Gymnastics Center Break-Even Analysis: $63K Monthly Revenue Target

Fixed costs $22.5K/mo Base overhead

Contribution margin 85% After variable costs

Break-even revenue $26.5K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against the break-even point for a gymnastics center.

Lean Base Full

Monthly revenue This is the sales you bring in each month, and it sets the room you have for overhead. $ Slow month Peak month Variable expenses These are direct costs tied to classes, events, supplies, and marketing that rise with sales. $ Tight spend High spend

Money available to cover fixed costs $74,375 $87,500 revenue - $13,125 variable expenses

Margin ratio

85%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the center must cover before profit starts. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which expenses are fixed, and which move with sales for a gymnastics center?

Cost classification

Break-even is only reliable when each expense is mapped to how it behaves. Treating coach payroll, utilities, and facility spending the same can make Month 1 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease	Fixed	Use $15,000/month as a fixed monthly hurdle before contribution margin.	Treating rent as volume-linked when unused space still gets paid for.
Utilities	Semi-fixed	Start with $2,500/month, then stress-test higher usage as classes and billable days rise.	Locking utilities as fixed even when schedule load increases.
Business Insurance	Fixed	Use $1,000/month unless coverage limits, programs, or facility risk change.	Scaling insurance directly with revenue without a policy change.
Coach Salaries	Semi-variable	Keep base coaching coverage in break-even, then add staff as coach FTE rises from 6.0 in the first year to 12.0 in the fifth year.	Treating all payroll as variable or all payroll as fixed.
Merchandise Cost	Variable	Apply 3.0% of revenue in the first year, falling to 2.0% by the fifth year.	Putting merchandise into overhead instead of tying it to sales.
Program Supplies	Variable	Apply 1.5% of revenue in the first year, falling to 1.0% by the fifth year.	Ignoring supply use as enrollment and session volume grow.
Marketing & Advertising	Variable	Model 8.0% of revenue in the first year, then reduce to 5.0% by the fifth year.	Holding marketing flat while occupancy moves from 40.0% to 85.0%.
Equipment Maintenance & Safety	Semi-fixed	Use $1,200/month as the base, with step-ups when added classes put more wear on equipment.	Treating all facility spending as fixed even when equipment load rises.

How does break-even shift from a lean opening case to a full-capacity case?

Scenario table

As occupancy moves from 40% to 85% and billable days rise from 20 to 24, revenue grows faster than variable costs. Contribution margin rises too, so break-even gets easier to hold.

Planning assumptions only; actual break-even will move with enrollment and payroll.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Year 1 lean opening case	$87,500	$13,125	$53,667	85%	$20,708	Positive, but the cushion is still thin if fill slips.
Year 3 base growth case	$119,030	$14,284	$64,167	88%	$40,579	Clearer cushion; volume is now covering overhead more comfortably.
Year 5 full-capacity case	$149,800	$14,980	$74,083	90%	$60,737	Strong cushion; break-even risk is low if class fill stays high.

What breaks the break-even plan for a gymnastics center?

Stress test

Year 1 covers overhead at the base plan, but the cushion is not wide. A 20% revenue drop still clears break-even, while higher fixed costs or weaker margins can push the month close to a gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$63,138	$24,362 cushion	Healthy on paper, but the cushion depends on steady class fill.
Revenue drop	Monthly revenue falls 20% from plan.	$63,138	$6,862 cushion	A 20% drop still clears overhead, but room for error shrinks.
Fixed-cost rise	Fixed costs rise 10% from the Year 1 base.	$69,451	$18,049 cushion	Lease and staffing creep can eat most of the cushion.
Margin pressure	Variable expenses rise from 15% to 20%.	$67,084	$20,416 cushion	Higher variable spend trims the buffer even if sales hold.
Combined pressure	Revenue falls 20%, variable expenses rise to 20%, and fixed costs rise 10%.	$73,792	$3,792 gap	Slow fill plus higher costs can flip the month to a loss.

What should a gymnastics center founder verify before signing the lease and buying equipment?

Founder checklist

Test demand, staffing, and cash against the break-even math before you commit. If pre-sales cannot support at least $63.1K in monthly revenue and Month 1 cash cannot stay above $943K, the launch is too heavy.

1Pre-sales$63.1K/mo

Pre-sell classes until the center can clear the $63,100 monthly break-even target before you sign the lease.

2Fixed load$53.7K/mo

Add the $22,500 of facility overhead to about $31,167 of Year 1 wages so you know the monthly burn you must cover.

3Margin check85% CM

Keep Year 1 variable costs at 15% or less so each revenue dollar leaves enough to cover rent and payroll.

4Schedule fit40% occupancy

Make sure preschool, recreational, developmental team, and adult fitness classes can run at 40% occupancy without crowding coaches.

5Cash reserve$943K min

Hold cash above the modeled Month 1 minimum, because the first months also carry about $325,000 of equipment, mats, HVAC, fit-out, systems, furniture, IT, and signage spend.

6Launch revenue$87.5K/mo

Confirm the opening mix can reach $87,500 a month in Year 1 so the staff plan does not outrun demand.