Medical Clinic Break-Even Analysis: $101k Monthly Revenue Target

Fixed costs $19.6K/mo Base overhead

Contribution margin 85% After variable costs

Break-even revenue $23.1K/mo Revenue target

Break-even timing Month 26 Model break-even

Break-even calculator

Use this to test whether monthly patient revenue covers variable costs and the fixed clinic cost base.

Lean Base Full

Monthly revenue Revenue is the cash coming in before variable costs and fixed overhead. $ Low revenue High revenue Variable expenses Use costs that rise with visits, supplies, lab work, billing, and marketing. $ Low cost High cost

Money available to cover fixed costs $78,710 $92,600 revenue - $13,890 variable expenses

Margin ratio

85%

Covers fixed costs

$7,140 short

Fixed monthly costs This is the monthly clinic cost base the contribution margin has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even gets unreliable when visit-level costs are treated like overhead, or payroll step-ups are ignored. Here’s the quick math: fixed costs set the monthly hurdle, while variable rates reduce contribution on each patient visit.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Rent	Fixed	Use $10,000 per month from Month 1 through Month 60.	Spreading rent per visit and hiding the true monthly hurdle.
Malpractice Insurance	Fixed	Use $3,000 per month as recurring overhead in the break-even base.	Treating insurance as visit-linked instead of required coverage.
EHR Software Subscription	Fixed	Use $2,000 per month as a stable operating platform expense.	Excluding software because it is not tied to patient visits.
Medical Supplies Consumed	Variable	Model as 5.0% of revenue in the first year, falling to 4.0% by year five.	Treating gloves, disposables, and visit supplies like general overhead.
External Lab Fees	Variable	Model as 3.0% of revenue in the first year, falling to 2.5% by year five.	Forgetting lab fees reduce contribution on applicable patient revenue.
Billing & Collections Fees	Variable	Model as 4.0% of revenue in the first year, falling to 3.5% by year five.	Using gross revenue for break-even without collection friction.
Utilities	Semi-variable	Start with the $1,500 monthly base, then review usage as visits and hours rise.	Assuming utilities stay flat when patient flow and exam room use increase.
Clinical and Front-Office Staffing	Semi-fixed	Add payroll in blocks as FTEs rise for physicians, nurse practitioners, medical assistants, reception, billing, and phlebotomy.	Ignoring payroll step-ups when capacity expands before revenue catches up.

How do lean, base, and full clinic launches change break-even risk?

Scenario table

Break-even lands in Month 26, but the cushion depends on how fast revenue outruns staffing and overhead. Lean stays under water, base sits right on the edge, and full starts to build a real profit buffer.

These scenario figures are planning assumptions, not guarantees, and real clinic results can move with payer mix, staffing pace, and visit demand.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$75,790	$11,369	$85,850	85.0%	-$21,429	High launch risk; this case stays well below break-even.
Base ramp	$135,338	$19,340	$117,517	85.7%	-$1,519	Nearly break-even, so small misses can turn profit to loss.
Full capacity	$230,366	$31,100	$150,850	86.5%	$48,416	Healthy cushion; this case supports expansion beyond break-even.

What pushes the clinic’s break-even point out of reach?

Stress test

The clinic’s base break-even point is about $101,000 a month. A 10% revenue dip, 10% higher fixed costs, or a 5-point margin squeeze each push it farther out; stacked together, the monthly loss can reach about $39,866.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$101,000	$25,210 gap	First-year revenue still trails break-even.
Revenue shortfall	First-year revenue falls 10% to $68,211.	$101,000	$32,789 gap	Slower patient ramp widens the monthly loss.
Fixed-cost pressure	Fixed overhead and payroll rise 10% to $94,435 a month.	$111,100	$35,310 gap	More rent, payroll, or admin spend pushes breakeven out.
Margin pressure	Variable expenses rise from 15% to 20% of revenue.	$118,044	$42,254 gap	Higher billing, collections, or supply costs squeeze margin.
Combined pressure	Revenue falls to $68,211, variable expenses rise to 20%, and fixed costs rise to $94,435 a month.	$118,044	$49,833 gap	Weak ramp plus cost creep can turn cash burn sharp.

What should a medical clinic founder verify before signing the lease and funding the launch?

Founder checklist

Don’t sign the lease until first-year demand can support $75,790 a month against a $101,000 break-even target. Also fund the Month 25 cash trough of -$244,000, because the clinic still needs runway before breakeven in Month 26.

1Demand Proof$75.8K/mo

Verify booked visits can support first-year revenue at this level before you lock in fixed costs, or the $101,000 break-even target stays out of reach.

2Lease Load$19.6K/mo

Check that rent and core clinic overhead can be carried from Month 1, because the fixed base starts running before patient volume does.

3Margin Mix85%

Confirm Year 1 direct and variable costs stay near 15% total, so contribution margin is still strong enough to cover fixed expenses.

4Staffing Ramp2-1-2-1-1

Verify the first-year team of 2 physicians, 1 nurse practitioner, 2 medical assistants, 1 specialist, and 1 phlebotomist matches demand, then delay step-ups if volume lags.

5Cash Gap-$244K

Fund the Month 25 low point, because the model does not reach breakeven until Month 26 and the clinic needs cash before that turn.

6Launch Spend$385K

Pressure-test the $150,000 diagnostic equipment, $100,000 leasehold improvements, $75,000 exam room furnishings, and $60,000 EHR setup before you spend.