Search
Cart 0 / $0.00

Angiography Suite Break-Even Analysis: Month 22 Target


You’re planning a medical construction firm that designs and installs cardiac catheterization labs, so break-even depends on billable project volume, hourly pricing, payroll, subcontractor spend, equipment procurement, and fixed overhead This model uses a first-year revenue base of $874,000, fixed overhead of about $34,000 per month before payroll and marketing, and a modeled break-even point in Month 22 It excludes tax, legal, financing, and clinical reimbursement advice


Fixed costs $34.0K/mo Monthly overhead base
Contribution margin 68.7% After variable costs
Break-even revenue $49.5K/mo Monthly target sales
Break-even timing Month 22 Cash turns positive

Break-even calculator

Test monthly project revenue against direct project costs and fixed overhead to see when the lab design business gets past break-even.

Money available to cover fixed costs $116,834 $166,667 revenue - $49,833 variable expenses
Margin ratio
70%
Covers fixed costs
Yes
Break-even chart Revenue Total costs
Plan Break-even $0 $0

Which angiography suite design expenses stay fixed, and which move with project sales?

Cost classification

Break-even is only useful if fixed overhead and project-driven expenses are split cleanly. Here, Month 22 break-even depends on not treating materials, procurement, and project bonding like rent.

Expense Cost Break-Even Treatment Common Mistake
Office Rent and Utilities Fixed Carry $12,000 per month in base overhead before any project margin covers profit. Spreading rent across billable hours and hiding losses when volume is light.
Professional Liability Insurance Fixed Include $8,500 per month as recurring overhead for the full operating period. Treating it as project-only insurance instead of a standing monthly burden.
Subcontractor and Material Costs Variable Model as 18.0% of first year revenue, improving to 16.0% by the mature year. Treating project-driven materials as fixed overhead and overstating contribution margin.
Equipment Procurement Costs Variable Model as 8.0% of first year revenue, declining to 6.5% by the mature year. Leaving procurement below gross margin and making each project look too profitable.
Business Development and Sales Variable Apply 3.5% of first year revenue, then step down as deal flow becomes more efficient. Counting sales spend only as fixed marketing and missing deal-level selling drag.
Project-Specific Insurance and Bonding Variable Apply 1.8% of first year revenue because coverage rises with signed project work. Using one flat annual amount and underpricing larger construction contracts.
Design Architect Staffing Semi-variable Add capacity after launch: 0.0 FTE in the first year and 1.0 FTE in the second year at $85,000 annual salary. Treating salaried delivery staff as fully variable by billable hour.
Professional Development and Training Semi-fixed Plan the $2,000 monthly base, then review step-ups as project load and certifications rise. Freezing training forever even as compliance and delivery complexity increase.

How does break-even shift across lean, base, and full cath lab project schedules?

Scenario table

Lean keeps fixed payroll ahead of revenue, so losses stay wide. Base follows the plan and reaches break-even in Month 22, while full utilization lifts the margin and builds a clear cushion by Year 3.

Planning figures only; actual project mix, staffing, and client timing can move break-even.
Scenario Monthly Revenue Variable Costs Fixed Costs CM Ratio Operating Profit Break-Even Signal
Lean cath lab launch $60.0k $18.8k $98.8k 68.7% -$57.6k Slower revenue keeps losses in place while payroll stays fixed.
Base plan $72.8k $22.8k $98.8k 68.7% -$48.8k Follows the plan and reaches break-even in Month 22.
Full schedule $682.7k $178.2k $240.2k 73.9% $264.2k Higher utilization turns EBITDA positive by Year 3 and adds cushion by Year 5.

What breaks the break-even plan for an angiography suite design firm?

Stress test

The plan is thin. Year 1 already shows a $585,000 EBITDA loss, so a revenue miss, a higher fixed-cost base, or a small margin slip can push break-even beyond Month 22 and make the Month 28 cash trough worse.

Stress Case Changed Assumption Break-Even Revenue Revenue Gap Risk Signal
Current plan No change. $1,609,000 $735,000 gap Break-even lands in Month 22, but cash still bottoms at -$310,000 in Month 28.
Revenue shortfall Year 1 revenue comes in 10% below the $874,000 plan. $1,609,000 $823,000 gap A 10% miss widens the gap fast and leaves less room to absorb project delay.
Fixed-cost pressure Monthly fixed overhead rises 10% above the $92,125 base. $1,770,000 $896,000 gap Higher payroll and overhead raise the hurdle right away.
Margin pressure Variable expenses rise 3 points, from 31.3% to 34.3% of revenue. $1,683,000 $809,000 gap A small margin slip adds about $73,000 to annual break-even revenue.
Combined pressure Revenue is 10% below plan, fixed overhead is 10% higher, and variable load is 3 points higher. $1,851,000 $1,064,000 gap When revenue dips and costs rise together, the break-even gap moves past $1.0 million.

What should the founder verify before signing the lease and hiring into this cath lab build business?

Founder checklist

Don’t sign the lease or lock headcount until the signed pipeline, margin stack, and cash curve still support Month 22 break-even. The model turns positive in Month 22, but cash bottoms near negative $310K in Month 28, so the setup has to work before costs lock in.

1Pipeline proof$874K / $2.0M

Verify signed work can support Year 1 revenue of $874K and Year 2 revenue of $2.0M, while CAC stays near $45K in Year 1 and $40K in Year 2.

2Fixed load$34.0K/mo

Keep the office, insurance, software, legal, communications, supplies, training, and admin base near $34.0K a month, or the lease will eat break-even room fast.

3Margin stack68.7% CM

Lock subcontractor, material, and equipment quotes before you sign build costs, because Year 1 direct and variable costs total 31.3% of revenue and leave a 68.7% contribution margin.

4Payroll ramp$43.1K/mo

Do not add the Month 13 architect and construction manager until backlog can carry about $43.1K a month in Year 1 payroll for the base team.

5Cash trough-$310K

Plan reserve cash for the Month 28 trough, because the model dips to about negative $310K before Month 22 break-even and 47-month payback can catch up.

6Launch mix180/120/40 hrs

Check the first-year mix really lands at 45% new cath lab construction, 40% renovations, and 15% consultation, with 180 hours at $285, 120 at $250, and 40 at $225.