Break-Even Analysis For A Dizziness And Balance Disorder Clinic: Month 1

Fixed costs $44.7K/mo Core overhead

Contribution margin 81.5% Revenue left over

Break-even revenue $54.8K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Test how monthly revenue, direct costs, and fixed overhead shape break-even for a dizziness and balance disorder clinic.

Lean Base Full

Monthly revenue Revenue sets the pool that has to cover direct costs and overhead. $ Lower volume Higher volume Variable expenses These costs rise with patient volume and service mix. $ Lower costs Higher costs

Money available to cover fixed costs $283,920 $338,000 revenue - $54,080 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin has to cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which dizziness and balance disorder clinic expenses are fixed, and which move with patient volume?

Cost classification

Break-even is only reliable when fixed overhead stays out of visit-level margin and true variable items follow revenue. Here, the launch-month overhead is material, so mislabeling one line can make Month 1 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Lease	Fixed	Include the $12,500 monthly lease in fixed monthly overhead.	Tying rent to visit count instead of capacity.
EHR and Practice Management Software	Fixed	Include the $1,800 monthly platform fee in overhead from Month 1.	Burying it in general admin and losing visibility.
Professional Liability Insurance	Fixed	Include the $3,200 monthly premium in launch-month fixed overhead.	Adding it only after patient volume ramps.
Utilities and High Speed Internet	Semi-variable	Model the $1,100 monthly base as overhead, then review usage as clinic hours expand.	Treating the full amount as visit-driven.
Maintenance and Equipment Calibration	Semi-fixed	Include the $2,500 monthly amount, then step it up when diagnostic rooms or equipment use expands.	Spreading it evenly across every treatment forever.
Clinical Medical Supplies	Variable	Apply the first-year 4.5% revenue rate inside contribution margin.	Listing supplies as fixed clinic overhead.
Diagnostic Consumables and Electrodes	Variable	Apply the first-year 3.0% revenue rate to visits that use testing supplies.	Ignoring consumables in diagnostic-heavy visits.
Medical Billing and Revenue Cycle Management	Variable	Apply the first-year 6.0% revenue rate before calculating contribution margin.	Counting billing fees below break-even instead of per revenue dollar.

How does break-even shift from a lean launch to a full-service dizziness and balance clinic?

Scenario table

As revenue rises from about $117k a month to about $581k, fixed costs only move from about $60k to $77k, so break-even stays near $74k to $88k. The Year 3 base model is the cleanest anchor for planning.

Planning assumptions only; actual reimbursement and case mix can shift these results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Year 1 lean launch clinic	$117k	$22k	$60k	81.5%	$35k	About $74k break-even revenue; referrals need to stay steady.
Year 3 base outpatient clinic	$338k	$54k	$68k	84.0%	$215k	About $82k break-even revenue; this is the best midscale planning case.
Year 5 full-service clinic	$581k	$78k	$77k	86.5%	$426k	About $89k break-even revenue; scale adds the widest cushion.

What breaks the break-even plan for this dizziness and balance clinic?

Stress test

The base plan has about $347K of monthly cushion, but that slack shrinks fast if referrals slow, claims collect late, or overhead climbs. Under all three hits at once, only about $115K is left, so break-even gets fragile.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue, variable expenses, or fixed overhead.	$820K	$347K cushion	Solid cushion, but not wide.
Revenue shortfall	Monthly revenue falls 15% to about $992K.	$820K	$205K cushion	Demand softness trims the safety buffer.
Fixed-cost pressure	Fixed overhead rises 10% to about $664K.	$880K	$287K cushion	Lease, software, and staff costs can erode margin fast.
Margin pressure	Variable expenses rise to 215% of sales.	$855K	$312K cushion	Billing, referral, and supply pressure cut cash more than it looks.
Combined pressure	Revenue falls 15%, variable expenses rise to 215%, and fixed costs rise 10%.	$846K	$115K cushion	Small delays in referrals or claims can erase the buffer.

What should the founder verify before signing the lease for a dizziness and balance disorder clinic?

Founder checklist

Don't sign the lease until referral flow, room scheduling, staffing, and billing can support about $74.1K in monthly revenue. The model also needs at least $614K of cash through Month 2, so the build does not run out of money while the clinic is still ramping.

1Demand floor$74.1K/mo

Verify enough physician referrals and first-visit demand to clear monthly break-even, or the clinic will not cover its base cost.

2Lease fit$60.4K/mo

Check parking, elevators, restrooms, and patient-safe flooring before signing, because fixed payroll and overhead run about $60.4K a month before variable costs.

3Contribution mix81.5% CM

Test billing handoffs and referral marketing early so medical billing at 6% and physician referral marketing at 5% stay inside plan and leave about 81.5% contribution margin.

4Staffing ramp50%-65%

Match Year 1 staffing to 65%, 60%, and 50% capacity for vestibular audiologists, vestibular physical therapists, and neurotologists, or the schedule will bottleneck.

5Cash cushion$614K

Keep at least $614K of cash through Month 2, because the build includes $540K of capex and the model shows the cash low then.

6Launch mapMonth 1

Map VNG, computerized dynamic posturography, rotary chair, and VEMP testing before launch so credentialing, payer setup, and room use are ready on day one.