Korean Hand Therapy Break-Even Analysis: 278 Monthly Sessions

Fixed costs $21.3K Base monthly overhead

Contribution margin 81% After variable costs

Break-even revenue $26.4K Revenue to cover base

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a Korean hand therapy practice.

Lean Base Full

Monthly revenue Revenue sets the pool that covers direct costs and overhead. $ Lower sales Higher sales Variable expenses These are direct costs that rise as treatment volume grows. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $27,169 $33,750 revenue - $6,581 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even has to cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which hand therapy practice expenses are fixed, and which move with bookings?

Cost classification

Your break-even is only as good as how you tag each bill. Fixed rent sets the monthly hurdle; variable supplies, booking fees, and semi-fixed payroll decide whether added sessions truly improve margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Rent and CAM	Fixed	Use $6,500 per month in the monthly overhead hurdle.	Reducing rent when treatment volume dips.
Utilities and High Speed Internet	Fixed	Use $850 per month unless room usage materially changes.	Treating normal internet and utility bills as per-session spend.
Clinic Maintenance and Cleaning	Fixed	Use $1,200 per month unless cleaning is tied to room turns.	Scaling cleaning perfectly with each booking.
Clinic Supplies and Sanitation Products	Variable	Apply 4.5% of first-year revenue, then update by year.	Forgetting gloves, linens, and sanitation rise with sessions.
Retail Product Inventory Cost	Variable	Apply 3.0% of first-year revenue for inventory tied to sales.	Counting retail purchases as fixed shelf stock.
Digital Marketing and Lead Acquisition	Semi-variable	Model the first-year rate at 8.5% of revenue, with budget controls.	Treating all marketing as fixed, even when lead spend follows demand.
Payment Processing and Booking Fees	Variable	Apply 3.5% of first-year revenue because fees follow paid bookings.	Leaving card and booking fees out of contribution margin.
Clinic Director and Receptionist Coordinator Payroll	Semi-fixed	Model payroll in staffing steps as capacity expands across years.	Treating all payroll as per-session labor.

How does break-even change from a lean launch profile to a full clinic buildout?

Scenario table

Higher utilization and a bigger therapist mix lift monthly revenue faster than fixed costs grow, so the cushion improves as the practice scales. In the base case, the model still points to Month 1 break-even and a 14-month payback.

Planning assumptions only; actual bookings, utilization, and pricing can land above or below these figures.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$34k	$7k	$13k	80.5%	$14k	Positive at launch, but the cushion is tightest here.
Base year-2 case	$69k	$13k	$17k	81.4%	$40k	Model break-even lands in Month 1, with a 14-month payback.
Full year-5 case	$258k	$44k	$26k	82.9%	$187k	Highest cushion; profit expands faster than fixed costs.

What breaks this break-even plan if bookings soften or costs creep up?

Stress test

Base case clears break-even, but the cushion gets thin if bookings fall or if rent, lead costs, and payment fees rise. A 10% revenue drop still works; combined pressure leaves only about $1k of room.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$265k	$72k cushion	Healthy, but the margin is not wide.
Revenue shortfall	Revenue falls 10% from the base case.	$265k	$39k cushion	Bookings can dip and still stay above break-even.
Fixed-cost increase	Fixed costs rise 10% on clinic rent and staffing.	$291k	$46k cushion	Rent creep and payroll growth cut the safety gap.
Margin pressure	Variable expenses rise 3 points, cutting contribution margin to 77.5%.	$275k	$62k cushion	Paid lead costs and payment fees squeeze cash fast.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise 3 points.	$302k	$1k cushion	Almost no room for weak bookings or lower package conversion.

Can this practice clear break-even before you sign the lease and lock the first hires?

Founder checklist

Don’t sign the lease or lock the first hires until 355 monthly treatments, a $95 average price, and $9.85K of non-payroll overhead still work together. If any one of those slips, break-even gets pushed out and cash gets tighter.

1Booked demand355/mo

Confirm the market can fill 355 treatments a month, because that is the volume the plan needs before full overhead is safe.

2Overhead base$9.85K/mo

Keep rent, utilities, insurance, software, cleaning, and admin at $9,850 a month so fixed costs do not outrun early cash flow.

3Treatment margin80.5% CM

Hold the first-year mix near a $95 average price and 19.5% variable cost, or each visit contributes less than the model needs.

4Staffing ramp355/mo

Verify the Year 1 team can deliver 355 monthly treatments without adding headcount ahead of utilization or the $95K director and $42K coordinator load will drag break-even.

5Cash cushion$858K min

Keep the $858K minimum cash need in view, since launch capex totals $142.5K and a slow start still has to be funded.

6Launch flowPre-open

Test booking, intake, cancellation, payment, and insurance before paid sessions so no-shows and collection gaps do not hit the first months.