SASB Reporting Service Break-Even: $73K Monthly Revenue Target

Fixed costs $26.5K/mo Base monthly overhead

Contribution margin 75% After variable costs

Break-even revenue $35.4K/mo Monthly target

Break-even timing Month 22 Model break-even

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs interact for a sustainability reporting consulting business.

Lean Base Full

Monthly revenue Revenue is the pool that has to cover direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise with client work and sales. $ Lower costs Higher costs

Money available to cover fixed costs $116,740 $149,667 revenue - $32,927 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even has to cover. $ Lean overhead Full team

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in a sustainability reporting consulting firm?

Cost classification

Break-even is only useful if fixed overhead, staffing steps, and revenue-linked delivery costs sit in the right buckets. In the first year, fixed monthly overhead is $11,100 before payroll, so treating signed commitments as optional understates the target.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Lease	Fixed	Include $6,500 per month from Month 1 through Month 60.	Treating the lease as optional after signing.
Professional Liability Insurance	Fixed	Include $1,200 per month as launch overhead.	Ignoring required coverage in early break-even math.
Cloud IT and Cyber Security	Fixed	Include $850 per month within the normal planning range.	Tying the full spend only to client count.
Managing Director salary	Fixed	Include the $185,000 annual salary as recurring operating payroll.	Counting leadership labor as free.
Senior Consultant salary	Semi-fixed	Add $135,000 per full-time equivalent as delivery capacity steps up.	Hiring ahead of billable utilization.
ESG Data Platform Subscriptions	Variable	Model at 7.0% of revenue in the first year.	Assuming tools stay flat as client work grows.
External Verification Fees	Variable	Model at 5.0% of revenue in the first year.	Missing pass-through work or scope creep.
Sales Commissions	Variable	Model at 5.0% of revenue across the forecast.	Forgetting commission expense in gross margin.

How does break-even shift from a lean launch to a full client load?

Scenario table

Lean hiring keeps break-even out of reach at first. As the mix shifts toward retainer work, the contribution margin (CM) stays strong, but fixed payroll still decides when profit turns positive; annual averages hide onboarding lag and uneven project starts.

Planning assumptions only; onboarding lag and uneven project starts can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$45.4K	$11.4K	$51.1K	75%	-$324K	Still loss-making; fixed payroll outruns early revenue.
Base ramp	$96.4K	$22.7K	$66.3K	76.5%	-$102K	Near break-even; Month 22 is the turning point.
Full client load	$149.7K	$32.9K	$86.9K	78%	$63K	Past break-even; this case has a small cushion.

What breaks the break-even plan for this sustainability reporting service?

Stress test

The base case sits near $731K in monthly revenue against $549K of fixed costs, so the cushion is thin. Sales slips, discounting, contractor overages, or tools added before signed work push break-even higher fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$731K	$0 gap	No cushion means any miss matters.
Revenue shortfall	Monthly revenue falls 15% to $622K.	$731K	$109K gap	A sales delay leaves the model under water.
Fixed-cost pressure	Monthly overhead rises 10% to $603K.	$804K	$73K gap	Extra staff or tools lift break-even fast.
Margin pressure	Variable costs rise from 25% to 30%, cutting margin to 70%.	$784K	$53K gap	Discounts or contractor overages eat the cushion.
Combined pressure	Revenue falls to $622K, margin drops to 70%, and overhead rises to $603K.	$861K	$239K gap	Weak sales plus cost creep creates a deep loss.

What should you verify before you commit to the office, hiring, and vendor spend?

Founder checklist

Don't lock in the office, hires, or long vendor terms until signed work can cover the $51.1K monthly fixed load and the Month 22 break-even plan. The model still hits its cash low in Month 30, so the runway buffer has to be in place before you scale.

1Signed pipeline$545K Y1

Verify the sales funnel can support the Year 1 revenue plan and keep CAC near $4.5K per client, or Month 22 break-even slips.

2Fixed load$51.1K/mo

Confirm recurring signed work covers the monthly fixed load before you commit to a lease, permanent hires, or multi-month tools.

3Hourly rates$275/$250/$350

Hold these rates in live proposals, because the model assumes $275 for reporting, $250 for advisory, and $350 for workshops.

4Contribution75% CM

Check that 12% in data and verification costs plus 13% in travel and commissions still leaves about 75% contribution after delivery.

5Capacity ramp22.5 hrs

Map onboarding and staffing to 22.5 billable hours per active customer each month, or the consultant bench will hit a wall before break-even.

6Cash runway$275K

Keep at least $275K in cash through Month 30, because payback takes 55 months and the early years are still negative.