Jiu-Jitsu Academy Break-Even: $248K Monthly Revenue Target

Fixed costs $21.1K Launch overhead

Contribution margin 85% After variable costs

Break-even revenue $24.8K Monthly target

Break-even timing Month 1 First profit month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where a Jiu-Jitsu academy crosses break-even.

Lean Base Full

Monthly revenue Use the gross monthly take before direct costs. $ Low sales High sales Variable expenses Use costs that rise as sales rise, like marketing and payment fees. $ Low costs High costs

Money available to cover fixed costs $32,224 $34,950 revenue - $2,726 variable expenses

Margin ratio

92%

Covers fixed costs

Yes

Fixed monthly costs Use the monthly overhead you pay even when sales stay flat. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which Jiu-Jitsu Academy expenses are fixed, semi-fixed, semi-variable, or tied to sales?

Cost classification

Break-even only works if rent, payroll, insurance, merchandise, and payment fees sit in the right buckets. Mix them up, and Month 1 profitability can look cleaner than cash reality.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Rent	Fixed	Include the $4,000 monthly rent in overhead from Month 1, regardless of student count.	Tying rent to membership growth instead of treating it as a floor the academy must cover.
Property Insurance and Liability Insurance	Fixed	Include $800 per month from launch month: $300 for property insurance plus $500 for liability insurance.	Skipping waiver-related coverage planning because classes are still ramping.
Head Instructor Owner	Fixed	Include the $70,000 annual salary before calling the academy profitable.	Leaving owner pay out and overstating true operating profit.
Assistant Instructor Payroll	Semi-fixed	Model in staffing steps as full-time equivalent headcount rises from 1.0 in the first year to 2.5 by the mature year.	Treating instructor labor as if it moves penny-for-penny with each new student.
Utilities and Cleaning Services	Semi-variable	Start with $1,400 per month, then review usage as class volume, mat time, and showers increase.	Keeping utilities and cleaning flat after occupancy rises from 45.0% to 90.0%.
Merchandise Cost	Variable	Apply the first-year 3.0% rate to revenue tied to merchandise sales activity.	Forecasting merchandise sales without the related product expense.
Marketing Advertising	Variable	Apply the first-year 8.0% rate to revenue and keep launch acquisition visible in break-even math.	Burying member acquisition spend inside general overhead.
Payment Processing Fees	Variable	Apply the first-year 2.0% rate to collected revenue from memberships, private training, and merchandise.	Calculating break-even on gross revenue before card and payment fees.

How does break-even change across lean, base, and full academy formats?

Scenario table

Lean stays below break-even, base clears it, and full format builds the widest cushion. Class load, payroll, and space use are the main swing factors.

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

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean shared-schedule academy	$16.0K	$2.4K	$17.6K	84.9%	-$4.0K	Below break-even, so this setup needs more enrollment or lower payroll.
Base leased academy	$32.1K	$3.9K	$19.8K	87.8%	$8.3K	Above break-even with a solid cushion and stable monthly profit.
Full multi-instructor academy	$51.6K	$5.3K	$24.8K	89.7%	$21.5K	Well above break-even, with room for more instructor coverage.

What breaks the break-even plan for a Jiu-Jitsu Academy?

Stress test

Year 3 still covers break-even, but the cushion gets thin fast if classes go unfilled or renewals slow. A 10% revenue drop or a 10% overhead bump cuts room quickly, and combined pressure can turn the month negative.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$280K	$105K cushion	Healthy, but underfilled kids classes can shrink the cushion fast.
Revenue shortfall	Revenue falls 10% to about $346K.	$280K	$66K cushion	Still above break-even, but slower renewals cut the buffer.
Fixed-cost pressure	Fixed costs rise 10% to about $262K.	$298K	$87K cushion	A rent reset or extra payroll lifts break-even quickly.
Margin pressure	Variable expenses rise 5 points to about 171%.	$287K	$98K cushion	More instructor coverage or higher fees compress the margin.
Combined pressure	Revenue falls 25%, fixed costs rise 10%, and variable expenses rise 5 points.	$311K	$23K gap	Underfilled classes and weaker private training can push the month into loss.

Can this jiu-jitsu academy clear break-even before you sign the lease and hire the team?

Founder checklist

Before you sign the lease or hire staff, test the academy against the $248K monthly break-even target. The first-year plan only works if demand, pricing, space, payroll, and cash all clear the numbers before opening month.

1Demand proof127 members

Verify you can sell at least 127 equivalent first-year members at about $196 per member with merchandise included, because that is the demand level the model needs before break-even looks real.

2Price test$130-$450/mo

Test the four monthly price points now: $130 kids, $160 adult fundamentals, $190 advanced unlimited, and $450 private training, so you know the mix supports revenue per member.

3Margin load85% CM

Check that the 15% variable cost stack leaves an 85% contribution margin, then compare it with about $21.1K of monthly fixed load from rent, utilities, insurance, admin, and base payroll.

4Capacity fit98 seats

Confirm parking, mat space, and class times can handle 30 kids, 40 adult fundamentals, 20 advanced members, and 8 private clients in Year 1, or sales will hit a space bottleneck.

5Launch capex$64.5K

Budget the full build-out for mats, locker rooms and showers, reception furniture, AV, gear inventory, security, website, and signage before you rely on monthly cash flow.

6Cash reserve$899K

Keep the minimum cash cushion in place before opening, because the model’s minimum cash is $899K and the first month is the tightest point.