Complete Decongestive Therapy Break-Even: $36K Monthly Revenue

Fixed costs $9.6K/mo Overhead base

Contribution margin 77% After variable

Break-even revenue $12.4K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this to test monthly revenue, variable expenses, and fixed costs against break-even for a Complete Decongestive Therapy clinic.

Lean Base Full

Monthly revenue Revenue is the top line that funds variable costs and overhead. $ Low sales High sales Variable expenses These are direct costs that rise as treatment volume grows. $ Low costs High costs

Money available to cover fixed costs $173,050 $212,750 revenue - $39,700 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin must cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even is reliable only when treatment-level items reduce contribution margin and stable overhead stays fixed. For this clinic, supplies, garment inventory, claims fees, and referral spend should move with revenue, not sit in rent-style overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Rent	Fixed	Use $6,500 per month as fixed overhead from Month 1 through Month 60.	Spreading rent per treatment and hiding the real monthly hurdle.
EHR and Practice Management Software	Fixed	Use $450 per month as fixed overhead for the relevant planning range.	Linking the full software bill to each added treatment.
Medical Malpractice Insurance	Fixed	Use $1,200 per month as fixed overhead in the break-even model.	Treating insurance like a claims fee that rises with each visit.
Medical Bandaging and Clinical Supplies	Variable	Include in contribution margin at 8.5% of revenue in the first year, falling to 7.0% by Year 4.	Treating supply usage as fixed overhead instead of a per-treatment drag.
Compression Garment Inventory Cost	Variable	Include in contribution margin at 5.5% of revenue in the first year, falling to 4.0% by Year 4.	Counting inventory as a flat monthly bill when it follows patient volume.
Medical Billing and Claims Processing	Variable	Include in contribution margin at 5.0% of revenue in the first year, falling to 4.0% by Year 4.	Putting claims processing in fixed overhead and overstating margin per treatment.
Physician Referral Marketing	Variable	Include in contribution margin at 4.0% of revenue in the first year, falling to 2.5% by Year 4.	Treating referral spend as fixed when it scales with patient acquisition.
Front Desk Coordinator	Semi-fixed	Model $42,000 per full-time equivalent, stepping from 1.0 FTE in Year 1 to 2.5 FTE in Year 5.	Assuming admin payroll rises smoothly with each treatment instead of in staffing steps.

How does break-even shift from a lean CDT clinic to a full build?

Scenario table

Lean clears break-even in Month 1 because fixed overhead is still covered by contribution margin. Base and full scale improve the cushion, but any clinician payroll not in the wage schedule will tighten the result.

Planning numbers only. Actual results will move with payer mix, staffing, and any clinician payroll not included in the wage schedule.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1	$591k	$136k	$278k	77%	$177k	Break-even is covered, but the cushion is thin.
Base Year 2	$1,257k	$264k	$371k	79%	$622k	This is the cleanest scale point; coverage is strong.
Full Year 5	$3,935k	$689k	$521k	82.5%	$2,725k	This is the widest cushion, but payroll still needs a check.

What breaks the break-even plan for a CDT clinic?

Stress test

The base plan clears break-even at about $361k in revenue, with roughly $230k of cushion on the model’s $591k top line. That cushion gets tight if referrals slow, billing slips, supplies run heavy, or overhead climbs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Base case uses 23% variable expenses and $278k fixed overhead.	$361k	$230k cushion	The clinic clears break-even, but the cushion is not huge.
Revenue shortfall	Revenue falls 10% to $532k.	$361k	$171k cushion	A modest referral dip still covers break-even, but profit falls fast.
Fixed-cost increase	Fixed overhead rises by $50k to $328k.	$426k	$165k cushion	Rent, admin, or staffing creep pushes the break-even line up hard.
Margin pressure	Variable expenses rise from 23% to 28%.	$386k	$205k cushion	Higher supplies or slower collections cut contribution margin.
Combined pressure	Revenue falls 10%, variable expenses rise to 28%, and fixed overhead rises to $328k.	$456k	$76k cushion	One more hit could pull the clinic close to break-even.

Can this CDT clinic prove demand and cash before signing the lease?

Founder checklist

Don’t sign the lease until referrals, payer setup, staffing, and cash all line up with the model. It breaks even in Month 1 on paper, but only if the Month 2 cash trough of $865K and the 11-month payback still hold.

1Referral Proof$59.1K/mo

Confirm referral sources and claims setup can support the modeled Year 1 monthly revenue run rate before you lock in any lease or staffing plan.

2Lease Stack$9.6K/mo

Check that the $6.5K rent plus the listed fixed overhead for software, insurance, utilities, licensing, and liability stays workable before payroll.

3Unit Mix77% CM

Keep supplies, garments, billing, and physician referral marketing near the modeled 23% of revenue so contribution margin stays around 77%.

4Treatments311/mo

Verify the Year 1 schedule can cover about 311 monthly treatments across the senior CLT specialist, staff physical therapist, occupational therapist, and massage therapist CLT roles.

5Cash Reserve$865K

Hold at least the modeled Month 2 cash trough, because buildout, equipment, and payroll hit before collections fully ramp.

6Payback11 mo

Test a slower opening volume, because an 11-month payback can slide fast if referrals or credentialing lag in the launch months.