Balance Disorder Clinic Break-Even Revenue: About $68K/Month

Fixed costs $19.4K/mo Base monthly overhead

Contribution margin 81% After variable costs

Break-even revenue $24.0K/mo Monthly revenue target

Break-even timing Month 2 Early ramp point

Break-even calculator

Use this to test monthly revenue, variable expenses, and fixed costs against break-even for a balance disorder treatment clinic.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before costs. $ Lower volume Higher volume Variable expenses Use direct costs that rise with visits and claims volume. $ Tight costs Higher costs

Money available to cover fixed costs $56,300 $69,500 revenue - $13,200 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which balance disorder clinic expenses are fixed and which move with visit volume?

Cost classification

Break-even is reliable only when rent, clinical supplies, billing fees, and staffing are split by behavior. If payroll steps or claims fees are modeled wrong, the Month 2 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Lease, $12,500 per month	Fixed	Include the full monthly lease before calculating contribution margin.	Spreading rent by treatment and hiding idle-room pressure.
EHR and Health Insurance Portability and Accountability Act IT Support, $1,800 per month	Fixed	Keep as base overhead across the full planning range.	Treating required compliance systems as optional once volume dips.
Utilities and Facility Maintenance, $1,400 per month	Semi-fixed	Hold flat until room use or clinic hours step up.	Modeling every dollar as visit-linked usage.
Equipment Calibration Services, $600 per month	Semi-fixed	Step up when diagnostic equipment count or testing capacity expands.	Forgetting added calibration needs after capacity growth.
Clinical Medical Supplies, 4.5% of first-year revenue	Variable	Apply as a percentage of treatment revenue.	Budgeting supplies as a flat monthly line.
Diagnostic Electrode Kits, 3.5% of first-year revenue	Variable	Move directly with diagnostic treatment volume and revenue.	Understating kit use when testing mix rises.
Billing and Claims Processing, 6.0% of first-year revenue	Variable	Deduct from revenue before calculating contribution margin.	Treating payer-claim work as fixed back-office overhead.
Non-clinical wages, $429,000 in the first year	Semi-fixed	Model in staffing steps as coordinators, billing staff, and outreach capacity expand.	Treating payroll and credentialing delays like fully variable spend.

How does break-even change from a lean launch to a fuller clinic?

Scenario table

Break-even gets easier as the clinic moves from lean to full because revenue grows faster than variable costs. The base case is the key test: it shows when added staff and rooms start covering overhead with some cushion.

Planning assumptions only; actual break-even will move with payer mix, denials, staffing, and room use.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean clinic launch	$69.6K	$13.2K	$41.3K	81.0%	$15.1K	Covers fixed costs, but the cushion is thin.
Base clinic scale	$149.3K	$26.6K	$48.0K	82.2%	$74.8K	Clearer cushion, so overhead is easier to absorb.
Full clinic scale	$263.7K	$43.8K	$54.7K	83.4%	$165.3K	Strong cushion, with more room for slower weeks.

What breaks first if referrals slow or payroll runs ahead?

Stress test

The clinic clears base break-even, but the cushion fades fast if referrals slow, rooms sit open, or payroll grows ahead of visits. A 10% revenue drop, a 10% fixed-cost rise, or a 3-point margin hit can all push it back under water.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$681K	$154K cushion	Base plan clears break-even, but the cushion is not huge.
Revenue shortfall	Revenue drops 10% to about $626K.	$681K	$44K gap	Referral lag and no-shows can erase the opening cushion.
Fixed-cost increase	Fixed load rises 10% to about $607K.	$778K	$57K cushion	Higher overhead means the clinic needs fuller schedules sooner.
Margin pressure	Variable expense rises from 19% to 22% of revenue.	$707K	$128K cushion	Billing drag and payer delays cut contribution margin to 78%.
Combined pressure	Revenue falls to about $626K, fixed load rises to $607K, and variable expense hits 22%.	$745K	$119K gap	Open rooms and hiring ahead of volume push it below break-even.

Can you prove demand, payer setup, and cash before signing the balance disorder clinic lease?

Founder checklist

Check the referral pipeline, payer enrollment, room capacity, and cash cushion against the first-year model before you lock the lease. The clinic only hits its Month 2 break-even and 18-month payback if Year 1 revenue reaches $835K and cash stays above $640K by Month 6.

1Referral Pipeline$835K

Confirm physician referrals can support the Year 1 revenue plan, because the schedule has to fill fast enough to justify the clinic build.

2Payer SetupMonth 2

Validate payer enrollment before launch, since billing-dependent volume has to start right away or the break-even date slips.

3Lease Load$19.4K/mo

Keep fixed overhead near the modeled monthly level, or rent, IT, insurance, and admin will burn cash before volume settles.

4Margin Mix81% CM

Hold variable costs near 19% of revenue, which leaves about 81% contribution margin to cover salaries and lease costs.

5Capacity Map65/50/60/40%

Map rooms and schedules to the first-year utilization mix for the Senior Vestibular Physiotherapist, Clinical Audiologist, Staff Physical Therapist, and Rehabilitation Assistant so you do not hire ahead of demand.

6Cash Cushion$640K

Keep at least this much cash through Month 6, because the clinic carries about $407K of fit-out and diagnostic spend before the ramp is fully paid for.