House Call Doctor Break-Even Analysis: $125K Monthly Revenue

Fixed costs $100.1K/mo Base overhead

Contribution margin 95% After variable costs

Break-even revenue $105.7K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to see whether monthly revenue can cover variable costs and fixed overhead for a physician home-visit practice.

Lean Base Full

Monthly revenue Revenue is the pool that pays direct costs and fixed overhead. $ Low revenue High revenue Variable expenses These are costs that rise with each visit. $ Low direct cost High direct cost

Money available to cover fixed costs $607,734 $759,667 revenue - $151,933 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even must cover. $ Low fixed cost High fixed cost

Break-even chart Revenue Total costs

Which house call doctor expenses stay fixed, and which move with visit volume?

Cost classification

Break-even is reliable only when stable overhead stays separate from visit-driven spending. Here, fixed monthly overhead sets the floor, while supplies, lab fees, travel, claims fees, and staffing steps change the margin per house call.

Expense	Cost	Break-Even Treatment	Common Mistake
Administrative Hub Rent	Fixed	Include the $6,500 monthly rent in fixed overhead before calculating required visits.	Allocating rent per visit and making break-even look better at low volume.
Malpractice Insurance Premium	Fixed	Include the $12,000 monthly premium in baseline overhead for every planning month.	Treating required insurance as optional or tying it to visit count.
Medical Supplies and Disposables	Variable	Subtract the first-year 4.5% of revenue from each visit before contribution margin.	Putting supplies in overhead instead of reducing margin on every house call.
Laboratory and Diagnostic Fees	Variable	Model the first-year 5.5% of revenue as visit-driven expense in contribution margin.	Ignoring lab pass-through pressure when visit mix includes more diagnostics.
Fuel and Vehicle Maintenance	Variable	Apply the first-year 6.0% of revenue against visit margin because travel rises with house calls.	Treating travel as overhead and overstating profit per completed visit.
Billing and Claims Processing Fees	Variable	Deduct the first-year 4.0% of revenue as claims activity grows with visits billed.	Forgetting that more paid visits also means more billing fees.
Patient Coordinator Payroll	Semi-fixed	Add payroll step-ups before capacity gets tight: 2.0 FTE in year one, rising to 8.0 FTE by year five.	Holding coordinator staffing flat while provider count and patient volume scale.
Clinician Time Tied to Visit Volume	Semi-variable	Model a base clinical staffing plan, then flex visit capacity as General Physicians, Nurse Practitioners, specialists, and care managers scale.	Counting all clinician capacity as fixed even when visits, utilization, and staffing rise together.

How does break-even change as this house call doctor service moves from lean to base to full staffing?

Scenario table

Here’s the quick math: lean clears break-even with a thin cushion, base gives the healthiest margin, and full only works if added staff stay busy. EBITDA climbs from $867K in Year 1 to $6.0M in Year 3 and $17.7M in Year 5.

Planning-case figures only; actual results will move with visit density, reimbursement timing, and staffing mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean first-year staffing	$182K	$36K	$100K	80%	$45K	Clears break-even, but the cushion is thin.
Base mid-scale staffing	$760K	$137K	$134K	82%	$489K	Best operating cushion here, with room for slower weeks.
Full scaled staffing	$2,018K	$323K	$179K	84%	$1,516K	Strongest profit, but only if demand keeps pace with staffing.

How much demand softness or cost pressure can this house call doctor service take before break-even slips?

Stress test

The base plan covers overhead at about $1,819K of monthly revenue, 80% contribution margin, and $1,001K fixed overhead. A 15% revenue drop still leaves cushion, but higher fixed costs or margin loss can narrow it fast, and the combined case leaves only about $8K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,251K	$454K cushion	Healthy base cushion, but route density still matters.
Revenue shortfall	Revenue drops 15% while variable load stays at 20%.	$1,251K	$236K cushion	Weak demand cuts room fast, so volume softness is a real risk.
Fixed-cost pressure	Fixed overhead rises 15% from $1,001K to $1,151K.	$1,439K	$304K cushion	Higher malpractice or staffing cost pushes break-even up.
Margin pressure	Variable load rises from 20% to 25%.	$1,335K	$363K cushion	Longer drive times and claims friction eat contribution.
Combined pressure	Revenue drops 15%, variable load rises to 25%, and fixed overhead rises 15%.	$1,535K	$8K cushion	This leaves almost no room for hiring before volume is proven.

What should you verify before you lock in leases, payroll, vehicles, and marketing spend for a house call doctor service?

Founder checklist

Use this checklist before you lock in leases, payroll, vehicles, or marketing spend. Break-even only holds if dense visits, pricing near $199 AOV, and the $832K cash cushion all line up before the launch month.

1Route density$199 AOV

Make sure one service area can carry enough visits to justify each vehicle, and keep the first-year visit price near the $199 average order value or the route math gets thin fast.

2Fixed load$100.1K/mo

Add up rent, software, malpractice, outreach, IT, licensing, vehicle lease, and payroll, and you get about $100.1K a month before supplies or travel, so don't scale overhead faster than route volume.

3Contribution margin90% CM

At about $199 per visit and roughly $20 of Year 1 variable cost, you keep about 90% contribution margin, which is what's left after variable costs, but claims lag or a weak billing workflow can still strain cash.

4Launch stackMonth 1

Lock malpractice coverage and test call handling, dispatch, supplies, lab workflows, portable diagnostics, refrigeration, and secure data systems by Month 1, because marketing only pays off when a booked visit can be completed the same day.

5Coverage ramp11 clinicians

Year 1 staffing forecasts call for 11 clinicians across general physician, nurse practitioner, geriatric, chronic care, and post-op roles, so verify that mix before you hire ahead of route demand.

6Cash cushion$832K

Hold at least the $832K minimum cash the model flags in Month 2, then watch whether payback still lands within the six-month target before you open a wider service area.