Accessible Bathroom Design Break-Even: About $376K Monthly Revenue

Fixed costs $5.7K/mo Core overhead only

Contribution margin 76% After variable costs

Break-even revenue $7.4K/mo Monthly sales target

Break-even timing Month 5 Launch breakeven

Break-even calculator

Test whether monthly revenue covers direct costs and fixed overhead for an accessible bathroom design service.

Lean Base Full

Monthly revenue Revenue sets the pool that must cover direct and fixed costs. $ Lower sales Higher sales Variable expenses Direct project costs rise with each job, like travel, referrals, and subcontracted work. $ Lower direct costs Higher direct costs

Money available to cover fixed costs $50,983 $67,083 revenue - $16,100 variable expenses

Margin ratio

76%

Covers fixed costs

Yes

Fixed monthly costs Studio rent, software, insurance, admin, and payroll make up the monthly base. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which accessible bathroom design expenses are fixed, and which move with sales?

Cost classification

Break-even is only useful if fixed overhead stays fixed and revenue-linked expenses flex with jobs. Treat rent and software as overhead, payroll as capacity steps, and OT, drafting, travel, and referral fees as job-linked expenses.

Expense	Cost	Break-Even Treatment	Common Mistake
Design Studio Rent	Fixed	Include the $3,200 monthly rent in fixed overhead for the planning range.	Spreading rent by project and understating the monthly revenue floor.
CAD and Project Management Software	Fixed	Include the $450 monthly software subscription in fixed overhead.	Treating core design tools as optional job expenses.
Principal Designer payroll	Semi-fixed	Model salary as a capacity block that stays stable until staffing changes.	Assuming payroll rises smoothly with each new client.
Junior Accessibility Designer payroll	Semi-fixed	Step payroll up when headcount expands from 1.0 FTE to higher staffing levels.	Ignoring staffing step-ups and overstating margin at growth points.
External OT Consultation Fees	Variable	Apply as a revenue-linked project expense, starting at 8.5% in the first year.	Putting consultation fees in overhead instead of tying them to project revenue.
Drafting and Rendering Subcontractors	Variable	Apply as a revenue-linked expense, starting at 6.0% in the first year.	Classifying subcontract drafting as fixed overhead.
Project Site Travel and Logistics	Variable	Apply as a job-linked expense, starting at 4.5% in the first year.	Treating travel as overhead instead of a project-volume expense.
Lead Referral Commissions	Variable	Apply as a sales-linked expense, starting at 5.0% in the first year.	Leaving referral fees below the line and overstating contribution margin.

How does break-even change as this accessible bathroom studio moves from lean to full scale?

Scenario table

Break-even rises as the studio adds staff and overhead, but the margin also improves from 76.0% to 80.0%. The lean case clears break-even sooner; the full case has the biggest cushion if referral flow stays strong.

These are planning assumptions, not guarantees; actual results will move with project mix, staffing load, and referral flow.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean staffed studio	$671K	$161K	$286K	76.0%	$224K	Break-even sits near $376K, so this case has early cushion.
Base expanded admin studio	$1.42M	$330K	$332K	76.8%	$761K	Break-even is about $432K, so steady referrals and admin support matter.
Full-scale operating studio	$3.97M	$795K	$527K	80.0%	$2.65M	Break-even is about $659K, with the best cushion if capacity stays full.

What breaks the break-even plan for ADA-compliant bathroom design?

Stress test

The plan clears break-even, but it’s most exposed to slower signed projects, higher overhead, and creeping travel or referral costs. Base break-even is $376K, so the cushion only stays healthy if starts, pricing, and site-visit counts stay tight.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$376K	$295K cushion	There is room, but delay risk is real.
Revenue shortfall	Signed projects fall 15% at a $4,561 average fee.	$376K	$194K cushion	Delayed starts and CAC above $850 can bite first.
Fixed-cost pressure	Rent, payroll, insurance, accounting, and marketing rise 10%.	$415K	$256K cushion	Lease or staffing creep hits break-even fast.
Margin pressure	Travel, contractor coordination, and referral commissions lift variable expenses from 24% to 29%.	$403K	$268K cushion	More site visits can push margin down.
Combined pressure	Signed projects fall 10% while fixed costs rise 10% and variable expenses move to 29%.	$443K	$161K cushion	Discounting plus slower starts cuts slack hard.

Before you sign the studio lease, what should you verify first?

Founder checklist

Don’t sign the studio lease, hire up, or buy the vehicle until you’ve proved 9 average projects a month, a $4,561 weighted fee, and enough cash to absorb the $831K minimum in Month 2. The model reaches break-even by Month 5, but only if demand and capacity show up on time.

1Project volume9 projects/mo

Verify you can close at least 9 average projects a month at a $4,561 weighted fee before committing to the lease, because that sales pace makes break-even believable.

2Payroll load$250K base

Check that the $250K first-year salary base plus the $5,650 monthly overhead still works before you sign the studio lease.

3Margin mix76% CM

Hold subcontractor, travel, and referral costs near Year 1 levels so the weighted mix still leaves about 76% contribution margin.

4Capacity ramp$38K vehicle

Confirm contractor and occupational therapy (OT) consultation coverage before selling full bathroom renovation packages, and map site visits before buying the $38K vehicle.

5Cash buffer$831K

Delay extra equipment if Month 2 cash pressure would push the plan below the $831K minimum cash need.

6Referral CAC$850 CAC

Secure referral partners first, then scale marketing only after proposals convert steadily enough that the $850 CAC still supports break-even by Month 5.