Asthma and Allergy Clinic Break-Even Analysis: $88K/Month

Fixed costs $68.3K/mo Year 1 overhead

Contribution margin 77.5% After variable costs

Break-even revenue $88.1K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Check how monthly revenue, variable expenses, and fixed monthly costs line up with break-even for an asthma and allergy clinic.

Lean Base Full

Monthly revenue More revenue creates more room to cover overhead and payroll. $ Low sales High sales Variable expenses These are direct medical costs that move with treatment volume. $ Light direct Heavy direct

Money available to cover fixed costs $483,000 $552,000 revenue - $69,000 variable expenses

Margin ratio

88%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead and staffing base break-even must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which clinic expenses are fixed, and which move with patient volume?

Cost classification

Break-even is reliable only when direct patient costs stay out of fixed overhead. Here’s the quick math discipline: classify each expense by how it behaves as treatments, revenue, and clinic capacity rise.

Expense	Cost	Break-Even Treatment	Common Mistake
Medical Supplies and Test Kits	Variable	Model at 8.5% of first-year revenue, then reduce to 6.5% by year five.	Treating test kits as rent-like overhead.
Pharmaceuticals and Serums	Variable	Model at 6.0% of first-year revenue, falling to 4.0% by year five.	Ignoring serum use in immunotherapy margin.
Digital Marketing and Referrals	Variable	Model at 5.0% of first-year revenue, then step down as referral flow improves.	Locking patient acquisition spend into overhead.
Credit Card and Billing Fees	Variable	Model at 3.0% of revenue across all forecast years.	Burying payment fees inside admin payroll.
Clinic Facility Lease	Fixed	Use $12,500 per month from Month 1 through Month 60.	Dividing rent by patient count before volume is proven.
Medical Malpractice Insurance	Fixed	Use $4,500 per month as launch overhead and ongoing monthly overhead.	Leaving required coverage out of break-even overhead.
EHR Software Subscription	Fixed	Use $1,800 per month for electronic health record software.	Mixing core charting software into variable treatment costs.
Administrative Wages	Semi-fixed	Model first-year admin payroll at $536,500 annually, with added roles as staffing steps up.	Spreading future headcount evenly across every patient visit.

How does break-even shift from a lean launch to a full clinic buildout?

Scenario table

Lean launch clears break-even, but the cushion is still modest. By Year 3 and Year 5, revenue grows faster than fixed staffing, so the real risk shifts to referral flow, payer mix, and keeping testing rooms used.

Planning assumptions only; actual payer mix, staffing, and utilization can move these numbers.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$190K	$43K	$52K	77.5%	$96K	Above break-even in Month 1, but with the narrowest cushion.
Base scale	$552K	$108K	$68K	80.5%	$376K	Well above break-even; volume growth matters more than coverage.
Full buildout	$1.06M	$175K	$77K	83.5%	$810K	Largest cushion, so the main risk is underused staff or soft referrals.

What breaks the break-even plan if demand softens or costs creep up?

Stress test

Base case leaves about a $1.02M monthly cushion. A 15% revenue dip, a 3-point margin hit, or 10% fixed-cost creep all narrow it; the combined case still clears break-even, but the room left is much thinner.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$881K/month	$1,021K cushion	Revenue is well above break-even.
Revenue shortfall	Revenue falls 15% to $1,617K/month.	$881K/month	$736K cushion	Slower new-patient flow leaves less room.
Fixed-cost pressure	Fixed overhead rises 10% to $751K/month.	$969K/month	$933K cushion	Lease, insurance, and admin creep lift the floor.
Margin pressure	Variable expense ratio rises 3 points, cutting margin to 74.5%.	$917K/month	$985K cushion	Higher supply use and billing fees push break-even up.
Combined pressure	Revenue falls 15%, margin drops to 74.5%, and fixed costs rise 10%.	$1,008K/month	$609K cushion	Payer delays and hiring ahead of schedules can erode the cushion.

What should the founder verify before signing the lease for an asthma and allergy clinic?

Founder checklist

Test the clinic against real referral flow, payer setup, staffing, and cash before you lock the lease. If the pipeline cannot support 1,340 billable treatments a month and the $812K cash trough in Month 2, the break-even case is not ready.

1Referral Flow1,340/mo

Confirm referral flow can support 1,340 billable treatments a month before you sign the lease, because that is what makes the $881K monthly break-even revenue believable.

2Fixed Load$68.3K/mo

Keep the monthly fixed load near the modeled $68.3K, or rent and payroll will push the revenue target higher.

3Margin Mix77.5% CM

Keep supply, pharma, marketing, and card fees near the modeled 22.5% of revenue so contribution stays around 77.5%.

4Capacity Ramp65% / 60%

Verify Year 1 capacity at 65% for allergists and 60% for nurses before hiring ahead of volume, because underused staff will delay payback.

5Cash Cushion$812K

Protect the $812K cash cushion for the Month 2 trough, since buildout, equipment, and early payroll hit before collections catch up.

6Launch OpsClaims-ready

Test scheduling protocols and get buildout, spirometry and FeNO equipment, refrigeration, payer credentialing, and billing workflows live before marketing spend, then confirm receptionist and billing coverage, or first claims will stall.