Mobile Device Forensics Break-Even Analysis: About $98K/Month

Fixed costs $19.0K/mo Base monthly overhead

Contribution margin 73% After variable costs

Break-even revenue $26.0K/mo Monthly target sales

Break-even timing Month 5 Profit starts here

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a mobile device forensics service.

Lean Base Full

Monthly revenue Revenue sets the margin that covers fixed cost. $ Slow month Busy month Variable expenses These are direct costs that rise as cases rise. $ Lean costs Higher costs

Money available to cover fixed costs $103,000 $152,000 revenue - $49,000 variable expenses

Margin ratio

68%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover. $ Tight overhead Larger team

Break-even chart Revenue Total costs

Which mobile device forensics expenses are fixed, and which move with case volume?

Cost classification

Break-even is reliable only when lab overhead stays separate from revenue-linked case costs. Here, fixed monthly overhead is $19,000 before payroll, while first-year variable case costs run 27% of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Secure Lab and Office Rent	Fixed	Model at $12,000 per month from Month 1 through Month 60.	Treating rent as case-driven when it stays due even in slow months.
Professional Liability & EO Insurance	Fixed	Model at $1,800 per month as baseline operating overhead.	Scaling insurance with revenue instead of keeping it in fixed overhead.
Marketing & Web Maintenance	Fixed	Model at $2,500 per month for the monthly break-even floor.	Mixing this recurring spend with the separate annual acquisition budget.
Forensic Software Licensing	Variable	Apply 12% of first-year revenue, falling to 8% by the mature year.	Booking it as a flat subscription and overstating gross margin at low volume.
Evidence Storage & Chain of Custody Supplies	Variable	Apply 4% of first-year revenue, declining to 2% by the mature year.	Leaving supplies out of contribution margin because each item feels small.
Travel & Field Investigation Costs	Variable	Apply 6% of first-year revenue, declining to 4% by the mature year.	Averaging field work into payroll and hiding case-level profitability.
Referral Commissions	Variable	Apply 5% of revenue across all forecast years.	Counting referred revenue but forgetting the commission tied to each sale.
Examiner Payroll	Semi-fixed	Add in hiring steps as capacity expands, especially senior examiner and technician roles.	Modeling payroll as a smooth percentage instead of a capacity step.

How does break-even shift from a lean launch setup to a base plan and a fuller operating build for a mobile device forensics service?

Scenario table

Higher revenue and a stronger contribution margin give more room to cover payroll, lab, and overhead. The lean case stays tight, the base case reaches break-even by Month 5, and the full case creates the widest cushion.

Planning assumptions only; actual results can move with case mix, staffing, and demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch setup	$91k-$107k	$25k-$29k	$66k-$78k	73%	$0-$5k	Near break-even; one weak month can flip profit to loss.
Base launch plan	$1.52m	$0.41m	$717k	73%	$392k	Break-even by Month 5, with a workable monthly cushion.
Full operating build	$7.96m	$1.51m	$1.79m	81%	$4.66m	Strong cushion; mature utilization can absorb heavier staffing.

What breaks the break-even plan for a mobile device forensics service?

Stress test

At the base case, the plan has room. But it gets tight fast if intake slips or costs creep up: Year 1 variable expenses already run at 27%, and a move to 32% or an extra $10K a month in overhead pushes break-even up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$982K	$537K cushion	Base demand stays above break-even.
Revenue shortfall	Monthly revenue slips by $537K.	$982K	$0 gap	The full cushion is gone.
Fixed-cost increase	Add $10K per month in overhead.	$1,119K	$400K cushion	Extra payroll or lab spend tightens the model.
Margin pressure	Variable expenses rise from 27% to 32%.	$1,054K	$465K cushion	More storage, travel, or software use pushes the bar higher.
Combined pressure	Revenue slips by $537K, overhead adds $10K per month, and variable expenses rise to 32%.	$1,191K	$209K gap	A small intake miss turns into a real loss risk.

What should you verify before you sign the lab lease and hire examiners?

Founder checklist

If you’re about to sign the lease and hire, first prove that attorney and corporate demand can support about $98K in monthly intake. Then check pricing, workflow, and cash runway so you don’t lock in fixed costs before the model can carry them.

1Demand Proof$98K/mo

Confirm recurring attorney and corporate case flow can reach about $98K a month before you commit to fixed space.

2Pricing Check$250/$450/$300

Test Year 1 quotes at $250 extraction, $450 testimony, and $300 consultation so pricing holds break-even.

3Fixed Load$19.0K/mo

Add up rent, insurance, security, utilities, admin, and web upkeep first, because that $19.0K lands every month.

4Margin Check73% CM

With software, storage, travel, and referral costs at about 27%, your contribution margin is roughly 73% if pricing holds.

5Capacity FitYear 1 scope

Keep the launch build to Year 1 scope and delay extra examiner hiring until utilization can support payroll.

6Cash Runway$561K

Hold the Month 6 cash floor of $561K before adding more fixed assets, since payback takes 14 months.