Horticultural Therapy Program Break-Even: $26k Monthly Revenue

Fixed costs $23.8K/mo Launch run rate

Contribution margin 90.5% After direct costs

Break-even revenue $26.3K/mo Monthly target

Break-even timing Month 26 Forecast break point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when this horticultural therapy program breaks even.

Lean Base Full

Monthly revenue Revenue is the pool that covers direct costs first, then fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with program volume, like client supplies and event materials. $ Light costs Heavy costs

Money available to cover fixed costs $52,555 $58,083 revenue - $5,528 variable expenses

Margin ratio

90%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead the program must cover before profit starts. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which horticultural therapy expenses are fixed, and which move with session volume?

Cost classification

Break-even is only reliable if fixed overhead and revenue-linked materials are separated. Here, recurring fixed overhead is $7,300 per month before payroll, while materials and supplies consume 9.5% of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Rent	Fixed	Include $4,200 per month from Month 1 through Month 60 before testing treatment volume.	Reducing rent when first-year capacity is only 65%.
Utilities	Fixed	Treat as $500 per month in the base break-even load.	Making it volume-based without a usage assumption.
Garden Maintenance	Fixed	Carry $900 per month from launch, even before mature utilization.	Treating all garden maintenance as session-driven.
Plants & Seeds	Variable	Apply 3.0% of revenue, so it rises with paid sessions and programs.	Entering it as a flat monthly garden budget.
Pots & Tools	Variable	Apply 2.2% of revenue in the contribution margin calculation.	Mixing reusable equipment with session consumables.
Client Supplies	Variable	Apply 2.5% of revenue as clients and bookings increase.	Forgetting that group volume drives supply spend.
Travel and replacement materials	Semi-variable	Separate any base route or stocking amount from usage tied to off-site sessions.	Putting all replenishment into fixed overhead.
Receptionist and facilities coverage	Semi-fixed	Add support in steps: Receptionist moves from 0.0 FTE in Year 1 to 1.0 FTE in Year 4, while Facilities Manager moves from 0.5 to 1.0 FTE by Year 3.	Hiring full coverage before utilization supports it.

How does break-even shift from a lean pilot to a base and full program mix?

Scenario table

Lean keeps revenue light, so losses linger until the Month 26 break-even point. Base adds therapists and corporate work, which lifts monthly revenue faster than fixed load; full adds the strongest cushion with the highest recurring volume.

Planning assumptions only; actual break-even can move with staffing, pricing, and how full sessions are.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean pilot	$11.1k	$1.1k	$26.4k	90.5%	-$16.3k	Stays loss-making; break-even is still ahead.
Base community program	$58.1k	$5.5k	$39.1k	90.5%	$13.4k	This is the model's Month 26 break-even case.
Full service program	$123.5k	$11.7k	$44.9k	90.5%	$66.8k	Clear cushion; profit expands after break-even.

What breaks the break-even plan if revenue slips or costs creep up?

Stress test

The model clears break-even on paper, but the cushion is still thin before Month 26 and minimum cash dips to about $521k in Month 25. Revenue falls hurt most, and even small fixed or variable cost bumps can erase room fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$442k	$255k cushion	Break-even is covered, but Month 25 still needs about $521k of cash.
Revenue shortfall	Year 3 revenue falls 20% to $558k.	$442k	$116k cushion	A 20% drop cuts about $10.5k of contribution each month.
Fixed-cost pressure	Facility rent rises from $4,200 to $5,200 a month.	$455k	$242k cushion	A $1k monthly rent bump pushes the break-even line higher.
Margin pressure	Plants, seeds, pots, tools, supplies, and event materials rise from 9.5% to 10.5% of revenue.	$447k	$250k cushion	The model already carries 9.5% variable spend, so small leaks matter.
Combined pressure	Revenue falls 20%, rent rises to $5,200, and variable expense rises 1 point.	$460k	$97k cushion	The plan still clears break-even, but the safety band is thin.

What should you verify before you sign the lease and hire ahead for this therapy program?

Founder checklist

Do not lock in the site or add payroll until referral sources, backup space, and therapist coverage can support the Year 1 ramp. The model needs about $521K of cash and reaches break-even in Month 26, so weak demand shows up fast.

1Referral Pipeline65% cap

Confirm referral sources can fill first-year capacity before you count on 165 monthly treatments and early revenue.

2Fixed Load$23.8K/mo

Check the lease and payroll together, because fixed costs run about $23.8K a month before variable client spend.

3Direct Margin90.5% CM

Verify plant, tool, and event spend stays near 9.5% of revenue so contribution can cover the fixed base.

4Therapist Ramp4 to 15

Check therapist availability before scaling from 4 roles in Year 1 to 15 roles in Year 3, or capacity targets slip.

5Cash Cushion$521K min

Hold enough cash to reach the Month 26 break-even point, since the model bottoms near $521K in Month 25.

6Launch FlowMonth 26 BE

Test booking flow and indoor backup space before weather-sensitive sessions, and delay nonessential equipment until demand holds.