Break-Even Analysis for a VA Disability Support Service: Month 4

Break-Even Metric Cards

Fixed costs $43.7K/mo Launch run-rate

Contribution margin 78% After direct costs

Break-even revenue $56.0K/mo Monthly target

Break-even timing Month 4 Ramp point

Break-Even Calculator

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs shape the monthly break-even point for a veteran support service.

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and overhead. $ Lower sales Higher sales Variable expenses Direct costs rise with each new case or service hour. $ Lower direct Higher direct

Money available to cover fixed costs $111,767 $143,167 revenue - $31,400 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in this disability-rating assistance business?

Cost classification

Break-even is only useful if fixed overhead and revenue-linked spend are separated cleanly. In this model, rent sets the monthly floor, while retrieval, portal, referral, and card fees rise with client revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use the $3,500/month lease as overhead in the break-even formula.	Tying rent to client count instead of capacity.
Professional Liability Insurance	Fixed	Carry the $850/month premium as recurring overhead.	Dropping insurance from break-even because it is not client-facing.
CRM and IT Infrastructure	Semi-fixed	Start with $1,200/month, then step it up if usage tiers or seats rise.	Modeling software as purely fixed while headcount scales.
Medical Record Retrieval Fees	Variable	Apply the first-year 6.0% rate against revenue, falling to 4.0% by the mature year.	Treating retrieval work like overhead instead of case-linked spend.
Secure Document Portal Usage	Variable	Apply the first-year 3.0% rate against revenue, falling to 1.0% by the mature year.	Ignoring per-client document activity in gross margin.
Referral Partner Commissions	Variable	Apply the first-year 10.0% rate against referred revenue, declining to 7.0% by the mature year.	Counting referred sales at full margin.
Veteran Outreach Events	Semi-fixed	Use the $2,000/month plan as a recurring program spend that can change in blocks.	Spreading event spend evenly per client as if it were commission.
Annual Marketing Budget	Semi-variable	Convert the $45,000 first-year budget into planned monthly demand spend, then scale with acquisition goals.	Using customer acquisition cost without checking whether the budget funds enough leads.

How does break-even shift across lean, base, and full service mixes for military disability rating assistance?

Scenario table

Break-even moves with service mix and staffing. Lean barely covers fixed costs, base reaches the Month 4 break-even signal, and full adds payroll but keeps profit above zero through higher revenue and stronger margin cover.

Planning assumptions only; service mix can overlap and actual results may differ.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean intake-light model	$47k	$10k	$37k	78%	$0k	Tight cost cover; a small drop in leads can push it below break-even.
Base Year 1 operating plan	$143k	$39k	$40k	73%	$64k	Month 4 is the break-even point, so Year 1 scale clears it.
Full Year 2 scaled plan	$291k	$76k	$57k	74%	$159k	Higher payroll still works because revenue growth gives the model a wider cushion.

What breaks the break-even plan if lead flow slows or case work takes longer?

Stress test

The base plan keeps about $676k of operating cushion, so it can absorb some noise. The main pressure points are weaker lead flow, CAC above $350, slower conversion, and extra review time; in the combined case, cushion falls to about $329k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,432k	$676k cushion	Healthy cushion, but timing still matters.
Revenue shortfall	Revenue falls 20% to $1,145k.	$1,145k	$452k cushion	Slower lead flow cuts room fast.
Fixed-cost pressure	Fixed overhead rises 15% to about $507k.	$1,432k	$609k cushion	Overhead can rise before revenue does.
Margin pressure	Variable expenses rise from 22% to 27%.	$1,432k	$605k cushion	CAC above $350 or slower conversion squeezes cushion.
Combined pressure	Revenue falls 20%, variable expenses rise to 27%, and fixed overhead rises 15%.	$1,145k	$329k cushion	This is the tightest case and needs tight spend control.

What should a founder verify before spending on ads, hiring, or office space for veteran disability rating help?

Founder checklist

Do not scale until the pricing, service time, lead cost, and cash need still work at break-even. If the math slips on any one of those, growth will just amplify the loss.

1Pricing floor$175-$250/hr

Verify each service clears the Year 1 hourly rate floor so delivery still funds growth.

2Service scope12/10/20/3 hrs

Verify the four offers really fit 12, 10, 20, and 3 billable hours, or margin will leak fast.

3Margin check~78% CM

Verify direct costs stay near 22% in Year 1, which leaves about 78% contribution margin before payroll and rent.

4Lead economics$350 CAC / $45K

Verify lead sources can hold CAC near $350 while using the $45,000 Year 1 marketing budget without breaking demand math.

5Capacity ramp4.5 hrs/customer

Verify each active customer only needs about 4.5 billable hours per month in Year 1, or staffing will bottleneck.

6Runway load$565K/mo / $817K

Verify monthly revenue can clear the $565K break-even run rate and that cash still covers the $817K low point in Month 2.