Integrative Medicine Clinic Break-Even: $100K Monthly Revenue

Fixed costs $78.4K/mo Overhead plus payroll

Contribution margin 78.5% After variable costs

Break-even revenue $99.8K/mo Monthly target

Break-even timing Month 2 Launch ramp

Break-even calculator

Use this to test whether monthly revenue can cover direct variable costs and the fixed clinic cost base.

Lean Base Full

Monthly revenue Revenue is the pool that has to cover direct costs and overhead. $ Early stage Mature run Variable expenses These are the direct costs that rise with visit volume, supplies, labs, marketing, and billing fees. $ Lower costs Higher costs

Money available to cover fixed costs $271,955 $337,833 revenue - $65,878 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly clinic base that margin has to cover. $ Lean base Heavy base

Break-even chart Revenue Total costs

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

Cost classification

Break-even is only useful if rent, payroll, supplies, lab fees, and processing fees are classified by behavior. If overhead is spread per visit, the clinic can understate the volume needed to cover $56,250 in first-year monthly admin wages.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Rent	Fixed	Include the $12,500 monthly rent in overhead before calculating required treatment volume.	Spreading rent by visit and hiding the true monthly hurdle.
Utilities and High Speed Internet	Semi-variable	Use the $1,800 monthly base, then allow increases as clinic hours and treatment room use rise.	Treating utilities as purely variable with patient visits.
EHR and IT Infrastructure Support	Semi-fixed	Include the $2,200 monthly platform and support charge, with step-ups as provider count grows.	Ignoring tier changes when more clinicians are added.
Malpractice and Liability Insurance	Semi-fixed	Include the $3,500 monthly premium, then review it as licensed provider headcount expands.	Treating coverage as optional or flat at every scale.
Medical and Therapeutic Supplies	Variable	Model as 6.5% of first-year revenue because usage rises with treatments delivered.	Leaving supplies in overhead and overstating contribution margin.
Laboratory and Diagnostic Fees	Variable	Model as 4.0% of first-year revenue and deduct it from treatment economics.	Counting gross lab-related revenue without matching lab fees.
Marketing and Patient Acquisition	Variable	Model as 8.0% of first-year revenue, then track it against booked visits.	Blending launch spend with ongoing patient acquisition.
Administrative Payroll	Semi-fixed	Start with about $56,250 monthly in first-year support wages, then add staff in steps as volume grows.	Hiring ahead of demand and raising break-even too early.

How does break-even change as the clinic moves from lean to full scale?

Scenario table

Higher provider count lifts monthly revenue and spreads fixed overhead across more visits, so the break-even point rises in dollars but gets easier to cover. The lean setup has the thinnest cushion; the full setup has the widest.

Planning assumptions only; actual results will move with payer mix, scheduling, and visit volume.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean clinic, Year 1 scale	$103.9k	$22.3k	$78.4k	78.5%	$3.2k	Revenue is just above the $99.8k break-even mark, so the cushion is thin.
Base clinic, Year 3 scale	$337.8k	$65.9k	$99.0k	80.5%	$172.9k	Revenue is well above the $123.0k break-even mark, so coverage is much safer.
Full clinic, Year 5 scale	$626.4k	$109.6k	$124.7k	82.5%	$392.1k	Revenue sits far above the $151.1k break-even mark, so this is the safest scale in the set.

What breaks the break-even plan for this clinic?

Stress test

Here’s the quick math: Year 1 monthly revenue of about $103,900 only clears break-even by about $4,100. A 10% drop in visits, a 10% jump in payroll or rent, or a 5-point margin hit can push the clinic into monthly loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$99,800	$4,100 cushion	Thin cushion; small misses matter.
Revenue shortfall	Monthly revenue falls 10% to about $93,500.	$99,800	$6,300 gap	Lower visit flow flips the month red.
Fixed-cost pressure	Fixed overhead rises 10% to about $86,200.	$109,800	$5,900 gap	Payroll or rent growth can outrun sales.
Margin pressure	Variable expenses rise 5 points to 26.5%.	$106,600	$2,700 gap	Lab pass-through or card fees erase profit.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise 5 points.	$117,300	$13,400 gap	No-shows, overstaffing, and paid marketing above 8% can drive a monthly loss near $17,500.

What should the founder verify before signing the lease and locking in the clinic build?

Founder checklist

Don’t sign the lease until the clinic can clear the $99.8K monthly break-even target with booked visits, not hoped-for visits. The model hits break-even by Month 2, but only if staffing, cash, equipment, and patient demand ramp on time.

1Lease Load$12.5K/mo

Verify $12,500 rent fits the $99.8K break-even target before you sign, because fixed overhead is hard to unwind once the lease is live.

2Margin Mix78.5%

Verify the service mix leaves 78.5% before fixed costs; Year 1 COGS is 10.5% and variable expense is 11.0%, so pricing has to hold.

3Staffing Ramp7→26 providers

Verify booked demand can support the Year 1 team of 7 providers before you hire toward the Year 5 plan of 26 providers.

4Equipment Phase$95K + $45K

Verify the first service mix justifies the $95,000 diagnostic suite and $45,000 of treatment furniture, or phase the spend instead of tying up cash early.

5Cash Cushion$628K

Verify opening cash can absorb the Month 6 low point at $628,000, because buildout, staffing, and a slow ramp can all hit at once.

6Launch Demand8.0% + $15K

Verify patient demand is real enough to support Year 1 marketing at 8.0% of revenue and the first $15,000 supply buy, with billing, EHR, HIPAA, lab workflow, and provider schedules ready before opening.