Roadside Assistance Break-Even Analysis: $144K Monthly Revenue

Fixed costs $18.0K/mo Base overhead

Contribution margin 70% After variable costs

Break-even revenue $25.7K/mo Monthly revenue target

Break-even timing Month 10 Model break-even point

Break-even calculator

Compare monthly revenue, variable expenses, and fixed costs to see when roadside assistance covers overhead.

Lean Base Full

Monthly revenue Revenue is the money coming in each month before direct costs and overhead. $ Low sales High sales Variable expenses These are direct costs that rise as service volume and customer acquisition increase. $ Low direct High direct

Money available to cover fixed costs $102,200 $146,000 revenue - $43,800 variable expenses

Margin ratio

70%

Covers fixed costs

Yes

Fixed monthly costs These costs stay in place each month and must be covered by contribution margin. $ Lower base Higher base

Break-even chart Revenue Total costs

Which roadside assistance expenses are fixed and which move with sales?

Cost classification

Break-even in Month 10 only holds if fixed overhead, step-up staffing, and revenue-linked service costs are separated cleanly. Misclassifying one large line can make the break-even point look earlier than cash flow supports.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $7,500 per month, or $90,000 in the first year, across the planning range.	Tying rent to customer count when the lease is stable.
App Maintenance & Base Hosting	Fixed	Use $4,000 per month, or $48,000 in the first year, before usage-based platform fees.	Mixing base hosting with scaling technology fees.
Year 1 Payroll	Semi-fixed	Use $995,000 in the first year, about $82,917 per month, then step it up as headcount rises.	Modeling payroll as a smooth percent of revenue.
Annual Marketing Budget	Semi-fixed	Treat the $1,200,000 first-year budget as committed capacity if spend is locked before revenue lands.	Counting the full budget as purely variable CAC spend.
Service Fulfillment Payments	Variable	Apply 15.0% of revenue in the first year, falling to 12.0% by the mature year.	Burying unmodeled fuel, towing partner, or maintenance spend here.
Payment Processing Fees	Variable	Apply 2.5% of revenue in the first year, falling to 2.0% by the mature year.	Treating card fees as fixed platform overhead.
Scaling Technology & API Licensing	Variable	Apply 3.0% of revenue in the first year, falling to 2.0% by the mature year.	Putting all technology spend into fixed hosting.
Customer Support	Semi-variable	Pair fixed support staffing with variable support at 1.5% of revenue in the first year.	Ignoring ticket volume after adding support headcount.

How does break-even move from lean validation to a base staffed launch and a full scaled roadside assistance model?

Scenario table

Lean keeps overhead low for demand testing, but base staffing pushes the break-even bar much higher. Full scale adds payroll and support again, so you need a lot more monthly revenue before the model turns safely profitable.

Planning assumptions only, not a promise; actual break-even will move with claim mix, staffing, and marketing efficiency.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$257K	$77K	$180K	70.0%	$0	Best for pre-payroll validation only.
Base staffed launch	$1,442K	$433K	$1,009K	70.0%	$0	Best fit for Year 1 launch planning.
Full scaled model	$3,136K	$768K	$2,368K	75.5%	$0	If marketing stays fixed, Year 1 break-even is nearer $2.87M per month.

What breaks the break-even plan for this roadside assistance business?

Stress test

At the base case, the plan is right on break-even at about $1.44M a month. A $100K revenue miss or a 1-point margin slip pushes it back into a gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.44M	$0 gap	Base case clears break-even, but there is no cushion.
Revenue shortfall	Monthly revenue falls by $100K from base.	$1.44M	$100K gap	A small sales miss drops the plan below break-even.
Fixed-cost increase	Fixed costs rise by $100K per month.	$1.58M	$143K gap	Each $100K of extra fixed cost lifts break-even fast.
Margin pressure	Variable expenses rise 1 point to 31.0%.	$1.46M	$21K gap	One point of margin loss adds about $21K to break-even.
Combined pressure	Fixed costs add about $1.0M a month and variable expenses rise to 31.0%.	$2.91M	$1.47M gap	Locked-in marketing plus weaker margin pushes the model far above the base case.

What should a roadside assistance founder verify before committing to office rent and payroll?

Founder checklist

Before you lock in rent, payroll, and launch spend, test whether service demand, partner coverage, and CAC can carry the fixed load. The model breaks even in Month 10, but cash bottoms out in Month 16 at -$375K, so the runway has to survive the ramp.

1Service Radius$18K/mo

Verify the local call volume can support the $18K monthly fixed load, including $7.5K rent, before you sign the lease.

2Coverage Mix15.0%

Confirm partner coverage can hold service fulfillment near 15% of revenue in Year 1, or the margin math will slip fast.

3Payroll Load$82.9K/mo

Check that staffing can carry the Year 1 payroll load of $82.9K a month before you add more routes or hours.

4CAC Test$1.2M / $35

Make sure the funnel can absorb the Year 1 marketing budget at a $35 CAC, because that is what fills the pipeline.

5Support Load3-18 FTE

Verify support can handle 24/7 response as headcount grows from 3 to 18 full-time equivalent roles, or wait times will hurt retention.

6Runway Buffer$455K / Month 16

Fund the $455K one-time capex separately and keep cash alive past Month 10, since minimum cash hits Month 16 at -$375K.