Healthcare Clinic Break-Even Analysis: $43K Monthly Revenue

Fixed costs $16.9K Monthly base

Contribution margin 84% After variable costs

Break-even revenue $20.1K Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this to see how monthly revenue, variable expenses, and fixed costs move the clinic's break-even point.

Lean Base Full

Monthly revenue Revenue is the pool that covers variable costs and fixed overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise with patient volume, like supplies, billing, and outsourced tests. $ Lower costs Higher costs

Money available to cover fixed costs $300,888 $350,685 revenue - $49,797 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which healthcare clinic expenses stay fixed, and which move with patient volume?

Cost classification

Break-even only works if lease, insurance, supplies, software, and payroll land in the right buckets. Misclassifying volume-linked costs as fixed can make Month 1 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Lease Payment	Fixed	Include $10,000 per month from Month 1 through Month 60 before testing patient volume.	Spreading rent across visits and hiding the true monthly hurdle.
Utilities	Semi-variable	Keep the $1,500 monthly base load in overhead, then flex added usage as rooms, hours, and patient flow rise.	Treating the full bill as fixed even when clinic usage grows.
Malpractice Insurance	Fixed	Carry $2,500 per month as a fixed operating charge within the current staffing plan.	Linking insurance directly to visits instead of provider coverage needs.
Medical Supplies & Disposables	Variable	Model as 6.0% of first-year revenue because gloves, swabs, dressings, and disposables rise with treatments.	Parking supplies in office overhead and overstating contribution margin.
EHR & Billing Software Fees	Variable	Model as 4.0% of first-year revenue when fees follow billing activity or patient transactions.	Blending billing fees with fixed IT support and missing per-visit leakage.
IT Support & Software Subscriptions	Semi-variable	Start with the $1,200 monthly support base, then add usage or seat increases as clinicians and staff expand.	Calling all software fixed, even when users and claims volume increase.
Support Payroll	Semi-fixed	Step wages up by full-time equivalent levels, such as medical assistants rising from 2.0 in the first year to 5.0 by Year 4.	Modeling staff as fully fixed while headcount changes with capacity.

How does break-even shift from a lean launch to a full clinic schedule?

Scenario table

As the clinic adds providers and visits, revenue rises faster than overhead, so break-even stays reachable even as fixed costs climb. Lean tests launch risk, base checks staffing scale, and full shows how much capacity the model can absorb.

Planning assumptions only; actual clinic results will move with patient volume, staffing, and payer mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$139,295	$22,287	$36,483	84.0%	$80,525	Break-even revenue is about $43.4k, so launch risk is real.
Base expansion mix	$350,685	$49,800	$49,400	85.8%	$251,485	Break-even revenue is about $57.6k, so scale looks steadier.
Full mature schedule	$634,650	$79,331	$54,817	87.5%	$500,502	Break-even revenue is about $62.6k, so overhead is well absorbed.

What breaks the clinic break-even plan if revenue slips or costs rise?

Stress test

The base plan clears break-even by a wide margin, but the cushion shrinks fast if collections slip or costs creep up. Runway still matters because minimum cash need is $788,000 in Month 2.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$43,433	$95,862 cushion	Base plan is comfortably above break-even.
Revenue shortfall	Monthly revenue falls 20% to $111,436.	$43,433	$68,003 cushion	A 20% top-line drop still clears break-even, but cushion shrinks.
Fixed-cost pressure	Fixed costs rise 15% to $41,956.	$49,948	$89,347 cushion	A 15% fixed-cost rise pushes break-even up fast.
Margin pressure	Variable expenses rise to 20%.	$45,604	$93,691 cushion	Higher variable cost trims the margin and lifts break-even.
Combined pressure	Revenue falls 20%, variable expenses rise to 20%, and fixed costs rise 15%.	$52,445	$58,991 cushion	Still profitable, but collections below $52,445 would flip it to a loss.

Is the clinic ready to sign the lease before fixed costs, staffing, and patient volume line up?

Founder checklist

Break-even on paper is not enough if the Month 2 cash trough is still open. Before you commit, check that fixed costs, staffing, visit volume, and collections can carry the launch without starving the clinic.

1Fixed Load$16.9K/mo

Verify the lease, malpractice insurance, utilities, licensing, maintenance, IT, and office supplies fit the opening month bill, because the $10,000 rent starts before the first full patient run.

2Support Payroll$19.6K/mo

Hire medical assistants, reception, billing, and janitorial support against expected visits, not hope, because Year 1 support payroll is already about $19,583 a month.

3Visit Yield$80-$150

Check that your service mix really supports $80 to $150 per visit, because the clinic's 16% direct variable load still leaves about 84% before fixed costs.

4Visit Capacity1,407/mo

Make sure provider schedules can reach about 1,407 monthly visits, or the clinic will sit below the volume needed to turn labor into cash.

5Cash Trough$788K

Hold at least $788,000 of cash for the Month 2 low point, and phase the $150,000 build-out, $75,000 diagnostic equipment, $40,000 electronic health record (EHR) implementation, and $365,000 total capex so spend does not outrun collections.

6Go-Live GateAfter workflows

Wait to spend on marketing until scheduling, billing, and collections work cleanly, because a busy launch only helps if appointments can turn into collected revenue.