Electromagnetic Therapy Break-Even Analysis: $24K/Month Target

Fixed costs $14.4K/mo Monthly base

Contribution margin 82% After variable costs

Break-even revenue $17.5K/mo Monthly target

Break-even timing Month 14 Launch ramp

Break-even calculator

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

Lean Base Full

Monthly revenue This is the cash coming in before direct costs and overhead. $ Low sales High sales Variable expenses These rise with each session, like supplies, ads, and card fees. $ Light drag Heavy drag

Money available to cover fixed costs $34,434 $40,750 revenue - $6,316 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which electromagnetic therapy expenses are fixed, and which move with session sales?

Cost classification

Break-even gets reliable only when fixed overhead stays separate from session-driven expenses. Here, the Month 14 break-even depends on treating rent, software, visit supplies, marketing, and card fees by how they actually move.

Expense	Cost	Break-Even Treatment	Common Mistake
Wellness Center Lease	Fixed	Include the $4,500 monthly lease in overhead before calculating required visits.	Dividing rent by visits too early and hiding low-volume risk.
Facility Utilities	Semi-variable	Use the $650 monthly base, then watch usage pressure as hours and visits rise.	Ignoring longer operating hours once daily visits grow.
CRM and Booking Software Subscription	Fixed	Include the $200 monthly subscription in fixed overhead from Month 1.	Burying booking software in admin and understating overhead.
Equipment Maintenance Contract	Semi-fixed	Include $300 per month, with step-ups if more devices or capacity are added.	Treating maintenance as flat after equipment use expands.
Treatment Consumables and Linens	Variable	Apply $3 per visit in the first year.	Forgetting that each added session uses supplies.
Retail Product Inventory	Variable	Apply $4 per visit tied to wellness product retail activity.	Counting retail sales without the matching inventory cost.
Digital Marketing and Advertising	Variable	Apply 8% of revenue in the first year.	Modeling marketing as fixed while acquisition spend scales with sales.
Credit Card Processing Fees	Variable	Apply 3% of revenue to paid sessions and retail sales.	Using gross revenue as contribution before payment fees.

How does break-even change from a lean launch to a full operating case?

Scenario table

Break-even improves as visits rise and the mix shifts toward memberships, even though memberships pull the session price down. The full case spreads payroll, lease, and other fixed costs across more sessions, so the cushion gets much stronger.

Planning case only: these are model assumptions, not a guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$12.8k	$2.3k	$18.9k	82%	-$3.8k	Below break-even; fixed payroll and lease costs still outrun contribution.
Base operating case	$25.0k	$4.3k	$22.4k	83%	$1.8k	Break-even is reached in Month 14, with only a thin cushion.
Full mature case	$61.8k	$8.6k	$27.4k	86%	$25.9k	Strong cushion; higher volume covers fixed costs with room to spare.

What breaks the break-even plan if bookings slow or costs rise?

Stress test

This plan is tight enough that a small miss in bookings or overhead can push it off break-even fast. A 10% revenue shortfall already creates about a $19K monthly gap, and a 5-point margin slip lifts the break-even bar again.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$236,000	$0 gap	Break-even is the starting line, not the finish.
Revenue shortfall	Revenue runs 10% below plan.	$236,000	$18,900 gap	Even a small booking miss eats most of the cushion.
Fixed-cost pressure	Add $2,000 a month in payroll or rent.	$261,000	$25,000 gap	Small overhead creep moves break-even fast.
Margin pressure	Contribution margin slips from 80% to 75%.	$252,000	$16,000 gap	Discounting or higher labor coverage raises the bar.
Combined pressure	Revenue is 20% below plan, fixed overhead is $2,000 higher, and margin falls to 75%.	$255,000	$67,000 gap	That combo leaves almost no room for slippage.

Can this electromagnetic therapy center hit break-even before you sign the lease and buy the beds?

Founder checklist

Do not commit to the lease until you can prove 303 visits a month, hold the year 1 price mix, and fund the $159K launch stack. The model only works if staffing stays lean and cash can carry you past Month 14.

1Referral Flow303/mo

Map referral flow before paid ads scale, and verify you can book at least 303 visits a month because that is the demand floor behind the lease.

2Year 1 Pricing$85 / $70 / $55

Check that customers will buy single sessions at $85, package sessions at $70, and membership sessions at $55 in the first year, since the mix drives revenue per visit.

3Fixed Load$18.9K/mo

Lease, utilities, insurance, software, maintenance, janitorial, and year 1 payroll add up to about $18.9K a month, so demand has to cover that base first.

4Contribution82% CM

With 3% consumables, 4% retail inventory cost, 8% marketing, and 3% card fees, the model keeps about 82% contribution before fixed costs.

5Staff Ramp12/day

Train staff before paid sessions start, then delay the junior technician until the room can hold about 12 visits a day, because that extra $42K salary pushes break-even out.

6Cash Reserve$716K

Hold enough cash to fund the $159K launch stack and the Month 14 break-even path, because minimum cash lands near $716K in Month 25 and payback takes 50 months.