease.

3Price test69% CM

Prove attorneys will buy at $85, $95, $110, and $125 per hour, because the model needs enough spread after direct case costs.

4Workflow load45/30/15/10

Keep the case mix near 45% medical record review, 30% case merit analysis, 15% expert reports, and 10% ongoing consultation so the first-year 8.5 billable hours per active customer stay realistic.

5Ops ramp$12K / $85K

Test the case management software before the $12,000 implementation, and delay the senior nurse until utilization can carry the $85,000 salary.

6Cash runwayMonth 17

Protect cash through Month 17 break-even and Month 36 payback, with the $737,000 low point covered before you add more headcount or marketing.