Health Coaching Break-Even Point: About $256K Per Month

Fixed costs $5.3K/mo Base overhead only

Contribution margin 74% After variable costs

Break-even revenue $24.6K/mo Revenue at parity

Break-even timing Month 9 Forecast payback point

Break-even calculator

Use this calculator to test whether monthly revenue covers variable expenses and the fixed cost base.

Lean Base Full

Monthly revenue Revenue is the pool that covers variable costs and then fixed costs. $ Low sales High sales Variable expenses These rise with revenue, like coach pay, ad spend, and client software. $ Low costs High costs

Money available to cover fixed costs $45,000 $60,000 revenue - $15,000 variable expenses

Margin ratio

75%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with client volume?

Cost classification

Break-even is only reliable when each expense follows the right volume behavior. In this model, contractor pay, partner fees, ads, and per-client software should move with revenue, while rent and core overhead stay flat.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent & Utilities	Fixed	Use $2,500 per month in operating overhead.	Scaling rent with each new client.
Legal & Accounting Fees	Fixed	Use $750 per month as recurring overhead.	Treating routine compliance as sales-driven.
Direct Coach Compensation	Variable	Apply 12% of revenue in the first year.	Burying contractor pay in fixed overhead.
Specialist Partner Fees	Variable	Apply 3% of revenue for specialist support.	Ignoring elite-tier delivery fees in margin.
Digital Ad Spend & Content Creation	Variable	Apply 10% of revenue in the first year.	Modeling all marketing as fixed spend.
Per-Client Software	Variable	Apply 4% of revenue for client-linked tools.	Combining usage fees with base software.
Operations Manager	Semi-fixed	Add capacity in staffing steps, starting at $70k annual salary.	Spreading management pay evenly per client.
Salaried Health Coach	Semi-fixed	Add coach capacity in FTE steps at $60k annual salary.	Treating salaried capacity like hourly contractors.

How does break-even move from a lean start to base and full growth in health coaching?

Scenario table

Contribution margin is the share left after variable costs. As staffing and support grow, fixed costs rise faster than margin, so the monthly revenue needed to break even climbs from about $17.9k to $35.6k.

Planning figures are model assumptions, not a guarantee; actual break-even will move with client mix, staffing, and retention.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean Year 1 setup	$17.9k	$5.2k	$12.7k	71.0%	$0	Lowest cushion; about $214.8k a year keeps it at break-even.
Base Year 1 support	$21.4k	$6.2k	$15.2k	71.0%	$0	Reference case; about $256.3k a year is the line.
Full Year 2 build	$35.6k	$9.3k	$26.3k	73.7%	$0	Heavier payroll lifts break-even to about $427.4k a year.

What breaks first if health coaching bookings slow or costs rise?

Stress test

The plan is tight: a 10% revenue miss or 10% fixed-cost jump adds about a $26k gap, and variable expense pressure lifts break-even to about $276k. If all three hit together, the gap grows to about $48k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$256k	$0 gap	Base case has no cushion.
Revenue shortfall	Revenue falls 10% to about $230k.	$256k	$26k gap	Fewer bookings push the plan below break-even.
Fixed-cost pressure	Fixed costs rise 10% to about $200k.	$282k	$26k gap	Hiring or overhead growth raises the hurdle.
Margin pressure	Variable expense rises from 29% to 34%.	$276k	$20k gap	Higher CAC or weak package conversion cuts contribution.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expense rises to 34%.	$304k	$48k gap	Three-way pressure leaves the plan well below break-even.

Should you commit to recurring health coaching spend before the mix, CAC, and hiring ramp prove break-even?

Founder checklist

Not yet, unless the pricing mix, CAC, and staffing plan match the model. Break-even lands in Month 9, but Year 1 EBITDA is still about -$20K, so the first commitment should wait for proof that early demand can carry the fixed load.

1Price Mix$319/mo

Verify Basic, Premium, Elite, and Corporate mix really produces about $319 of weighted Year 1 revenue per active client before you lock in recurring spend.

2CAC Check$150 CAC

Prove you can hold acquisition near the Year 1 target and fill leads before you scale the $25,000 marketing budget.

3Margin Test71% CM

Check that direct coach pay, partner fees, ad spend, and software stay near 29% of revenue so the model still leaves room for overhead.

4Overhead Floor$5.25K/mo

Keep rent out of the base plan unless in-person demand is clear, because the core fixed load already includes office, insurance, legal, software, maintenance, training, and supplies.

5Staff RampMonth 7/13

Add operations support only when scheduling volume justifies it, and avoid salaried coach hires until retained clients can absorb the load.

6Cash Cushion$799K

Make sure reserves can cover the Month 16 cash low point, because that is the gap between launch spend and the model’s payback timing.