Home Infusion Therapy Break-Even Revenue Is About $73K Per Month

Fixed costs $57.9K/mo Launch-month base

Contribution margin 79% After variable costs

Break-even revenue $73.2K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, direct costs, and fixed overhead to see where this home infusion therapy service breaks even.

Lean Base Full

Monthly revenue Use this as the top line that funds fixed overhead after direct costs. $ Lower volume Higher volume Variable expenses Enter direct care, supply, travel, and billing costs that rise with volume. $ Lean costs Rising costs

Money available to cover fixed costs $371,850 $455,583 revenue - $83,733 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs Enter monthly overhead the margin must cover before profit starts. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which home infusion therapy expenses are fixed, and which move with treatment volume?

Cost classification

Break-even is reliable only when visit-linked items move with treatment volume and true overhead stays fixed. Here’s the quick math: Year 1 variable items total 21.0% of revenue, before staffing step-ups.

Expense	Cost	Break-Even Treatment	Common Mistake
Medical Consumables and IV Kits	Variable	Model at 8.5% of Year 1 revenue, falling to 7.4% by mature year.	Treating per-visit supplies as fixed overhead.
Specialty Pharmacy Procurement Fees	Variable	Model at 4.5% of Year 1 revenue, falling to 3.7% by mature year.	Ignoring revenue-linked procurement fees in gross margin.
Nurse Travel and Mileage Reimbursement	Variable	Model at 5.0% of Year 1 revenue, tied to patient visits and routing density.	Holding mileage flat while treatment volume rises.
Billing and Claims Processing Fees	Variable	Model at 3.0% of Year 1 revenue because claims activity follows billed treatments.	Classifying claims fees as back-office fixed overhead.
Medical Office and Storage Rent	Fixed	Use $6,500 per month across the relevant monthly planning range.	Spreading rent per treatment and calling it variable.
Malpractice and Professional Liability Insurance	Fixed	Use $4,200 per month unless coverage terms change.	Reducing insurance when monthly treatments dip.
Patient Care Coordinator	Semi-fixed	Add capacity in steps: 2.0 FTE in Year 1, rising to 6.0 FTE by Year 5.	Scaling coordinator payroll one-for-one with revenue.
Operations Manager	Semi-fixed	Hold at 1.0 FTE through Year 3, then step to 1.5 FTE and 2.0 FTE.	Missing staffing jumps when the operation outgrows one manager.

How does break-even change as this home infusion service moves from lean to base to full scale?

Scenario table

Break-even gets easier as monthly revenue rises faster than fixed staff and overhead. Year 1 proves referral flow, Year 2 tests staffing scale, and Year 3 gives the widest cushion.

Planning assumptions only; actual break-even will move with payer mix, staffing, and treatment mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean home infusion launch	$455.6k	$95.7k	$57.9k	79.0%	$302.0k	Covers fixed costs and leaves a modest cushion.
Base home infusion scale-up	$826.1k	$166.0k	$65.4k	79.9%	$594.7k	Strong overhead absorption, so staffing discipline matters.
Full home infusion multi-team build	$1.48m	$283.6k	$77.6k	80.8%	$1.12m	Wide cushion, but billing and dispatch execution are key.

What could push the home infusion break-even plan off track?

Stress test

The plan has a wide break-even cushion, but slower referrals, higher travel and supply use, and fixed-cost creep can compress it fast. Month 1 cash is still tight at $905k, so timing of collections matters.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$732k	$3,824k cushion	The opening plan clears break-even by a wide margin.
Revenue shortfall	Revenue falls 20% to about $3,645k.	$732k	$2,913k cushion	Slower referrals still leave profit, but collections timing gets tighter.
Fixed-cost increase	Fixed costs rise 15% to about $6,653k.	$844k	$3,712k cushion	Rent, insurance, or compliance creep raises the hurdle.
Margin pressure	Variable expenses rise to 260% of revenue.	$782k	$3,774k cushion	Longer routes, supply waste, and billing rework squeeze contribution.
Combined pressure	Revenue falls 20%, variable expenses rise to 260%, and fixed costs rise 15%.	$899k	$2,746k cushion	Still above break-even, but Month 1 cash risk stays the key watchout.

What should the founder verify before locking the first lease, nurse hires, and equipment for a home infusion therapy service?

Founder checklist

Don’t lock in fixed spend until referrals can support the model’s $732K monthly break-even revenue and you still have the $905K Month 1 cash cushion. In Year 1, the math only works if demand, staffing, and reimbursement are already lined up.

1Break-even demand$732K/mo

Verify referrals can build to the $732K monthly break-even target, because Year 1 revenue only models at $455.6K a month.

2Fixed overhead$18.1K/mo

Confirm rent, insurance, software, marketing, audits, and dispatch total $18.1K a month before you sign anything, because these costs start on day one.

3Contribution margin79% CM

Check that consumables, pharmacy fees, travel, and claims processing still leave about 79% contribution margin, because that margin has to cover payroll and overhead.

4Clinical roster29 roles

Verify the Year 1 roster covers 29 nurse roles across infusion, oncology, pediatric, chronic care, and wound care, with capacity rising from 45% to 85% by line.

5Cash cushion$905K

Hold the $905K Month 1 cash need before launch, because capex and payroll land before reimbursement cash starts to flow.

6Launch setup$240K capex

Hold the $240K startup equipment and setup spend until payer enrollment, HIPAA-compliant workflow, medication handling, dispatch coverage, and claims ownership are mapped.