Real Estate Break-Even Analysis: $38K Monthly Revenue Target

Break-Even Metric Cards

Fixed costs $27.2K Monthly base load

Contribution margin 78% After variable costs

Break-even revenue $34.9K Revenue needed monthly

Break-even timing Month 6 Model break-even point

Break-Even Calculator

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a real estate feasibility study service.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Low demand High demand Variable expenses Use direct delivery costs that rise with each project. $ Tight delivery Heavy delivery

Money available to cover fixed costs $41,810 $53,600 revenue - $11,790 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin must cover. $ Lean team Scaled team

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or semi-variable in a real estate feasibility study business?

Cost classification

Break-even in Month 6 only holds if recurring overhead and revenue-linked expenses stay separate. Treating 10% data subscriptions or 5% specialist reports as fixed overhead will overstate margin coverage.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Lease	Fixed	Include $5,000/month in fixed overhead for the full planning range.	Spreading rent across projects and making margin look too high.
Utilities & Internet	Semi-variable	Start with the $800/month base, then separate any usage-driven overages if they appear.	Classifying the full amount as purely variable with client volume.
Accounting & Legal Retainer	Fixed	Include $1,500/month in fixed overhead before calculating required contribution.	Leaving recurring professional fees below the break-even line.
Premium Data & Software Subscriptions	Variable	Deduct 10% of first-year revenue from gross revenue before contribution margin.	Treating revenue-linked data access like stable office overhead.
Third-Party Specialist Reports	Variable	Deduct 5% of revenue as project delivery expense tied to client work.	Treating project-linked reports like overhead instead of job-level expense.
Project-Specific Travel & Site Visits	Variable	Deduct 4% of revenue because site visits rise with active client projects.	Budgeting travel as a flat monthly allowance despite project volume changes.
Client Entertainment & Relationship Building	Variable	Deduct 3% of revenue before testing whether margin covers fixed overhead.	Ignoring relationship spend when pricing larger advisory engagements.
Staffed Analyst and Consultant Payroll	Fixed	Include staffed roles as fixed payroll unless hiring is delayed or headcount changes.	Assuming salary falls when study volume drops for one month.

How does break-even change from the lean year 1 case to the full year 3 case?

Scenario table

As the firm adds staff and raises hourly rates, fixed cost and revenue both climb, so break-even moves up from about $381K in the lean case to about $529K in the base case and about $641K in the full case.

Planning assumptions only; actual break-even shifts with client mix, utilization, and project size.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean year 1 case	$605K	$133K	$297K	78%	$175K	Revenue sits above break-even, but the cushion is still thin.
Base year 2 case	$1.57M	$307K	$426K	80.5%	$840K	Break-even is higher, yet the margin cushion is clearly stronger.
Full year 3 case	$2.86M	$486K	$532K	83%	$1.84M	Higher rates and volume keep break-even manageable at scale.

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

Stress test

Base break-even is about $381K/month, so the cushion is thin. A 10% revenue miss, fixed costs 10% higher, or variable costs rising from 22% to 27% can each create a gap; the combined hit is the first real break.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$381K/month	$0 gap	No cushion for early slips.
Revenue shortfall	Revenue comes in 10% below plan.	$381K/month	$30K gap	Slow client conversion can wipe out the month.
Fixed-cost increase	Fixed costs rise 10%.	$419K/month	$38K gap	Payroll and lease growth can outrun signed work.
Margin pressure	Variable expenses move from 22% to 27% of revenue.	$407K/month	$26K gap	Report costs above 5% push break-even up fast.
Combined pressure	Revenue is 10% lower, fixed costs are up 10%, and variable expenses stay at 27%.	$458K/month	$77K gap	A weak pipeline plus cost creep creates the first real loss risk.

What should you verify before signing the office lease for this feasibility study service?

Founder checklist

Don't sign the lease or add staff until you have enough signed or near-signed work to cover the $381K monthly break-even target. The real test is whether your pipeline, pricing, and billable hours can hold Month 6 break-even without draining the $828K cash cushion in Month 2.

1Signed Pipeline$381K/mo

Confirm the sales pipeline can close enough work to support the monthly break-even target, and keep the $30K Year 1 marketing budget aligned with the $2,500 CAC you’re assuming.

2Fixed Load$27.2K/mo

Add the $5,000 lease to the Year 1 salary base before you commit, because the office plus payroll create fixed spend you must cover every month.

3Margin Mix78% CM

Approve third-party specialist reports only when the billable scope still supports the 5% assumption, because the Year 1 cost stack leaves about 78% contribution margin before overhead.

4Capacity Check60/15/30 hrs

Verify each engagement fits the modeled 60 foundational hours, 15 advisory hours, or 30 custom-analysis hours, so delivery quality holds when volume picks up.

5Cash Cushion$828K

Keep the minimum cash reserve intact through Month 2, because that is the tightest point before break-even evidence shows up.

6Hire RampMonth 13

Delay the junior analyst and marketing hire until the Month 13 volume case is supported, and avoid permanent spend before Month 6 break-even evidence.