Real Estate Disposition Break-Even Analysis: $74K/Month

Fixed costs $16.7K/mo Monthly base

Contribution margin 67% After deal costs

Break-even revenue $24.9K/mo Revenue target

Break-even timing Month 25 Model crossover

Break-even calculator

Use this calculator to test how monthly revenue, variable expenses, and fixed costs shape break-even for a real estate disposition service.

Lean Base Full

Monthly revenue Revenue is the pool that covers variable costs first, then fixed costs. $ Low sales High sales Variable expenses These are the direct costs and commissions that rise with each deal. $ Low costs High costs

Money available to cover fixed costs $107,300 $128,500 revenue - $21,200 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin has to cover. $ Lean base Heavy base

Break-even chart Revenue Total costs

Which real estate disposition expenses are fixed, variable, semi-variable, or semi-fixed at break-even?

Cost classification

Break-even is only reliable if each expense follows the right driver. Treating deal-linked spend like rent, or rent like deal spend, can move the Month 25 break-even target in the wrong direction.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $8,500 per month across the relevant planning range.	Scaling rent with each closed property sale.
Technology and Software Subscriptions	Fixed	Use $2,200 per month until the platform or seat count changes.	Treating all software as usage-based.
Insurance and Legal Compliance	Fixed	Use $1,800 per month for baseline coverage and compliance support.	Modeling all legal work as deal-variable.
Professional Photography and Staging	Variable	Use 8.0% of revenue in the first year.	Budgeting listing prep as fixed overhead.
Third-Party Appraisal and Inspection Costs	Variable	Use 5.0% of revenue in the first year.	Forgetting that more deals need more third-party reports.
Sales Commissions to External Agents	Variable	Use 12.0% of revenue in the first year.	Leaving agent commissions out of contribution margin.
Marketing and Advertising Costs	Semi-variable	Separate the $75,000 first-year marketing budget from the 8.0% revenue-linked spend.	Treating all marketing as fixed or all variable.
Vehicle and Transportation	Semi-fixed	Use $1,200 per month, then step it up when property visit capacity changes.	Spreading transportation evenly across every sale.

How does break-even change from lean launch to base case to full operating scale?

Scenario table

Break-even climbs as payroll and marketing show up, and the mix shifts. Lean only covers core overhead; base adds Year 1 staffing; full adds Year 2 staffing and a larger marketing load, so the revenue target rises.

Planning cases only; actual break-even will move with deal mix, timing, and staffing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$249K	$82K	$167K	67%	$0	Excludes owner payroll, so it is not full-cost break-even.
Base case	$736K	$243K	$493K	67%	$0	This is the first full-cost check; profit starts above it.
Full operating scale	$996K	$299K	$697K	70%	$0	Higher staffing lifts the bar, so demand has to keep pace.

What breaks the break-even plan for this real estate disposition business?

Stress test

The plan sits near break-even at about $736,000 of revenue against $493,000 of fixed overhead and a 67% contribution margin. If closings slow, vendor spend rises, or fees slip, the cushion disappears fast and the breakeven date moves out.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$736,000	$0 cushion	At plan, there’s no cushion if deals slip.
Revenue shortfall	Revenue falls 20% to about $589,000.	$736,000	$99,000 gap	Slower closings leave the plan short on fixed costs.
Fixed-cost pressure	Fixed overhead rises 10% to about $542,000.	$809,000	$73,000 gap	A small overhead bump pushes break-even above plan.
Margin pressure	Variable expenses rise from 33% to 38%.	$795,000	$59,000 gap	Higher vendor spend and lower fee yield hurt margin.
Combined pressure	Revenue falls 20%, fixed overhead rises 10%, and margin drops to 62%.	$874,000	$285,000 gap	All three hits create a wide miss and demand faster closes.

Is your disposition pipeline ready before you lock in fixed costs and hires?

Founder checklist

With $16.7K in monthly fixed costs and year-1 direct costs at 33% of revenue, this model only works if pipeline, buyer reach, and pricing are real before you spend. Keep the $178K cash cushion intact so you can reach Month 25 break-even.

1Pipeline proofBefore lease

Confirm signed disposition work is already lined up before you commit to office space, because fixed costs hit every month before break-even.

2Buyer network12% fee

Prove buyer access before you take on external agent commissions at 12% of revenue, or the close may happen too slowly to cover the fee.

3Rate mix$75-$200/hr

Test each service line at its actual hourly rate, from $75 to $200, so you know which work can carry the year-1 33% direct-cost load.

4Fixed load$16.7K/mo

Watch the full monthly overhead closely, because that is the base expense the business must outrun before it reaches Month 25 break-even.

5Staff rampMonth 13+

Add the marketing manager, coordinator, and later analyst only when assignment volume can support the payroll jump, not when the org chart looks ready.

6Runway test$178K

Run the CRM and workflow pilot before the $25K setup spend, then delay the $45K vehicle and $18K photography buys until launch demand is clear; keep $178K cash through Month 25.