Dental Clinic Break-Even Analysis: $178K Monthly Collections Target

Fixed costs $142.1K Payroll included

Contribution margin 80% After variable costs

Break-even revenue $177.6K Monthly target

Break-even timing Month 2 Forecast break-even

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and fixed costs for a dental clinic.

Lean Base Full

Monthly revenue Revenue is the cash in that can absorb fixed overhead after direct costs. $ Slim month Strong month Variable expenses Use direct costs that rise with patient volume, like supplies, marketing, and card fees. $ Low spend High spend

Money available to cover fixed costs $280,000 $350,000 revenue - $70,000 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs Use the monthly cost base that break-even has to cover before profit starts. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even only works if the $35,000/month recurring overhead base and salaried FTEs are separated from revenue-linked items like supplies, marketing, and card fees. Misclassifying payroll as per-treatment variable can make Month 2 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Lease Payment	Fixed	Include $25,000 per month in fixed overhead from Month 1 through Month 60.	Dividing rent by expected treatments and treating it like it falls when visits dip.
Utilities	Semi-variable	Use the modeled $3,500 per month as the base, then add usage only if the model adds a treatment or chair-hour driver.	Putting the full utility bill into variable expense without a usage formula.
Insurance Premiums	Fixed	Include $2,000 per month in fixed overhead because the model runs it consistently from Month 1 to Month 60.	Scaling insurance with revenue even though the assumption is a flat monthly premium.
Dental Supplies	Variable	Apply the revenue percentage, starting at 7.0% in the first year and falling to 6.0% by the fifth year.	Budgeting supplies as a flat monthly amount and hiding margin pressure from treatment mix.
Marketing & Patient Acquisition	Variable	Apply the revenue percentage, starting at 9.0% in the first year and falling to 5.0% by the fifth year.	Treating acquisition spend as fixed even though the model links it to revenue growth.
Payment Processing Fees	Variable	Apply the revenue percentage, starting at 2.5% in the first year and declining to 2.2% by the fifth year.	Leaving card and payment fees out of contribution margin.
Provider and admin payroll	Semi-fixed	Treat salaried FTEs as overhead within each staffing step; Year 1 positions start in Month 1 and expand by planned FTE counts.	Treating provider payroll as purely Variable when the Year 1 plan carries salaried FTEs from Month 1.
Professional Services	Semi-fixed	Use $1,000 per month as the current service tier and step it up only when operating scale requires more support.	Scaling the full amount with revenue instead of modeling it as a capacity step.

How does break-even change from a lean dental clinic to a full one?

Scenario table

Break-even gets easier as the clinic moves from lean to full staffing. Revenue rises faster than variable costs, so the contribution margin widens and the profit cushion grows.

Planning assumptions only; actual collections, staffing, and payer mix can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch clinic	$215,550	$43,110	$142,083	80.0%	$30,357	Near break-even; small collection slips can erase profit.
Base chair-utilization plan	$621,033	$106,818	$234,583	82.8%	$279,632	Healthy cushion, but chair use still needs tight control.
Full mature clinic	$1,445,760	$205,298	$348,750	85.8%	$891,712	Strong cushion if staffing and capacity stay filled.

What breaks the Year 1 break-even plan for a dental clinic?

Stress test

Year 1 has a $37,946 cushion above break-even, but it’s not wide. A 20% revenue miss or a 10% fixed-cost jump can wipe it out fast, and higher variable spend makes the gap tighter.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$177,604	$37,946 cushion	There is profit, but the cushion is modest.
Revenue shortfall	Revenue falls 20% to $172,440.	$177,604	$5,164 gap	This drops the clinic below break-even.
Fixed-cost pressure	Fixed costs rise 10% to $156,292.	$195,365	$20,185 cushion	The clinic still clears break-even, but the cushion shrinks fast.
Margin pressure	Variable expenses rise to 25% of revenue.	$189,444	$26,106 cushion	Higher marketing, processing, or supply costs push break-even up.
Combined pressure	Revenue falls 10%, variable expenses rise to 25%, and fixed costs rise 10%.	$204,790	$10,795 gap	Demand softness plus cost pressure puts the clinic under break-even.

Can you lock the lease and opening spend without blowing up the clinic's break-even plan?

Founder checklist

Only lock the lease and build-out once the first-year staffing, patient volume, and opening cash line up with the model. At $35.0K of monthly fixed costs, $107.1K of Year 1 payroll, and $1.86M of capex, cash bottoms at negative $778K in Month 10.

1Lease Load$35.0K/mo

Verify the $25.0K rent and the rest of the fixed overhead still fit the plan before you sign, because the clinic starts with $35.0K a month in fixed costs before payroll.

2Margin Mix80% CM

Check that service mix holds near an 80% contribution margin, since supplies, marketing, and payment processing take 20% of revenue in Year 1.

3Demand Proof540/mo

Validate local demand for 540 completed treatments a month at launch, because the forecast only rises to 630 a month by Year 5.

4Staffing Ramp2-2-1-1-1

Confirm the schedule across 2 general dentists, 2 hygienists, 1 cosmetic dentist, 1 orthodontist, and 1 oral surgeon can be staffed on time, or chair time will cap volume.

5Cash Reserve-$778K

Keep enough opening cash to survive the Month 10 low of negative $778K, because EBITDA break-even does not protect you from a cash gap.

6Launch StackBefore launch

Make software setup, insurance, supplies, marketing pipeline, payment processing, and referral flow live before launch so first-month patient flow is not the weak link.