Holistic Health Center Break-Even Analysis: $72K Monthly Revenue

Fixed costs $59.9K/mo Launch overhead

Contribution margin 83% After variable costs

Break-even revenue $72.2K/mo Monthly target

Break-even timing Month 26 Payback point

Break-even calculator

Use this to test whether monthly revenue clears variable costs and the fixed cost base.

Lean Base Full

Monthly revenue Higher revenue leaves more room to cover fixed costs. $ Lower sales Higher sales Variable expenses These costs rise with visits and payment volume. $ Lower costs Higher costs

Money available to cover fixed costs $64,304 $76,100 revenue - $11,796 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Lean base Larger base

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with patient visits?

Cost classification

Break-even in Month 26 only holds if fixed overhead, step hiring, and revenue-linked costs are kept separate. Misclassifying practitioner pay or patient acquisition spend can make the visit target look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Lease	Fixed	Include $12,000 in monthly overhead from Month 1 through Month 60.	Tying rent to booked visits instead of room commitment.
Center Director salary	Fixed	Include $120,000 annually, or $10,000 monthly, from launch.	Treating owner or director coverage as free labor.
Practitioner Fixed Salary Component	Semi-fixed	Model $70,000 per full-time equivalent as practitioner headcount rises.	Hiring ahead of demand and hiding the step-up.
Front Desk & Admin Staff	Semi-fixed	Add $45,000 annually for each full-time equivalent added.	Assuming admin coverage scales smoothly with visits.
Performance-based Practitioner Comp	Variable	Use 4.0% of revenue in the first year.	Putting incentive pay into fixed payroll.
Medical & Wellness Supplies	Variable	Use 3.5% of revenue in the first year.	Ignoring supplies when visit volume improves.
Marketing & Patient Acquisition Costs	Variable	Use 7.0% of revenue in the first year.	Freezing acquisition spend while forecasting growth.
Payment Processing Fees	Variable	Use 2.5% of revenue across the forecast.	Leaving card fees out of contribution margin.

How does break-even shift as the center moves from a lean launch to a full operating model?

Scenario table

Lean launch stays exposed because Year 1 occupancy runs only 50% to 65%, so rent and staff soak up cash. By Year 5, occupancy reaches 72% to 82%, and the model shifts from losses in Years 1 and 2 to positive EBITDA in Year 3.

Planning cases only; actual results will move with visit mix, staffing, and utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$642k	$109k	$599k	83.0%	-$66k	Still below break-even; about a $66k monthly gap.
Base run-rate	$1.241m	$201k	$908k	83.8%	$132k	Just over break-even; about a $133k monthly cushion.
Full scale	$3.856m	$521k	$1.687m	86.5%	$1.649m	Well past break-even; about a $1.65m monthly profit.

What breaks this break-even plan for the holistic health center?

Stress test

This plan only works if bookings stay on pace and contribution margin holds near 83%. A small revenue miss or higher fixed costs pushes break-even above the Year 1 target fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change. Year 1 revenue stays at $642k and fixed costs stay at $599k.	$722k	$80k gap	The plan starts with a thin cushion.
Revenue shortfall	Year 1 revenue slips to $592k while costs stay flat.	$722k	$130k gap	Slow bookings are the first sign the plan is slipping.
Fixed-cost increase	Fixed costs rise to $649k while margin stays at 83%.	$782k	$140k gap	Lease or staffing growth can wipe out the cushion.
Margin pressure	Contribution margin slips to 80% while fixed costs stay at $599k.	$749k	$107k gap	Higher acquisition and fee drag make each visit less profitable.
Combined pressure	Revenue falls to $592k, fixed costs rise to $649k, and margin slips to 80%.	$811k	$219k gap	Slow bookings plus weaker margin can push the launch far off track.

What should you verify before signing the lease and hiring for a holistic health center?

Founder checklist

At year-one prices and volume, the model points to about $64.2K in monthly revenue from 440 monthly treatments. Confirm those bookings are real before you lock space or add Year 2 roles, because break-even lands in Month 26.

1Demand Proof440/mo

Verify prebooked volume across primary care, acupuncture, psychotherapy, dietitian, and yoga sessions can reach 440 monthly treatments.

2Fixed Load$599K

Check that the lease and staffing plan can clear the $722K break-even revenue target before you commit to the space.

3Margin Mix83% CM

Keep the blended contribution margin near 83% after supplies, practitioner comp, marketing, and payment fees.

4Utilization50-65%

Confirm rooms and staff can run at 50% to 65% early utilization without bottlenecks or idle payroll.

5Cash Floor$85K

Keep cash above the modeled $85K low point, because the plan reaches that floor around Month 25.

6Setup Reserve$363K

Reserve the full $363K build-out and launch spend so opening costs do not drain cash before bookings mature.