Radio Frequency Detection Service Break-Even: $82K Monthly Revenue

Fixed costs $56.4K/mo Monthly overhead base

Contribution margin 73% After variable spend

Break-even revenue $77.2K/mo Needed each month

Break-even timing Month 6 Model break-even point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a radio frequency detection service.

Lean Base Full

Monthly revenue Revenue sets how much contribution is available to cover fixed overhead. $ Low run rate Growth mode Variable expenses These are direct costs that rise with billable work, travel, and commissions. $ Light load Heavy load

Money available to cover fixed costs $281,906 $363,750 revenue - $81,844 variable expenses

Margin ratio

77%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the contribution margin has to absorb. $ Tight overhead Expanded team

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with sales for this field security service?

Cost classification

Break-even gets noisy when monthly overhead and per-job field spend are mixed. Treat fixed overhead as the hurdle, then subtract variable job spending from revenue to measure real contribution.

Expense	Cost	Break-Even Treatment	Common Mistake
Secure Office Rent	Fixed	Include the $6,500 monthly amount in fixed overhead from Month 1 through Month 60.	Spreading rent across jobs and hiding the true monthly hurdle.
Professional Liability and EO Insurance	Fixed	Include the $2,200 monthly premium in the base overhead needed before profit starts.	Reducing insurance when revenue dips, even though the policy remains monthly.
Technician Travel and Field Expenses	Variable	Apply as a percentage of revenue: 8.0% in the first year, declining to 6.0% by the fifth year.	Treating travel like rent instead of tying it to field jobs and customer visits.
Consumables and Lab Testing	Variable	Deduct from job revenue before contribution: 5.0% in the first year, declining to 3.0% by the fifth year.	Ignoring small test supplies because each item looks minor.
Referral and Partner Commissions	Variable	Model as revenue-linked selling expense: 10.0% in the first year, declining to 6.0% by the fifth year.	Counting referred revenue at full margin before commission payments.
Equipment Calibration and Maintenance	Semi-fixed	Budget monthly because equipment must stay service-ready, but expect steps as use and fleet size grow.	Loading the $410,000 equipment and vehicle purchases into monthly run-rate overhead.
Year 1 Technician Payroll	Fixed	Treat first-year salaries as fixed monthly overhead because staff are employed before every hour is fully booked.	Flexing payroll down with slow sales before staffing is actually variable.

How does break-even change across lean, base, and full operating cases for this RF detection service?

Scenario table

Break-even gets easier as utilization rises and fixed costs get spread across more billable work. The lean case sits close to the line, while the base and full cases show much wider cushions.

These are planning assumptions from the model, not guarantees. Actual results can move with mix, utilization, and timing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$1.174M	$317K	$601K	73%	$193K	Close to break-even, so small demand swings matter.
Base steady-pipeline case	$2.391M	$598K	$789K	75%	$894K	Clear cushion; steady corporate work supports the line.
Full high-utilization case	$6.268M	$1.128M	$1.180M	82%	$3.677M	Wide cushion; one-off sweeps, retainers, and event work scale well.

What breaks the break-even plan first for this RF detection service?

Stress test

The base case has room, but the cushion shrinks fast if booked work slips or overhead rises. The biggest pressure comes from fewer sweeps, wider travel, and higher calibration or insurance spend.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$824K	$350K cushion	Base case clears break-even with room to spare.
Revenue shortfall	Booked sweeps run 20% below plan.	$824K	$115K cushion	Fewer sweeps cut the cushion fast.
Fixed-cost increase	Fixed overhead rises 10%.	$906K	$268K cushion	Extra rent, insurance, or admin spend tightens the floor.
Variable-expense pressure	Variable expenses rise from 27% to 32%.	$884K	$290K cushion	More travel or calibration spend erodes margin.
Combined pressure	Revenue falls 20%, fixed overhead rises 10%, and variable expenses rise to 32%.	$962K	$23K gap	This is close to a loss; one more miss flips the month.

Is this radio frequency detection service ready to add overhead before break-even is truly proven?

Founder checklist

Check the billings, pricing, and staffing math before you lock in more fixed cost. The model reaches break-even by Month 6, but only if the $824K monthly billings target, the Year 1 price mix, and the $460K cash floor all hold.

1Billings$824K/mo

Do not add overhead until the pipeline can support about $824K in credible monthly billings, because that is the top-line level that makes the break-even plan believable.

2Pricing$350/$250/$400

Verify that realized pricing holds near $350 per corporate hour, $250 per residential and vehicle hour, and $400 per event or retainer hour, since small discounts hit contribution fast.

3Mix60/25/15

Pressure-test the 60% corporate, 25% residential and vehicle, and 15% event or retainer mix, because the model counts on corporate work doing most of the heavy lifting.

4CAC$45K / $1.2K

Keep Year 1 marketing at $45K and CAC near $1,200, or you will need more sales output than the current plan can fund before break-even.

5Utilization12.5 hrs

Keep the second senior technician off payroll until current utilization supports the next hire, and make sure travel still fits the 8% to 6% field-expense band as you widen coverage.

6Cash floor$460K / Month 6

Hold at least $460K of cash through Month 6, because fixed overhead is about $56.4K a month before variable costs, the $410K launch capex sits outside monthly break-even math, and the control workflows need to be stable before scale.