Supply Chain Consulting Break-Even Analysis: $71K Monthly Target

Fixed costs $47.6K/mo Payroll + overhead

Contribution margin 73% After direct costs

Break-even revenue $65.2K/mo Monthly target

Break-even timing Month 8 Modeled timing

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a supply chain consulting practice.

Lean Base Full

Monthly revenue Revenue sets the margin left after direct costs. $ Lower run rate Higher run rate Variable expenses Include commissions, travel, software, and data fees. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $76,000 $100,000 revenue - $24,000 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which consulting expenses are fixed and which move with sales?

Cost classification

Break-even gets cleaner when recurring overhead stays fixed and revenue-linked delivery spend stays variable. Here, Year 1 variable burden starts at 27% of revenue before payroll and overhead, so misclassifying one line can move Month 8 break-even.

Expense	Cost	Break-Even Treatment	Common Mistake
Lead Consultant / CEO payroll	Fixed	Include at $15,000 per month from Month 1.	Treating owner salary as profit instead of payroll.
Office Rent	Fixed	Include $5,000 per month through Month 60.	Ignoring lease drag before consultant utilization builds.
General Software Subscriptions	Fixed	Include $1,200 per month as overhead.	Mixing overhead tools with revenue-linked delivery software.
Business Insurance	Fixed	Include $600 per month in overhead.	Leaving insurance out of the monthly fixed base.
Software Licensing for Analytics Platforms	Variable	Model at 8% of Year 1 revenue.	Treating project delivery tools as fixed only.
Third-Party Data Access Fees	Variable	Model at 4% of Year 1 revenue.	Underpricing data-heavy consulting work.
Sales Commissions	Variable	Model at 10% of Year 1 revenue.	Forgetting the CAC and commission stack.
Annual Marketing Budget	Semi-fixed	Plan $50,000 in the first year, then step up with scale.	Committing spend before pipeline proof.

How does break-even change across lean, base, and full consulting setups?

Scenario table

Lean misses fixed overhead, base hits the line, and full creates cushion. The driver is contribution margin, which is what’s left after variable costs to pay the fixed team and office base.

Planning figures only; actual break-even can move with win rate, staffing speed, and project mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean founder-led validation	$568K	$153K	$518K	73%	-$103K	Still short of fixed overhead by about $103K.
Base break-even mix	$709K	$191K	$518K	73%	$0	Covers fixed costs, but leaves no cushion.
Full delivery mix	$1,136K	$307K	$518K	73%	$311K	Creates a solid cushion once delivery capacity is real.

What breaks this consulting plan’s break-even point?

Stress test

At $518K fixed costs and a 73% contribution margin, break-even is about $709K in annual revenue. A 10% sales miss, 10% overhead hike, or margin slip to 68% wipes out the cushion; combined pressure lifts break-even to about $838K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$709K	$0 cushion	No room for slippage.
Revenue shortfall	Client starts run 10% slower than plan.	$709K	$71K gap	Delayed starts turn into a real annual loss.
Fixed-cost pressure	Fixed overhead rises 10% to about $570K.	$781K	$71K gap	Higher overhead pushes break-even past the base plan.
Margin pressure	Variable expenses rise from 27% to 32%.	$762K	$52K gap	Travel overruns and software creep cut margin fast.
Combined pressure	Fixed overhead rises 10% and variable expenses rise to 32%.	$838K	$129K gap	Discounts, delays, and low utilization can break the plan.

What should you verify before locking in the first big payroll and office commitment for a supply chain management consulting firm?

Founder checklist

Do the math before you hire or lease. With a $47.6K monthly fixed load and a 73% contribution margin, break-even is about $65.2K per month, so the Year 1 EBITDA loss of $46K is expected and cash has to carry you through Month 7.

1Demand Proof$50K / $5K CAC

Verify the Year 1 marketing budget can turn into signed clients at about $5K customer acquisition cost, because break-even does not work on interest calls alone.

2Hourly Rates$200-$280/hr

Confirm buyers will pay the $250 logistics, $220 inventory, $200 oversight, and $280 technology rates, since the model only clears break-even if the price mix holds.

3Contribution73% CM

Keep contribution margin (what is left after variable costs) near 73% by holding software and data fees at 12% of revenue and sales commissions plus travel at 15%.

4Fixed Load$47.6K/mo

Do not lock in office rent or extra subscriptions until the $10.1K fixed overhead and $37.5K Year 1 wage base are covered, because that monthly load must be paid before profit shows up.

5Delivery Ramp3.5 FTE

Check that the Year 1 team at 3.5 FTE can handle the billable work before the junior consultant starts in Month 25, or payroll will outrun utilization.

6Cash Runway$725K

Hold at least the $725K minimum cash cushion through Month 7, because break-even lands in Month 8 and payback takes 22 months.