Private Investigator Break-Even Analysis: $275K/Month Target

Fixed costs $18.8K Base monthly load

Contribution margin 76% After variable costs

Break-even revenue $24.7K Monthly target

Break-even timing Month 5 Model payback point

Break-even calculator

Test whether monthly revenue covers direct case costs and the fixed overhead base.

Lean Base Full

Monthly revenue Revenue must cover direct case costs before anything is left for overhead. $ Slow start Scale up Variable expenses These costs move with case volume, like travel, data access, and outside experts. $ Tight costs Heavy travel

Money available to cover fixed costs $153,353 $191,700 revenue - $38,347 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the business must cover each month. $ Lean team Big team

Break-even chart Revenue Total costs

Which private investigator expenses are fixed, variable, semi-variable, or semi-fixed for break-even?

Cost classification

Break-even is only useful if stable overhead stays fixed and job-linked spend reduces contribution margin. Keep the $105,000 one-time capex out of monthly operating break-even, or Month 5 will look harder than the model says.

Expense	Cost	Break-Even Treatment	Common Mistake
Office rent	Fixed	Use $2,500 per month in fixed overhead before calculating required case revenue.	Treating rent as case-driven when it does not move with monthly caseload.
Utilities and internet	Fixed	Use $500 per month as fixed overhead within the normal planning range.	Spreading it across jobs and overstating variable expense per investigation.
Data access fees	Variable	Deduct 5.0% of revenue in the first year when calculating contribution margin.	Putting database fees in overhead and overstating margin on each case.
Investigator travel and field expenses	Variable	Deduct 8.0% of revenue in the first year because field work rises with caseload.	Using a flat monthly travel number and missing margin pressure from active cases.
Subcontracted expert services	Variable	Deduct 7.0% of revenue in the first year for outside specialist work tied to cases.	Hiring experts before the case need exists and turning variable spend into overhead.
Marketing budget tied to lead volume	Semi-variable	Model the first-year budget at $25,000, then test lead volume using the $500 CAC.	Counting the whole budget as fixed while ignoring acquisition cost per new client.
Senior investigator	Semi-fixed	Add $90,000 per year only when the staffing plan steps up from zero to one FTE.	Adding the salary too early and lowering break-even before capacity is needed.
Technical specialist	Semi-fixed	Add $85,000 per year when technical case volume supports a dedicated FTE.	Treating the role as variable labor even though it arrives in a staffing step.

How does break-even change across lean, base, and full private investigator setups?

Scenario table

Break-even rises as staffing and marketing get heavier. The lean launch has the lightest monthly load, while the full agency model needs the most revenue just to hold even.

Planning assumptions only. Real break-even will move with case mix and utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean solo launch	$27,478	$6,595	$20,883	76%	$0	Lowest overhead, so launch risk stays contained.
Base staffed buildout	$53,188	$10,638	$42,550	80%	$0	Balanced mix, but it needs steady referral flow.
Full agency model	$78,403	$12,937	$65,466	83.5%	$0	Highest overhead, so idle capacity raises cash risk fast.

What pushes a private investigator below break-even?

Stress test

The plan breaks first on weak utilization and slow collections, because fixed overhead is already $20,883 a month and contribution margin is 76%. A small revenue miss, higher field costs, or more subcontractor-heavy cases can turn a break-even month into a loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in the current cost mix.	$27,478	$0 gap	No cushion if collections slip.
Revenue shortfall	Monthly revenue lands $1,000 below break-even.	$27,478	$1,000 gap	A small miss creates about a $760 contribution gap.
Fixed-cost pressure	Monthly overhead rises by $1,000.	$28,794	$1,316 gap	Rent, insurance, or admin creep lifts the bar fast.
Margin pressure	Variable expenses rise 1 point to 25%.	$27,845	$367 gap	More travel or subcontracting cuts margin quickly.
Combined pressure	Revenue falls $1,000, overhead rises $1,000, and variable expenses rise 1 point.	$29,177	$1,699 gap	Lower retention and higher field costs can flip the month negative.

Can you prove the case pipeline before you lock in fixed investigator overhead?

Founder checklist

Don’t lock in fixed rent, hires, or equipment until the pipeline can support Month 5 break-even. This model also needs the Month 2 cash trough covered at about $862K, so the first test is whether demand and billing can fund the base load.

1License stackBefore launch

Verify the active license and required insurance are in place before selling any case, because one missing control can stop revenue before break-even starts.

2Pipeline proof$2.5K rent

Test referral flow before signing $2,500 monthly office rent, because empty space turns a fixed cost into a cash drag.

3Direct margin76% CM

Price retainers so revenue covers the 5.0% data access fee, 4.0% software, 8.0% travel, and 7.0% subcontractors, since those direct costs set the cash left for overhead.

4Staff ramp$7.5K/mo

Delay the Senior Investigator until workload can fund the $7,500 monthly salary, and confirm the owner still has enough billable hours before adding the $45,000 admin role.

5Cash trough$862K

Hold enough cash for the Month 2 trough, because the model's minimum cash need is $862K and capex lands early.

6CAC control$500 CAC

Track CAC against the Year 1 $500 assumption and require deposits on private client work before scaling marketing from $25,000 to $40,000.