Savings Bank Break-Even Analysis: $157K Monthly Revenue Target

Fixed costs $66.5K/mo Before payroll

Contribution margin 62% After variable costs

Break-even revenue $226K/mo Zero-profit point

Break-even timing Month 16 Forecast crossover

Break-even calculator

Test how monthly revenue, variable expenses, and fixed monthly costs line up with break-even for this savings bank model.

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and fixed overhead. $ Low revenue High revenue Variable expenses These are direct costs that rise with revenue, like marketing and processing fees. $ Light variable Heavy variable

Money available to cover fixed costs $198,833 $220,436 revenue - $21,603 variable expenses

Margin ratio

90%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with revenue or deposit balances?

Cost classification

This model reaches break-even in Month 16, so weak cost labels can move the target fast. Keep fixed monthly overhead separate from balance-linked interest and revenue-linked fees.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Carry $10,000 per month from Month 1 through Month 60 in fixed overhead.	Scaling rent with deposit balances instead of capacity.
Core Banking Software Licenses	Fixed	Include $25,000 per month as a platform operating charge in break-even overhead.	Treating licenses as per-account fees without a usage assumption.
Data Center Cloud Hosting	Fixed	Use the modeled $12,000 per month as fixed infrastructure within the planning range.	Adding unmodeled usage tiers to make break-even look flexible.
Savings Deposits Interest	Variable	Apply the 1.5% first-year rate to savings deposit balances, which start at $20,000,000.	Treating deposit interest like office rent instead of linking it to balances and rates.
Certificates of Deposit Interest	Variable	Model interest against certificate balances at 3.0% in the first year, not as a flat charge.	Holding interest expense flat while balances rise from $10,000,000 to $130,000,000.
Marketing & Customer Acquisition	Variable	Calculate as 8.0% of revenue in the first year, declining to 4.5% by the fifth year.	Booking marketing as a fixed monthly campaign spend.
Payment Processing Fees	Variable	Apply 3.0% of revenue in the first year, falling to 2.0% in the fifth year.	Leaving processing fees out of contribution margin.
Payroll	Semi-fixed	Step staffing from $875,000 annual wages in the first year to $1,580,000 in the fifth year.	Making every role fully variable or fully flat.

How does break-even change across lean, base, and full savings bank scenarios?

Scenario table

Launch is tight because full staff and compliance costs hit before deposits and loans scale. By Year 2, net interest income clears break-even, and Year 5 shows a much wider cushion as the balance sheet grows.

Planning assumptions only; actual results will move with deposit mix, funding costs, and credit losses.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Year 1 launch case	$157k	$17k	$139k	89%	-$85k	Still below break-even; runway stays tight.
Year 2 post-break-even case	$377k	$37k	$162k	90%	$37k	Past break-even, but margin control still matters.
Year 5 mature case	$4.31M	$280k	$198k	94%	$2.60M	Strong cushion; scale supports overhead and growth.

What breaks first in this savings bank break-even plan?

Stress test

The cushion is tiny: break-even is about $1.57M a month, and Year 1 net interest income is only about $1.57M. A small rate miss or the Year 2 overhead step-up pushes the bank into a monthly gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.57M/month	$1k cushion	The base case leaves almost no room for miss.
Revenue shortfall	Year 1 net interest income slips to about $1.53M/month.	$1.57M/month	$33k gap	A small yield miss turns the month negative.
Fixed-cost increase	Planned fixed monthly costs rise to about $1.62M in Year 2 as staffing expands.	$1.82M/month	$252k gap	Overhead becomes the main break-even drag.
Margin pressure	Year 2 deposit rates are applied to Year 1 deposit balances.	$1.57M/month	$33k gap	Spread compression eats the tiny cushion.
Combined pressure	Year 2 deposit repricing and Year 2 fixed costs hit together.	$1.82M/month	$290k gap	This is the fastest path to a cash burn gap.

What should you verify before locking this savings bank's fixed costs?

Founder checklist

Verify you can fund the $1.024M Year 1 EBITDA loss and still hold the $50.325M minimum cash floor. If any fixed commitment lands before Month 16 break-even, the balance sheet will feel it fast.

1Cash floor$50.3M

Check that opening cash covers the Month 1 trough and the Year 1 loss before you sign anything fixed.

2Office lease$10K/mo

Verify the rent can sit inside the Year 1 loss period, because this fixed cost starts on day one and does not wait for break-even.

3Hiring load$875K

Confirm Year 1 wages fit before Month 16 break-even, since the launch team already runs at a large fixed cost base.

4Tech stack$43K/mo + $200K

Make sure the core banking license, cloud, cybersecurity, and implementation spend can be funded without pushing operating break-even higher.

5Deposit rates1.5% / 3.0% / 2.0%

Verify the savings, CD, and money market rates still leave room for the 8% marketing and 3% processing load, or the 89% contribution margin shrinks fast.

6Ramp check$30M / $45M

Keep the $80K ATM buy and $100K digital build outside operating break-even, and confirm first-year loans and deposits can still ramp to $30M and $45M before launch.