Monthly Break-Even Calculator
Created by Joseph Puckett ConsultingCalculate staffing costs, marketing spend, and break-even requirements
Total Commissions Forecasted
$13,220
Renewals:$3,500
New Business:$9,720
Expenses Before Commissions Paid To Producers
$19,971
Payroll + Marketing + Loans + Operating
Total Expenses After Commissions Paid
$26,451
Expenses before commissions:$19,971
Commissions paid to producers:$4,860
Manager override:$1,620
Net P/L Forecasted
-$13,231
Loss vs break-even
Total Break-Even Items
228
Items needed (incl. commissions & override)
Total Break-Even Premium
$410,400
Premium needed (incl. commissions & override)
Operating Expenses
Payroll$9,804
Marketing$3,500
Loan Payment$4,167
Operating$2,500
Total Expenses$19,971
Commission Rates
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Break-Even Calculation
Items Needed (before producer commissions)76
Average Producer Commission Rate6%
Commissions Paid$8,208
Production Needed To Pay For Commissions$68,400
Extra Items Needed To Pay For Commissions38
Manager Override Rate2%
Manager Override Paid (on break-even premium)$8,208
Production Needed To Pay For Manager Override$22,877
Extra Items Needed To Pay For Manager Override13
TOTAL ITEM PRODUCTION REQUIRED228
TOTAL PREMIUM REQUIRED TO BREAK-EVEN$410,400
Enter Forecasted Monthly Production
$81,000
45 items x $1,800 avg premium
Loss Based On Forecasted Production
Average Items Per Person on Payroll:15
Items Written45
Written Premium
$81,000(23.14x spend)
New Commissions Earned$9,720
Renewal Commissions Earned$3,500
Salary / Benefits / Operating Expenses-$19,971
Commissions Paid to Producers-$4,860
Manager Override (2%)-$1,620
NET LOSS:-$13,231
Payroll Configuration
| # | Role | Name | Annual Salary | Expected Items | Expected Premium | Commission % | Commission Expense | Total Comp Expenses | Income to Agency | P/L Before Marketing | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | % | -$2,160 | $8,043 | $4,320 | -$3,723 | |||||||
| 2 | % | - | $3,922 | - | -$3,922 | |||||||
| 3 | % | - | - | - | - | |||||||
| TOTAL | $100,000 | 20 | $36,000 | -$2,160 | $11,964 | $4,320 | -$7,644 |
Payroll Cost Summary
Base Salary (Monthly)$8,333
Payroll Tax (7.65%)$638
Benefits (10.00%)$833
Total Payroll Cost$9,804
Production-Based Staff Analysis
Total Expected Items20
Est. Total Premium$36,000
Commission to Agency (12%)$4,320
Producer Commission Payout-$2,160
Manager Override (2%)-$720
Net Commission to Agency$1,440
Less: Total Payroll Cost-$9,804
Staff Deficit-$8,364
Marketing Vendors
| Vendor | Monthly Spend | 4x Premium | 4x Items | 5x Premium | 5x Items | ||
|---|---|---|---|---|---|---|---|
| $8,000 | 4 | $10,000 | 6 | ||||
| $6,000 | 3 | $7,500 | 4 | ||||
| $0 | 0 | $0 | 0 |
Marketing Summary
Total Spend$3,500
4x Return
Premium$14,000
Items8
5x Return
Premium$17,500
Items10
Close Rate
Daily Leads Needed2