Tech Support for Seniors Break-Even Plan: Month 34 Target

Fixed costs $6.5K/mo Monthly base load

Contribution margin 62% Left after variable

Break-even revenue $10.5K/mo Revenue to cover

Break-even timing Month 34 Forecast crossover

Break-even calculator

Test whether monthly revenue clears variable costs first, then the fixed cost base.

Lean Base Full

Monthly revenue Revenue pays variable costs first, then fixed overhead. $ Slow month Busy month Variable expenses These are the direct costs that rise with each service month. $ Light costs Heavy costs

Money available to cover fixed costs $18,600 $30,000 revenue - $11,400 variable expenses

Margin ratio

62%

Covers fixed costs

$11,400 short

Fixed monthly costs This is the monthly overhead the business must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which senior tech support expenses are fixed, and which move with sales?

Cost classification

Break-even gets reliable only when fixed overhead stays separate from revenue-linked spend. In the first year, every extra 1% of revenue misclassified can move the break-even point by real cash.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Use $2,500 per month in fixed overhead.	Spreading rent across sessions and making margins look worse.
Business Insurance	Fixed	Use $800 per month as recurring overhead.	Treating insurance as tied to each support visit.
CRM and Scheduling Software	Fixed	Use $400 per month unless the plan changes.	Linking the full tool fee to revenue growth.
Transportation and Mileage Costs	Variable	Model at 12% of first-year revenue.	Forgetting travel rises with in-home service volume.
Software Licensing and Remote Support Tools	Variable	Model at 8% of first-year revenue.	Putting all software into fixed overhead.
Marketing and Advertising Campaigns	Variable	Model at 15% of first-year revenue.	Using only the annual budget and ignoring CAC pressure.
Utilities and Communications	Semi-variable	Start with the $600 monthly base, then add usage as calls rise.	Assuming phone and communication usage never scales.
Tech Concierge Staffing	Semi-fixed	Treat salaried coverage as fixed until added FTE capacity is hired.	Burying technician payroll inside variable expense.

How does break-even shift as this tech support service moves from a lean launch to full coverage?

Scenario table

The break-even line moves with mix and utilization. Hourly work starts at $75, packages at $65, subscriptions at $55, and workshops at $45 in Year 1, so more repeat clients and denser travel routes lower risk and widen cushion.

Planning assumptions only; real results will move with client mix, travel time, and staffing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$40.2k	$15.3k	$24.9k	62%	$0	Small volume misses push this under break-even fast.
Base scale mix	$63.0k	$19.2k	$43.8k	69.5%	$0	This is the hinge case; it matches the model's Month 34 break-even point.
Full coverage mix	$79.3k	$19.0k	$60.3k	76%	$0	This gives the widest cushion, but travel and staffing still cap margin.

What breaks the break-even plan if bookings soften or costs rise?

Stress test

Year 1 needs about $483k in monthly revenue to cover a $299k fixed base at a 62% contribution margin. A 10% booking drop, higher travel costs, or a 5-point margin slip can turn a thin plan into a real monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$483k/month	$0 cushion	Baseline clears fixed overhead only at plan.
Revenue shortfall	Monthly revenue falls 10% to about $434k.	$483k/month	$30k gap	Fewer repeat sessions leave the plan under water.
Fixed-cost pressure	Fixed overhead rises 10% to about $329k a month.	$531k/month	$48k gap	Hiring and overhead push the hurdle up fast.
Margin pressure	Variable expense rises from 38% to 43%, cutting contribution margin to 57%.	$525k/month	$42k gap	Higher mileage or paid marketing eats service margin.
Combined pressure	Revenue falls 10% and variable expense rises to 43%.	$525k/month	$82k gap	Soft bookings and cost creep widen the monthly hole.

Will seniors pay enough for the first tech support mix before you add more staff, tools, and marketing?

Founder checklist

Don’t commit to heavier coverage until the early mix, cash need, and customer pull line up with the break-even model. If those numbers miss, Month 34 break-even slips fast.

1Demand Proof$75/hr

Verify seniors will buy the $75 hourly help plus lower package and subscription rates before you widen the service radius.

2Contribution Margin62% CM

Check that Year 1 pricing still leaves about 62% after 8% software, 12% mileage, 15% marketing, and 3% print, because that margin must fund payroll and overhead.

3Fixed Load$30K/mo

Confirm payroll plus rent, insurance, tools, vehicles, and admin stay near this load, or the break-even date will move out and cash burn will climb.

4Capacity Ramp2.5 hrs/customer

Use remote support first, map computers, smartphones, tablets, printers, and routers, and verify the team can handle about 2.5 billable hours per active customer in Year 1 before you add more visits.

5Cash Cushion$130K

Hold at least the modeled $130K cash need, and keep startup capex separate from operating losses, or you can run short before Month 34 break-even.

6CAC Guardrail$120 CAC

Track customer acquisition cost against the $120 Year 1 assumption and make sure repeat-client demand is real before you scale marketing, or new revenue will arrive too slowly.