Senior Relocation Service Break-Even: $34K Monthly Revenue

Fixed costs $12.2K/mo Core monthly base

Contribution margin 72%-78% After variable costs

Break-even revenue $17.0K/mo Monthly target

Break-even timing Month 7 7-month ramp

Break-even calculator

Test whether monthly revenue covers variable expenses and the fixed cost base for a senior relocation service.

Lean Base Full

Monthly revenue Revenue is the top line that creates room for fixed costs and profit. $ Low demand Stronger demand Variable expenses These are direct costs that rise with each move, like supplies, vendors, fuel, and ads. $ Tighter costs Higher costs

Money available to cover fixed costs $36,500 $50,000 revenue - $13,500 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the service has to cover before profit. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which senior relocation expenses are fixed, and which move with sales?

Cost classification

Classify costs by behavior, or break-even will look too easy. In the first year, fixed overhead starts at $4,300/month before payroll, while supplies, vendors, fuel, and performance ads move with job volume.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $2,500/month from Month 1 through Month 60.	Treating rent as lower when sales dip.
Liability Insurance	Fixed	Include $300/month as base operating overhead.	Leaving insurance out of monthly break-even.
Packing Supplies	Variable	Apply 8.0% of revenue in the first year, declining to 6.0% by Year 5.	Modeling materials as office supplies.
Direct Third-Party Vendor Costs	Variable	Apply 12.0% of revenue in the first year, declining to 10.0% by Year 5.	Counting vendor charges as pass-through only.
Vehicle Fuel & Maintenance	Variable	Apply 5.0% of revenue in the first year, declining to 4.0% by Year 5.	Using a flat monthly fuel budget.
Digital Ad Spend (Performance-based)	Variable	Apply 3.0% of revenue in the first year, declining to 2.0% by Year 5.	Mixing performance ads with fixed brand spend.
Move Manager Payroll	Semi-fixed	Step payroll from 1.0 FTE in Year 1 to 3.0 FTE by Year 4.	Adding labor smoothly instead of in hires.
Annual Marketing Budget	Semi-variable	Model planned spend rising from $15,000 in Year 1 to $75,000 in Year 5.	Treating all marketing as CAC-only spend.

How does break-even change from a lean launch to a base plan and a full-service setup?

Scenario table

Lean cuts overhead, so break-even lands on a smaller monthly revenue base. Base adds more staff and fixed costs, and full-service raises both revenue and the cost base, even with a better contribution margin.

Planning assumptions only: these scenario figures show modeled break-even paths, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$28.9K	$8.1K	$20.8K	72%	$0	Lowest overhead, so cash pressure is lighter if bookings stay steady.
Base case	$34.3K	$9.6K	$24.7K	72%	$0	Modeled founder-stage path; break-even sits around Month 7.
Full-service model	$80.9K	$17.8K	$63.1K	78%	$0	Higher margin helps, but the larger payroll needs steadier volume.

What breaks the break-even plan if bookings soften or costs rise?

Stress test

The base plan clears break-even at about $343,000 in monthly revenue, but the cushion is thin. A 10% booking dip or a small rise in fixed or subcontractor costs can turn steady EBITDA into a $25,000 to $65,000 monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$343,000	$0 cushion	Break-even is exactly met, so there is no room for slippage.
Revenue shortfall	Monthly revenue falls 10% from plan.	$343,000	$25,000 gap	Fewer move bookings push cash below break-even.
Fixed cost pressure	Fixed costs rise 10% across office, staff, and overhead.	$378,000	$35,000 gap	Added overhead needs more revenue just to hold steady.
Margin pressure	Variable expense pressure lifts costs from 28% to 33% of revenue.	$369,000	$26,000 gap	Higher subcontractor quotes and travel time squeeze contribution.
Combined pressure	Revenue runs 10% below plan while costs stay under pressure.	$408,000	$65,000 gap	Watch for fewer bookings, higher CAC, and more travel time.

What should the founder verify before committing to office space, vans, and hires?

Founder checklist

Test the referral flow, pricing, and cash burn before you lock in fixed costs. This model only reaches break-even if Year 1 demand holds, variable costs stay close to plan, and the Month 2 cash trough does not force a reset.

1Referral flow16 moves/mo

Verify your referral pipeline can support about 16 moves a month, and keep the service area tight so fuel and travel do not eat the margin.

2Rate card$75/$70/$90

Verify clients will pay the Year 1 hourly rates for organizing and packing, unpacking and setup, and move supervision, because lower pricing cuts cash per job fast.

3Fixed burn$23.5K/mo

Keep monthly fixed overhead near $23.5K from rent, insurance, software, utilities, supplies, the retainer, and vehicle insurance, or break-even will slide out.

4Cost mix72% CM

Hold Year 1 variable expenses near 28% of revenue so contribution margin (CM, revenue left after variable costs) stays around 72% with packing supplies at 8%, vendor costs at 12%, fuel at 5%, and ad spend at 3%.

5Staff ramp4.5 FTE

Check whether the founder, 1 move manager, 2 packing staff, and 0.5 marketing FTE can cover the booking pace before you add the Month 13 admin hire or the Month 25 operations manager.

6Cash gate$811K / $300 CAC

Make sure you can absorb the Month 2 cash trough of $811K and keep the $300 customer acquisition cost inside the $15K Year 1 marketing budget, with third-party vendors lined up before launch.