Canine Aquatic Therapy Break-Even Analysis: About $40K Per Month

Fixed costs $14.6K/mo Base overhead

Contribution margin 93.5% After variable costs

Break-even revenue $15.6K/mo Revenue target

Break-even timing Month 14 Model break-even

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even.

Lean Base Full

Monthly revenue Higher revenue gives more room to cover fixed costs. $ Low sales High sales Variable expenses Includes pool chemicals, consumables, marketing, and fees that rise with sales. $ Light costs Heavy costs

Money available to cover fixed costs $65,372 $69,917 revenue - $4,545 variable expenses

Margin ratio

93%

Covers fixed costs

Yes

Fixed monthly costs Covers rent, wages, insurance, and other monthly overhead. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses stay fixed and which move with dog aquatic therapy sales?

Cost classification

Break-even is only reliable if rent, base utilities, session supplies, fees, and staffing are split by behavior. In this model, break-even arrives in Month 14, so misclassifying one large line can move the target fast.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Rent	Fixed	Use $12,000 per month in fixed overhead from Month 1 through Month 60.	Treating rent as variable because revenue ramps.
Utilities Base	Semi-variable	Use $3,500 as the monthly base, then watch water and energy use as sessions rise.	Ignoring the base utility load of the pool.
Equipment Maintenance	Semi-variable	Start with the $1,000 monthly base and expect wear to rise with pool and treadmill use.	Holding maintenance flat while treatment volume scales.
Pool Chemicals and Filtration	Variable	Model as 2.0% of revenue because it moves with session activity.	Putting treatment supplies into fixed overhead.
Hydrotherapy Consumables	Variable	Model as 1.0% of revenue tied to therapy volume.	Forgetting per-session consumables in contribution margin.
Marketing and Promotion	Variable	Model as 2.5% of revenue, not a flat monthly spend in the break-even case.	Treating all marketing as fixed.
Payment Processing Fees	Variable	Model as 1.0% of revenue because fees rise with paid bookings.	Leaving card fees out of variable expense.
Operations and Admin Staffing	Semi-fixed	Step up salaries as FTEs rise, including Bookkeeper Admin from 0.5 FTE in the first year to 1.0 FTE by Year 5.	Leaving therapist and support staffing outside capacity planning.

How does break-even shift from lean launch to full capacity?

Scenario table

Break-even moves fast because the center carries heavy fixed payroll, but each session keeps most of its price after direct costs. The launch case still loses money, the base case covers overhead, and the full case builds a wide cushion.

Planning figures are model assumptions, not guarantees; actual results will move with referral flow, therapist mix, and utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$22,980	$1,494	$37,300	93.5%	-$15,814	Launch month still runs short of overhead by about $15.8k.
Base case	$69,930	$4,545	$42,008	93.5%	$23,377	This clears fixed costs and lands at the Month 14 break-even point.
Full-capacity case	$447,795	$29,107	$48,967	93.5%	$369,721	The fixed-cost load is small here, so the cushion is strong.

What pressures can push a canine aquatic therapy center past break-even?

Stress test

Year 2 clears break-even by about $23,377 a month, but that cushion is thin. A 15% revenue drop, a 10% fixed-cost jump, or higher variable costs can cut it fast, and the combined shock leaves just $7,585.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$46,553	$23,377 cushion	Safe only if referrals stay steady.
Revenue shortfall	Revenue falls 15% to $59,441.	$46,553	$13,569 cushion	Lower referral volume cuts the safety margin fast.
Fixed-cost pressure	Fixed costs rise 10% to about $46,209.	$50,754	$19,176 cushion	Rent or overhead inflation shortens the runway.
Margin pressure	Variable expenses rise from 65% to 95%.	$48,652	$21,278 cushion	Therapist overtime or water-treatment bills squeeze margin.
Combined pressure	Revenue falls 15%, fixed costs rise 10%, and variable expenses move to 95%.	$51,856	$7,585 cushion	14+ day onboarding delays can turn the cushion into a gap.

What should you verify before you sign the lease and buy the pool?

Founder checklist

Do not sign the lease or order aquatic equipment until you can show enough referrals, staffing, and cash to clear the 14-month break-even path. The model needs 252 sessions a month in Year 1, 742 in Year 2, and a $323K cash floor in Month 13.

1Referral volume252→742/mo

Confirm veterinary referrals can fill about 252 sessions a month in Year 1 and 742 in Year 2, because the lease only works if demand shows up fast.

2Recurring load$37.3K/mo

Make sure rent, utilities, liability insurance, equipment maintenance, supplies, software, training, and Year 1 salaried payroll fit a $37.3K monthly load.

3Variable margin93.5% CM

The listed pool chemicals, consumables, marketing, and payment fees take 6.5% of revenue, so contribution margin is 93.5% before fixed staff and rent.

4Therapist ramp3→7 therapists

Check that staffing can rise from 3 therapists in Year 1 to 7 in Year 2 while utilization moves from 60% to 70%, and avoid hiring ahead of bookings.

5Buildout ready$420K capex

Verify the pool, filtration, underwater treadmill, safety handling gear, fit-out, and building changes are complete and tested, since the listed capex totals $420K before scaling.

6Cash buffer$323K min

Keep enough cash to absorb the Month 13 low point; the plan shows minimum cash of $323K before break-even arrives in Month 14.