Assistive Technology Assessment Break-Even: $457K/Month

Fixed costs $37.4K/mo Core monthly base

Contribution margin 82% After variable costs

Break-even revenue $45.7K/mo Revenue needed

Break-even timing Month 25 First break-even

Break-even calculator

Use this to test whether monthly revenue can cover variable expenses and fixed monthly costs.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Soft month Busy month Variable expenses These are direct costs that rise with each assessment. $ Low direct High direct

Money available to cover fixed costs $79,427 $94,667 revenue - $15,240 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your margin has to cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which assistive technology assessment expenses are fixed, and which move with sales?

Cost classification

Break-even is only reliable when each expense follows the right driver. Treat fixed overhead as monthly load, variable items as revenue-linked, and capacity adds as step changes.

Expense	Cost	Break-Even Treatment	Common Mistake
Headquarters Rent	Fixed	Use $4,500 per month from Month 1 through Month 60, regardless of assessment volume.	Spreading rent per assessment and making break-even look better when bookings rise.
Professional Liability Insurance	Fixed	Use $1,200 per month as baseline overhead for the monthly planning range.	Leaving it out because it does not tie to one client visit.
CRM and Health Records Software	Fixed	Use $800 per month as recurring operating overhead before calculating required gross profit.	Treating software as optional even though intake, notes, and records depend on it.
Assessment Tools and Consumables	Variable	Model as revenue-linked direct expense; Year 1 uses 4.5% of revenue and declines to 3.5% by Year 5.	Counting tools once, then missing consumables used on each completed assessment.
External Lab and Test Fees	Variable	Model as direct expense tied to assessment revenue; Year 1 uses 2.5% and falls to 1.7% by Year 5.	Booking revenue when tests are ordered but forgetting the outside fee.
Travel and In-Home Visit Costs	Variable	Apply as volume-linked expense; Year 1 uses 6.0% of revenue and improves to 5.0% by Year 5.	Treating evaluator time, travel, and report work as free because the founder is doing it.
Intake Coordinator Capacity	Semi-fixed	Add in steps as bookings grow: 1.0 FTE in Years 1 and 2, 2.0 FTE in Years 3 and 4, and 3.0 FTE in Year 5.	Assuming one coordinator can absorb all new volume without slower scheduling or missed follow-up.
Billing Specialist Support	Semi-fixed	Use step staffing: 0.5 FTE in Years 1 and 2, then 1.0 FTE from Year 3 onward.	Modeling collections as automatic even as claims, invoices, and documentation volume rises.

How does break-even shift from lean to base to full scale for this service?

Scenario table

Fixed overhead is the big hurdle early on. As revenue rises and variable load eases from 18.0% to 16.1%, the model moves from a cash burn to a cushion, but it still needs time to reach the Month 25 break-even point.

Planning figures only. These scenario values are model assumptions, not guarantees, and actual results will move with case mix, staffing, and referral flow.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening year	$16.8k	$3.0k	$37.4k	82.0%	-$23.6k	Still below break-even; cash burn stays heavy.
Base growth year	$44.0k	$7.5k	$43.7k	82.9%	-$7.2k	Closer to break-even, but still short of cover.
Full scale year	$94.7k	$15.2k	$50.3k	83.9%	$29.1k	Above break-even; this case creates a cushion.

What breaks first if bookings slow or costs run hot?

Stress test

Year 2 is the fragile point: revenue is about $440k against fixed costs near $437k, so break-even sits around $528k. A 10% revenue dip or 10% overhead jump pushes the model into loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in bookings, overhead, or margin.	$528k	$88k gap	There is only a thin cushion.
Revenue shortfall	Revenue falls 10% to about $396k.	$528k	$132k gap	Referral delays can push revenue below break-even.
Fixed-cost increase	Fixed overhead rises 10% to about $481k.	$580k	$140k gap	Fixed hiring before booked assessments widens the gap.
Margin pressure	Contribution margin slips from 82.9% to 78.9%.	$554k	$114k gap	In-home travel over 6% squeezes margin fast.
Combined pressure	Fixed overhead rises 10% and margin slips to 78.9%.	$610k	$170k gap	Slower bookings and cost creep make losses likely.

Is the referral pipeline ready before you lock in the lease, hires, devices, and marketing spend?

Founder checklist

Before you commit, prove the demand, pricing, and staffing path can support Month 25 break-even. The model needs a $563K cash cushion in Month 24, so don’t add fixed cost until booked volume, rates, and workflow hold up.

1Referral flow417 vs 113/mo

Verify booked assessments can stay well above the roughly 113 monthly break-even level, because Year 1 volume is not enough if referrals slip.

2Fixed burn$37.4K/mo

Check the full monthly burn from salaries and overhead before signing the lease, since that cost base sets how fast cash drops.

3Rate card$300-$550

Test that signed work clears the model prices for senior AT, mobility, cognitive, vision, and home modification visits, or margin will shrink fast.

4Staff mix2-1-1-1-1

Confirm Year 1 coverage of 2 Senior AT Specialists, 1 Mobility Consultant, 1 Cognitive Aid Expert, 1 Vision Support Specialist, and 1 Home Modification Analyst.

5Cash runway$563K

Hold enough cash to survive the Month 24 low point, because the model does not reach break-even until Month 25.

6Workflow gateMonth 25

Make report writing, billing, demo inventory, and assessment kits work at low volume first, then delay added hires if the Month 25 path starts to slip.