Senior Companion Service Break-Even Analysis: $90k Monthly Revenue

Fixed costs $4.9K/mo Fixed base

Contribution margin 83.5% After variable costs

Break-even revenue $5.8K/mo Monthly target

Break-even timing Month 6 Model break-even

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even.

Lean Base Full

Monthly revenue Revenue sets the margin left after direct costs and fixed overhead. $ Low sales High sales Variable expenses Direct costs that rise with revenue, like ads, commissions, and service tools. $ Low direct costs High direct costs

Money available to cover fixed costs $93,000 $111,000 revenue - $18,000 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the margin must cover before profit starts. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even is only useful if each expense sits in the right bucket. Put stable overhead, step-up staffing, and revenue-linked fees in separate lines so Month 6 break-even doesn’t look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $2,500 per month from Month 1 through Month 60.	Spreading rent by client and hiding the fixed burn.
General Liability Insurance	Fixed	Use $500 per month as recurring monthly overhead.	Treating insurance like a per-visit fee.
CRM & Accounting Software	Fixed	Use $400 per month unless the plan changes with scale.	Putting the full platform stack into variable expense.
CEO and admin wages	Semi-fixed	Model salary in staffing steps as headcount and capacity rise.	Assuming leadership and admin payroll flexes with each booking.
Companions payroll	Semi-fixed	Use staffing blocks; first year companions are 9 FTE, or $30,000 per month.	Modeling all companion labor as perfectly variable by visit.
Payment Processing Fees	Variable	Apply the revenue-linked rate, starting at 2.5% in the first year.	Leaving fees out when package sales increase.
Marketing & Digital Ad Spend	Variable	Apply the sales-linked rate, starting at 8.0% in the first year.	Using only the annual budget and missing revenue sensitivity.
Mileage reimbursement	Variable	Add as a user input tied to visits or travel miles.	Forgetting travel pay because no source amount is provided.

How does break-even change from lean launch to base growth and full capacity?

Scenario table

As booked hours and recurring visits rise, revenue grows faster than the fixed care-team load, so break-even gets safer. The main risk is staffing drift: if companion hours spread too thin, variable costs can eat the cushion.

Planning cases only; actual results will move with booked hours, staffing, and client mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$1.23M	$203k	$751k	84%	$278k	Positive, but the cushion is still narrow.
Base growth	$8.41M	$1.08M	$2.20M	87%	$5.13M	Healthy buffer if recurring visits stay dense.
Full capacity	$26.6M	$2.77M	$4.84M	90%	$19.0M	Strong cushion, but route density still matters.

What breaks the break-even plan when visits get canceled or costs creep up?

Stress test

Base break-even sits near $899k a month on $751k of fixed costs and an 83.5% contribution margin. Canceled visits, long routes, caregiver overtime, insurance hikes, and slow family referrals are the main pressure points.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue or costs.	$899k	$0 gap	Base case has little room for misses.
Revenue shortfall	Monthly revenue is 10% lower.	$899k	$75k gap	Slow family referrals can open a fast cash hole.
Fixed-cost pressure	Fixed costs rise by $5k a month.	$959k	$60k gap	Insurance, rent, and admin overhead lift the sales floor.
Margin pressure	Variable expense load rises from 165% to 195%.	$932k	$33k gap	Long routes and overtime eat into contribution.
Combined pressure	Revenue drops 10%, variable expenses rise to 195%, and fixed costs reach $801k a month.	$995k	$149k loss	That mix creates a large monthly cash drain.

Can you prove this companion service will cover screening, staffing, and overhead before you commit to the first big spend?

Founder checklist

Yes, but only if you can fund the Month 6 cash trough, keep fixed overhead lean, and hold service quality steady. The model reaches break-even in Month 6, so the first commitment should be a demand, staffing, and cash test.

1Launch Demand$120K

Confirm the Year 1 marketing budget can fill the schedule at 18 billable hours per active customer, and lock the non-medical service terms before the first visit.

2Screening Load1.5% rev

Verify background checks and vetting stay near 1.5% of Year 1 revenue, because screening has to protect quality without eating margin.

3Fixed Overhead$4.85K/mo

Check whether office rent is truly needed, because rent, insurance, customer tracking, utilities, legal, hosting, and supplies already run $4,850 a month before wages.

4Unit Margin83.5% CM

Make sure total Year 1 variable costs stay at 16.5% of revenue, which leaves an 83.5% contribution margin to pay payroll and overhead.

5Ops Ramp9 FTE

Test scheduling, cancellation rules, and service radius before scale, because Year 1 assumes 9 companion FTE and 18 billable hours per active customer.

6Cash Trough$734K

Keep the reserve plan ready for the Month 6 cash low of $734,000, because there is no inventory tie-up here and the model does not reach break-even until Month 6.