VA Claim Assistance Break-Even: About $486K Monthly Revenue

Fixed costs $5.7K/mo Base overhead

Contribution margin 58% After variable costs

Break-even revenue $9.7K/mo Needed each month

Break-even timing Month 3 Model hits break-even

Break-even calculator

Test monthly revenue against variable costs and fixed overhead to see where this model breaks even.

Lean Base Full

Monthly revenue Revenue is the cash base that must cover direct service costs and overhead. $ Early ramp Mature scale Variable expenses Direct costs rise with each claim, appeal, and consultation. $ Tight costs Higher costs

Money available to cover fixed costs $597,174 $787,917 revenue - $190,743 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin must absorb. $ Lean setup Heavy overhead

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in this disability claim assistance business?

Cost classification

Break-even works only if fixed overhead, case delivery spend, and acquisition spend sit in the right buckets. In the first year, small mistakes on 12% nexus fees, 8% referrals, or $45,000 marketing can move the break-even point.

Expense	Cost	Break-Even Treatment	Common Mistake
Administrative office rent	Fixed	Use $3,500 per month in fixed overhead for the monthly break-even base.	Spreading rent across claims and hiding the true monthly hurdle.
Professional liability insurance	Fixed	Use $650 per month as recurring overhead from Month 1 through Month 60.	Treating insurance as deal-driven when it does not rise with each case.
Enterprise legal research tools	Fixed	Use $450 per month as a stable operating subscription in the planning range.	Putting research tools into variable delivery expense by case.
Salaried claims, case, evidence, admin, and outreach roles	Semi-fixed	Model payroll in staffing steps because capacity rises when new full-time equivalents are added.	Assuming payroll scales smoothly with revenue instead of jumping with hires.
Independent medical examiner nexus fees	Variable	Use 12% of revenue in the first year as direct case delivery spend.	Parking examiner work in fixed overhead and overstating contribution margin.
Medical records retrieval and processing	Variable	Use 3% of revenue in the first year because records work follows case volume.	Treating records work as fixed overhead when more claims create more retrieval work.
Referral partner commissions	Variable	Use 8% of revenue in the first year as sales-linked acquisition expense.	Classifying commissions as fixed marketing and understating the revenue needed to break even.
Annual marketing budget tied to customer acquisition	Semi-variable	Model the $45,000 first-year budget with $150 customer acquisition cost to separate planned spend from lead-volume efficiency.	Using total marketing spend alone and missing whether acquisition gets cheaper or more expensive.

How does break-even change as a VA disability claim assistance firm moves from lean to base to full scale?

Scenario table

Break-even shifts as appeals work, consultations, and staffing grow. Revenue rises faster than overhead in every case, so the lean case has the tightest cushion and the full case has the widest.

Planning view only: these scenario figures are model-based assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean claims filing case	$243.8k	$65.8k	$35.5k	73%	$142.5k	Still above break-even, but this is the smallest cushion.
Base claims and appeals case	$513.6k	$131.5k	$46.2k	74.4%	$335.9k	This core case stays comfortably above break-even after staffing steps up.
Full claims, appeals, and consults case	$787.9k	$190.6k	$59.7k	75.8%	$537.6k	Higher revenue more than covers added overhead, so the cushion widens.

What pushes this VA disability claim assistance launch off break-even?

Stress test

The plan clears break-even on average, but Month 2 cash still peaks at $834,000, so early strain is the real risk. Revenue misses, a pulled-forward hire, or higher case-level fees can tighten the cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$43,470	$200,280 cushion	Base case stays profitable, but early cash still needs close watch.
Revenue shortfall	Year 1 average monthly revenue falls to $219,375.	$43,470	$175,905 cushion	A lower intake month cuts room fast, even before the break-even month.
Fixed-cost pressure	Move the Month 13 Outreach and Marketing Director salary into Month 1.	$52,032	$191,718 cushion	Each extra $1,000 of monthly overhead needs about $1,370 more revenue.
Margin pressure	Variable expenses rise from 27% to 28% of revenue.	$44,074	$199,676 cushion	Small fee creep raises break-even fast when case work and processing costs climb.
Combined pressure	Year 1 revenue falls to $219,375, the Month 13 outreach hire starts in Month 1, and variable expenses rise to 30%.	$54,262	$165,113 cushion	When revenue slips and costs rise together, Month 2 cash becomes the main threat.

What should the founder verify before adding fixed spend in this claims service?

Founder checklist

Before you add fixed monthly spend, make sure paid lead cost stays near $150 CAC, the mix holds near 45/30/25, and monthly burn lands near $35.5k. If CAC rises or the case load outruns staff, Month 3 break-even gets pushed back fast.

1CAC Check$150 CAC

Verify paid lead cost can stay near $150 before you scale, because the Month 3 break-even path depends on that acquisition math.

2Service Mix45/30/25

Keep the first-year mix near 45% initial claim packages, 30% appeals management, and 25% hourly consultations so revenue stays balanced as demand shifts.

3Fixed Load$35.5k/mo

Add Year 1 wages, fixed overhead, and the $45,000 marketing budget and confirm the monthly burn stays around $35.5k before you add more spend.

4Margin Mix73% CM

Keep combined variable costs at 27% of revenue or less, which leaves about 73% contribution margin to cover fixed spend.

5Case Capacity2.8 hrs/customer

Track active work at 2.8 billable hours per customer per month so the current team can absorb volume without forcing another hire.

6Cash Gate$834k

Protect the $834k minimum cash through Month 2, hold server, furniture, scanner, laptop, knowledge base, security, and portal spend to the planned $94.8k, and use Month 3 as the go/no-go line.