Offshore Wind Farm Feasibility Study Break-Even: $105K/Month

Fixed costs $75.5K/mo Monthly overhead base

Contribution margin 72% After variable spend

Break-even revenue $104.9K/mo Revenue needed monthly

Break-even timing Month 4 Model breakeven point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for an offshore wind farm feasibility study.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Low revenue High revenue Variable expenses These rise with project work and client delivery volume. $ Low costs High costs

Money available to cover fixed costs $152,083 $211,227 revenue - $59,144 variable expenses

Margin ratio

72%

Covers fixed costs

Yes

Fixed monthly costs This is the cost base margin must cover each month. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which offshore wind feasibility study expenses are fixed, variable, semi-variable, or semi-fixed?

Cost classification

Keep first-year fixed monthly costs at $75,500, including payroll, overhead, and marketing. Keep the $243,000 launch setup out of monthly break-even math, or the breakeven date will look worse than operations support.

Expense	Cost	Break-Even Treatment	Common Mistake
CEO / Lead Scientist payroll	Fixed	Use the $180,000 annual salary as $15,000 per month in the fixed base.	Allocating leadership time by project and understating monthly overhead.
Senior Wind Analyst payroll	Fixed	Use $10,000 per month in the first year, then step up as FTE rises.	Treating analyst payroll like subcontractor spend tied to each study.
Office Rent	Fixed	Include $8,000 per month regardless of study volume.	Dropping rent from break-even because delivery work is client-facing.
Premium Data Procurement	Variable	Model at 8% of revenue in the first year.	Booking data spend as a flat subscription and overstating contribution margin.
Project-Specific Software Licenses	Variable	Model at 5% of revenue in the first year.	Mixing project licenses with core platform tools.
External Project Consultants	Variable	Model at 10% of revenue in the first year.	Assuming consultant spend stays flat as study volume grows.
Travel & Client Engagement	Variable	Model at 5% of revenue in the first year unless scoped separately by project.	Treating every client trip as fixed overhead.
R&D Platform Licenses	Semi-fixed	Start with $1,800 per month, then add capacity only when the platform scales.	Confusing recurring licenses with the $243,000 launch setup.

How does break-even shift from lean staffing to full scale?

Scenario table

Break-even rises as the team scales because monthly revenue, fixed costs, and staffing all move up together. The base case is the pivot: it carries more overhead, but the higher margin keeps the cushion wider than the lean setup.

Planning view only; these figures are scenario assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean feasibility team	$228K	$64K	$76K	72%	$89K	Above break-even, but one slow project can thin the cushion.
Base multi-project delivery team	$718K	$158K	$116K	78%	$444K	Well above break-even, so fixed-cost coverage is more stable.
Full scaled advisory practice	$1.18M	$188K	$168K	84%	$821K	Far above break-even, with room for slower sales cycles.

What breaks the break-even plan for this offshore wind feasibility service?

Stress test

Year 1 revenue is about $229K/month against a $105K break-even, so the plan starts with a $124K cushion. The main risk is slower conversion plus more outsourced work, which can push break-even toward $200K to $233K/month.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$105K/month	$124K cushion	Year 1 revenue covers fixed costs with room to spare.
Revenue shortfall	Monthly revenue slips from about $229K to $105K.	$105K/month	$0 cushion	A slower close rate removes the full cushion.
Fixed-cost increase	Year 5 fixed costs rise to about $168K/month.	$200K/month	$29K cushion	Payroll and marketing absorb most of the headroom.
Margin pressure	The Year 1 variable load of 28% persists in the mature period.	$233K/month	$4K gap	Higher outsourced work pushes break-even above the plan.
Combined pressure	Year 5 overhead and Year 1 margin both hold while projects slip.	$233K/month	$4K gap	Delayed proposals can turn a thin cushion into a loss.

What should the founder verify before committing to payroll, rent, and setup spend?

Founder checklist

The model breaks even in Month 4, but cash bottoms in Month 5, so don’t commit until the pipeline and staff can carry the $105K monthly break-even. Demand, margin, and reserves all need to hold at once.

1Pipeline Proof$105K/mo

Validate signed proposals or late-stage work equal to the monthly break-even before you lock payroll and rent.

2Fixed Load$63.0K/mo

Check that office rent, overhead, and core salaries stay near $63.0K a month, and confirm the $1,500 insurance line covers professional liability.

3Margin Stack72% CM

Verify each study still clears about 72% contribution margin after premium data, software, consultants, and travel, or fixed costs will bite fast.

4Delivery Capacity4.5 FTE

Staff to billable hours, not headcount; the Year 1 team is 4.5 FTE, so verify it can absorb the study load.

5Cash Cushion$776K

Keep cash close to the modeled $776K low point in Month 5, because the $243K launch setup and early hires hit before revenue steadies.

6CAC Gate$15K CAC

Test buyer discovery against the $15K acquisition cost before you spend the $150K Year 1 marketing budget, or the pipeline may not refill fast enough.