Nurse Call System Installation Break-Even: $95K Monthly Revenue Needed

Fixed costs $67.3K/mo Year 1 base

Contribution margin 71% After variable costs

Break-even revenue $94.8K/mo Monthly target

Break-even timing Month 5 Forecast break-even

Break-even calculator

Test how monthly installation revenue, variable delivery costs, and fixed overhead line up against break-even.

Lean Base Full

Monthly revenue Revenue has to cover variable costs before it can cover fixed overhead. $ Low rev High rev Variable expenses These are direct project costs that rise with each job and service month. $ Lower direct Higher direct

Money available to cover fixed costs $362,600 $490,000 revenue - $127,400 variable expenses

Margin ratio

74%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which nurse call system installation expenses stay fixed, and which move with project volume?

Cost classification

Break-even works only if each expense lands in the right bucket. For the first operating year, the fixed monthly planning base is about $67.3k, including payroll, listed fixed expenses, and marketing.

Expense	Cost	Break-Even Treatment	Common Mistake
Warehouse and office lease	Fixed	Use $6,500 per month in the fixed overhead base.	Spreading rent across jobs and hiding the true monthly hurdle.
Professional liability insurance	Fixed	Use $1,800 per month as required operating overhead.	Treating required coverage as optional until sales ramp.
Hardware and component procurement	Variable	Apply 14% of first-year revenue as a direct project expense.	Burying project materials in overhead, which overstates margin.
Subcontracted cabling labor	Variable	Apply 8% of first-year revenue when jobs are sold and installed.	Modeling subcontract labor as fixed payroll.
Project travel and logistics	Variable	Apply 4% of first-year revenue for site-driven travel and delivery activity.	Using one flat travel budget even when project count changes.
Certified lead technician staffing	Semi-variable	Keep base payroll in overhead, then flex utilization with installation volume.	Treating installer labor as fully fixed when project volume drops.
Project manager time	Semi-variable	Hold base salary in fixed overhead and scale project capacity as backlog grows.	Ignoring added coordination time on complex facility installations.
Fleet vehicle insurance and tracking	Semi-fixed	Use the current $1,200 per month block until another service vehicle block is needed.	Assuming fleet overhead rises smoothly with each job.

How does break-even shift across lean, base, and full installation schedules?

Scenario table

Break-even gets easier as revenue rises faster than overhead. Lean leaves only a thin cushion, base gives the first real buffer, and full has the strongest spread, though site size and cabling mix can still move the margin.

Planning assumptions only; actual margin will move with site size, install hours, and subcontract cabling mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean install schedule	$95.0k	$27.6k	$56.1k	71%	$11.4k	Barely above break-even, so a slow month can wipe out the cushion.
Base install schedule	$173.7k	$50.4k	$75.2k	71%	$48.1k	Healthy cushion; this is the normal-throughput plan that clears overhead.
Full rollout schedule	$348.0k	$95.7k	$89.1k	72.5%	$163.2k	Strong cushion; larger rollouts can absorb the higher payroll and marketing load.

What breaks the break-even plan if installs slip or costs run hot?

Stress test

The plan gets fragile if project starts slip, because payroll, lease, insurance, and software keep running every month. A 15% revenue drop still clears break-even, but a 10% overhead jump or a 34% variable-cost load cuts the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$94,789	$78,878 cushion	Comfortable on paper, but still cost-heavy.
Revenue shortfall	Monthly revenue falls 15%.	$94,789	$52,828 cushion	Still above break-even, but the cushion shrinks fast.
Fixed-cost pressure	Fixed monthly overhead rises 10%.	$104,268	$69,399 cushion	Payroll and lease pressure move the floor up.
Margin pressure	Variable expenses rise from 29% to 34% of revenue.	$101,970	$71,697 cushion	Direct job costs eat into the margin fast.
Combined pressure	Revenue drops 15%, fixed costs rise 10%, and variable expenses rise to 34%.	$112,167	$35,450 cushion	The cushion gets thin when delays and cost creep stack up.

Is the pipeline and crew setup strong enough before you sign the lease and hire the first installers?

Founder checklist

Before you lock in lease, payroll, and equipment, make sure the booked work can carry the model to Month 5 breakeven. The plan needs about $95K a month in signed or near-signed pipeline, a $604K cash cushion, and tight control of labor and subcontract costs.

1Pipeline$95K/mo

Confirm signed or near-signed facility work clears the $95K monthly break-even floor and can support the Year 1 average of about $174K a month; thin pipeline means bids can slip.

2Overhead$63.6K/mo

Include lease, fleet insurance, software, and compliance fees in the fixed load, because the business starts with about $63.6K a month before variable costs.

3Margin71% CM

Keep hardware at 14% and subcontract cabling near 8% of revenue; with travel at 4% and sales at 3%, the model keeps about 71% before fixed overhead.

4Install Load320 hrs

Verify each active installation can really absorb 320 billable hours at $125 an hour, because that is where the first-year revenue and crew load meet.

5Lead Techs2.0 FTE

Confirm the 2.0 FTE lead-tech base can cover installations before you layer on more fixed payroll, or overtime and rework will eat the margin.

6Cash Floor$604K

Hold at least the $604K minimum cash need through Month 5, and delay demo systems if the pipeline is thin so you do not run out of room before breakeven.