Active Release Technique Therapy Break-Even: $338K Monthly Revenue

Fixed costs $27.2K Monthly base cost

Contribution margin 80.5% After direct costs

Break-even revenue $33.8K Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue against direct costs and fixed overhead for an Active Release Technique therapy clinic.

Lean Base Full

Monthly revenue Cash collected each month before direct treatment costs. $ Low sales High sales Variable expenses Direct costs tied to each treatment month, like consumables, fees, and lead spend. $ Light costs Heavy costs

Money available to cover fixed costs $80,413 $98,667 revenue - $18,253 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs Monthly overhead the clinic must cover even when visits stay flat. $ Low fixed High fixed

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with therapy sales?

Cost classification

Break-even is only useful if fixed overhead stays separate from expenses that rise with treatment revenue. Misclassifying percent-of-revenue items as overhead can make Month 1 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Rent	Fixed	Include $6,500 per month in base overhead for the relevant planning range.	Spreading rent per treatment and hiding the true monthly nut.
Utilities and High Speed Internet	Fixed	Use $850 per month as fixed overhead unless rooms or clinic hours expand.	Letting small usage swings distort treatment-level margin.
Professional Liability Insurance	Fixed	Include $450 per month in monthly overhead before calculating treatment break-even.	Treating insurance as optional because it is not tied to each visit.
Clinical Consumables and Linens	Variable	Apply 3.5% of revenue in the first year, then 3.0% from the third year onward.	Using a flat supply budget when volume changes.
Technique License and Royalty Fees	Variable	Apply 5.0% of revenue in the first two years, then step down per the model.	Putting royalties in overhead instead of treatment-linked margin.
Digital Marketing and Lead Acquisition	Variable	Apply 8.0% of first-year revenue, falling to 5.5% by the fifth year.	Assuming ads are fixed while bookings still depend on paid leads.
Credit Card and Booking Fees	Variable	Apply 3.0% of revenue to each paid treatment or booking.	Forgetting payment fees when setting price and margin targets.
Front Desk Coordinator Staffing	Semi-fixed	Model step changes from 1.0 FTE in the first year to 2.5 FTE by the fifth year.	Adding support payroll too smoothly instead of in staffing steps.

How does break-even change across lean, base, and full clinic schedules?

Scenario table

Break-even shifts with staffing mix because revenue, variable cost, and fixed payroll move together. The base case clears monthly overhead; the lean case needs lower fixed costs, while the full case adds cushion only if hiring and utilization hold.

These are planning assumptions, not guarantees, so actual results can move with demand, staffing, and payer mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean ART lead only	$15.8k	$3.1k	$27.2k	80.5%	-$14.5k	Too thin at planned overhead; lower fixed load first.
Base Year 1 team mix	$52.5k	$10.2k	$27.2k	80.5%	$15.1k	Clears break-even and leaves a useful monthly cushion.
Full Year 2 team mix	$98.6k	$18.2k	$37.4k	81.5%	$43.0k	Strong cushion, but hiring and utilization must keep up.

What can break the break-even plan for an Active Release Technique therapy clinic?

Stress test

The base plan clears break-even, but the cushion shrinks fast if visits slip or fixed costs rise. A 25% revenue drop almost wipes out the buffer, and a $5,000 overhead bump pushes the clinic close to monthly loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; revenue holds at $52,510 and variable expenses stay at 19.5%.	$33,781	$15,079 cushion	Base case clears break-even, but the cushion is not huge.
Revenue shortfall	Monthly revenue drops 10% to $47,259.	$33,781	$10,851 cushion	Lower visit volume trims the room to absorb no-shows.
Fixed-cost pressure	Fixed overhead rises by $5,000 a month.	$39,991	$10,079 cushion	Rent or staffing creep pushes the break-even line up fast.
Margin pressure	Variable expenses rise 3 points to 22.5%, cutting margin to 77.5%.	$35,086	$13,503 cushion	Discounts, fees, or waste shave profit per visit.
Combined pressure	Revenue drops 25% and fixed overhead rises by $5,000.	$39,991	$488 gap	A small miss turns the month negative.

Can this therapy practice cover break-even overhead before you sign the lease or add rooms?

Founder checklist

Only move ahead if booked sessions, pricing, and cash clear the modeled break-even point. In Year 1, the clinic needs at least 289 monthly sessions at a blended visit price near $117 while carrying the full $27,192 monthly fixed load.

1Demand proof289/mo

Verify you can book at least 289 monthly sessions against the 449-session Year 1 plan, because that is the minimum volume that supports the modeled overhead.

2Visit price$117 avg

Check that the blended visit price stays near $117 before discounts, or every session has to do more work to cover the same fixed load.

3Fixed load$27.2K/mo

Confirm the practice can absorb the full $27,192 monthly fixed load of rent, payroll, software, and admin before you lock the lease or add rooms.

4Contribution81% CM

Make sure session-level contribution stays around 81% after 8.5% COGS and 11% variable costs, because break-even depends on margin more than top-line revenue.

5Capacity ramp297 sessions

Test whether the Senior ART Lead can sustain 105 monthly sessions and certified practitioners 192 combined, and delay extra rooms if utilization falls short.

6Cash cushion$861K M2

Keep startup cash separate from operating break-even, since capex totals $105.5K and minimum cash still bottoms at $861K in Month 2, so don’t scale marketing faster than demand.