Dementia-Friendly Interior Design Break-Even: About $27K/Month

Fixed costs $19.8K/mo Payroll + overhead

Contribution margin 73% After direct spend

Break-even revenue $27.1K/mo Monthly target

Break-even timing Month 4 Launch ramp

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue sets the pool that covers variable costs and then fixed overhead. $ Low sales High sales Variable expenses These rise with project volume and service mix, so they squeeze contribution margin. $ Light costs Heavy costs

Money available to cover fixed costs $177,320 $227,333 revenue - $50,013 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly base your contribution margin has to cover. $ Lean overhead High overhead

Break-even chart Revenue Total costs

Which dementia-friendly interior design expenses are fixed, and which move with sales?

Cost classification

Break-even is reliable only when stable overhead stays separate from project-driven spending. In the first year, monthly fixed overhead is $5,400 before payroll, while variable project costs run up to 27% of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio Rent	Fixed	Include $3,500 per month in overhead for each break-even month.	Treating rent as project spending and understating the sales floor.
Design Software Subscriptions	Fixed	Include $450 per month in base overhead, regardless of project count.	Spreading software across jobs and making margins look too low.
Professional Liability Insurance	Fixed	Include $600 per month as required operating overhead.	Leaving insurance out until renewal and overstating early profit.
Marketing Tools and SEO Maintenance	Fixed	Include $300 per month in recurring overhead.	Combining tools with campaign spend and losing CAC visibility.
Year 1 Marketing Budget	Semi-fixed	Model $15,000 per year, or $1,250 per month, when active campaigns are running.	Assuming every marketing dollar scales directly with each project.
Project Specific Travel and Documentation	Variable	Model as 4% of revenue in the first year.	Putting travel in overhead and missing the true per-project drag.
Contractor Coordination and Oversight	Variable	Model as 10% of revenue in the first year.	Counting coordination as fixed staff time and overstating contribution margin.
Clinical Consultation Fees	Variable	Model as 8% of revenue in the first year.	Forgetting clinical input on complex jobs and pricing below delivery effort.

How does break-even shift from a lean launch to a full-service model in dementia-friendly interior design?

Scenario table

Higher-margin work makes break-even easier to hit, even when fixed costs rise. In this model, the lean case runs at 73% contribution margin, the base case at 75.5%, and the full-service case at 82%.

Planning assumptions, not guarantees; actual break-even will move with referral flow, staffing, and project mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$61.7k	$16.7k	$19.8k	73%	$25.2k	Break-even sits near $27.1k a month, so referral flow has to stay steady.
Base small-studio case	$140.8k	$34.5k	$26.8k	75.5%	$79.5k	Break-even rises to about $35.5k a month, but the cushion is still workable.
Full-service growth case	$442.2k	$79.6k	$39.6k	82%	$323.0k	Break-even lands around $48.3k a month, and facility contracts add the widest cushion.

What happens to break-even if referrals slow or costs creep up?

Stress test

The plan has room now, but the cushion shrinks fast if referrals slow, revisions pile up, or fixed overhead rises. The biggest pressure points are revenue delay, margin drift, and hiring before demand is steady.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Base case at a 73% contribution margin and $198k fixed costs.	$271k	$252k cushion	Healthy headroom, but it depends on signed projects closing on time.
Revenue shortfall	Revenue drops 20% to about $493k as referrals slow.	$271k	$162k cushion	Slower lead flow cuts cushion fast even if costs hold.
Fixed-cost pressure	Fixed costs rise 15% to about $227k from overhead creep.	$312k	$223k cushion	New hires or higher overhead push the break-even bar up.
Margin pressure	Contribution margin falls to 68% from extra revisions and travel.	$291k	$222k cushion	More site visits and rework can erode margin before volume stabilizes.
Combined pressure	Revenue drops 20%, margin slips to 68%, and fixed costs rise 15%.	$335k	$108k cushion	This is still positive, but there is little room for delay or unfunded hiring.

What should you verify before you sign the studio lease and hire the first design team?

Founder checklist

Don’t sign the lease until signed work can cover the $3.5K studio rent and the Year 1 fixed burn of about $18.5K a month. The model does reach Month 4 break-even, but only if demand is real before you lock in staffing and build-out.

1Demand Proof$61.7K/mo

Verify signed assessments and full design work can reach about $61.7K of revenue a month before you lock the lease, because the studio only works if pipeline beats fixed burn.

2Fixed Burn$18.5K/mo

Check that gross profit can cover about $18.5K of fixed spend a month, including the $3.5K studio rent and the $157.5K Year 1 payroll load, or Month 4 break-even slips.

3Contribution Margin73% CM

Confirm each revenue dollar keeps about 73 cents after contractor oversight, sourcing, clinical fees, and travel, so the work funds rent and payroll instead of just activity.

4Staffing Ramp2.0 FTE

Hold delivery at the Year 1 load of 2.0 FTE until booked work justifies more help, and buy the $4.5K sample set plus the $11K core gear pack before you add more headcount.

5Cash Runway$839K

Protect the $839K minimum cash need in Month 2 and the $57K opening stack, because cash dips before payback and the model only turns positive by Month 9.

6CAC Test$450 CAC

Test paid consultations and referral conversion at a $450 Year 1 CAC before scaling the $15K marketing budget, because weak lead costs will erase the Month 4 break-even plan.