Dermatology Clinic Break-Even Analysis: $117K Monthly Revenue

Fixed costs $16.0K Base overhead

Contribution margin 80% After variable costs

Break-even revenue $20.0K/mo Revenue needed

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to see how monthly revenue, variable expenses, and fixed costs shape break-even.

Lean Base Full

Monthly revenue Use clinic collections before direct costs and overhead. $ Lower sales Higher sales Variable expenses Use supplies, software, and patient-acquisition costs that move with visits and procedures. $ Lower costs Higher costs

Money available to cover fixed costs $772,680 $940,000 revenue - $167,320 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs Use monthly payroll and overhead the clinic must cover even if visits slow. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even is only reliable when steady clinic commitments are kept separate from visit-driven expenses. In the first operating year, fixed overhead starts at $16,000 per month before payroll, while supplies and revenue-linked fees move with sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Rent/Mortgage	Fixed	Include the full $10,000 monthly amount in overhead.	Tying rent to patient visits.
Utilities	Semi-variable	Model the $1,500 monthly base, then watch usage as rooms and hours expand.	Treating utilities as fully volume-driven.
EHR System Subscription	Fixed	Include the $1,200 monthly subscription as standing overhead.	Blending it with billing software fees.
Cleaning Services	Semi-fixed	Start with $700 per month, then step it up when hours or rooms increase.	Assuming cleaning rises with every visit.
Medical Supplies & Pharmaceuticals	Variable	Apply the first-year rate of 5.0% of revenue.	Combining clinical supplies with office supplies.
Cosmetic Injectables & Skincare Products	Variable	Apply the first-year rate of 8.0% of revenue.	Using one supply rate for all services.
Billing & Practice Management Software Fees	Variable	Apply the first-year rate of 3.0% of revenue.	Classifying all software as fixed.
Wages	Semi-fixed	Use $77,292 per month in the first year, then step up with staffing capacity.	Treating all payroll as one fixed block.

How does break-even shift from opening to growth to mature clinic scale?

Scenario table

Break-even moves mostly with staffing, capacity, and collections mix. The opening case is the tightest on lease risk, the growth case shows hiring pressure, and the mature case adds cushion but still needs clean collections.

Planning cases only. Payer mix and collections timing can move cash even when EBITDA stays positive.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Opening clinic	$292.8k	$58.6k	$93.3k	80.0%	$140.9k	Break-even lands in Month 1, but rent and payroll still matter.
Growth clinic	$733.2k	$130.6k	$148.5k	82.2%	$454.1k	Clear cushion, but hiring has to stay tied to demand.
Mature clinic	$1.493M	$231.9k	$196k	84.5%	$1.065M	Strong cushion, yet collections timing can still strain cash.

What breaks the dermatology clinic break-even plan first?

Stress test

The base plan clears break-even at about $116,600 a month, against $292,800 of revenue, so the cushion is roughly $176,200. It gets fragile fast if provider utilization slips, claim denials rise, or payroll and rent climb ahead of demand.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$116,600	$176,200 cushion	Healthy buffer, but schedules still need to stay full.
Revenue shortfall	Monthly revenue drops by $176,200 to the break-even level.	$116,600	$0 cushion	Any more no-shows or denials push the clinic below break-even.
Fixed-cost pressure	Fixed overhead rises by $16,000 a month.	$136,615	$156,185 cushion	More staff or higher occupancy costs lift the floor fast.
Margin pressure	Variable burden rises from 20% to 25% of revenue.	$124,389	$168,411 cushion	More supplies, injectables, or marketing spend squeeze each visit.
Combined pressure	Revenue falls to break-even, fixed overhead adds $16,000, and variable burden rises to 25%.	$145,723	$29,123 gap	Small misses across volume, cost, and mix flip the plan negative.

Can this clinic cover the lease, payroll, and launch costs before you sign the space?

Founder checklist

Don’t sign the lease or add payroll until the fixed load, payer setup, and Month 2 cash trough all clear. For this clinic, break-even only holds if booked volume, staffing, and launch timing line up with the model.

1Lease load$93.3K/mo

Verify booked visits can cover $10,000 rent plus $83,292 other fixed overhead before you commit to the space.

2Staffing ramp2 derm, 1 PA, 2 RN, 1 esth, 1 laser

Confirm Year 1 staffing matches this mix, and do not add the next hire unless booked volume can support the next payroll step.

3Billing stack80% CM

Get payer credentialing and billing live before launch, because 13% COGS plus 7% variable costs leaves 80% contribution before fixed payroll and rent.

4Core capex$480K

Make sure the $150,000 build-out, $200,000 lasers, $80,000 imaging, and $50,000 exam room furnishings are funded and installed before opening.

5Cash reserve$721K

Hold at least this minimum cash through Month 2, since the model bottoms out at $721,000 and that is where a slow start hurts most.

6Acquisition pace40% of revenue

Check that first-year patient acquisition can carry 40% of revenue, and keep capacity at the 60.0% starting level until booked visits prove the next hire.