Medical Tourism Break-Even Analysis: About $75K/Month

Fixed costs $30.4K/mo Core monthly base

Contribution margin 85% After direct costs

Break-even revenue $35.8K/mo Revenue floor

Break-even timing Month 1 Launch month

Break-even calculator

Test whether monthly revenue covers variable expenses and the fixed cost base before you scale.

Lean Base Full

Monthly revenue Revenue is the cash input that sets the margin available for fixed costs. $ Low load High load Variable expenses These are the direct costs that rise as each case or booking grows. $ Tight costs Heavy costs

Money available to cover fixed costs $89,000 $134,000 revenue - $45,000 variable expenses

Margin ratio

66%

Covers fixed costs

Yes

Fixed monthly costs This is the overhead base the margin has to cover each month. $ Lean base Big base

Break-even chart Revenue Total costs

Which expenses are fixed and which move with sales in this medical travel business?

Cost classification

Break-even gets shaky when fixed payroll, compliance, and rent are treated like optional spend. In Month 1, fixed overhead starts before volume proves out, while payment fees and patient ads rise with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $3,500 per month from Month 1 through Month 60.	Dropping rent until bookings ramp.
Legal & Compliance Retainer	Fixed	Include $2,000 per month as baseline overhead.	Treating compliance as a one-time setup item.
Software Licenses	Semi-fixed	Start with $800 per month, then step up as seats and systems expand.	Modeling tools as fully variable with each order.
CEO and Head of Platform & Tech	Fixed	Include $150,000 and $130,000 annual salaries at 1.0 FTE each.	Excluding founder-level payroll from operating break-even.
Marketing Manager	Semi-variable	Include $85,000 annual salary at 0.5 FTE in the first year, then 1.0 FTE.	Forgetting the half-year hire still hits first-year overhead.
Concierge Specialist	Semi-variable	Scale $55,000 annual salary from 0.5 FTE in Year 2 to 2.0 FTE in Year 5.	Holding support labor flat while patient volume grows.
Payment Processing Fees	Variable	Apply 2.5% of revenue in the first year, falling to 2.1% by Year 5.	Using gross revenue without deducting processing drag.
Digital Advertising (Patient Acquisition)	Variable	Apply 8.0% of revenue in the first year, falling to 6.0% by Year 5.	Calling acquisition spend optional when first-year buyer marketing is $200,000 and seller marketing is $150,000.

How does break-even change from lean validation to base growth and full scale in medical tourism?

Scenario table

Lean stays close to break-even with tight spend. Base adds buyer acquisition and still keeps a cushion, while full scale improves profit only if CAC and payroll stay near plan.

Directional planning cases only; actual bookings, costs, and margins can move fast.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean founder-led validation	$34.5k	$5.2k	$29.0k	85.0%	$0.3k	Near break-even; one small cost swing matters.
Base Year 1 acquisition plan	$84.6k	$12.7k	$53.3k	85.0%	$18.7k	Positive cushion, but acquisition spend still sets the pace.
Full Year 2 scale plan	$208.1k	$29.3k	$88.3k	85.9%	$90.4k	Scale improves cushion, but margin control still matters.

What breaks the break-even plan if bookings slip or costs rise?

Stress test

The base plan clears break-even, but the cushion shrinks fast if bookings slip, overhead rises, or variable costs move from 15% to 20%. In the combined case, the month turns into a loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; revenue stays at $1,015,000 and variable expenses stay at 15%.	$751,765	$224,000 cushion	Buyer CAC above $400 is the first warning sign.
Revenue shortfall	Monthly commission revenue falls 20% to $812,000.	$751,765	$51,000 cushion	Fewer than 31 bookings/month would tighten cash fast.
Fixed-cost pressure	Fixed overhead rises 10% to $703,000.	$826,471	$160,000 cushion	More staffing or compliance spend lifts the floor.
Margin pressure	Variable expenses rise from 15% to 20% of revenue.	$798,750	$173,000 cushion	Ad cost inflation and refunds squeeze the take rate.
Combined pressure	Revenue falls 20%, variable expenses rise to 20%, and fixed overhead rises 10%.	$878,750	$53,000 gap	Weak demand and higher CAC can turn the month red.

What should a medical tourism founder verify before locking in fixed spend?

Founder checklist

Don’t sign the lease, build, or hire until the booking flow, CAC, and fixed load all clear break-even math. In this model, the first test is whether 31 bookings a month can carry the case without draining cash.

1Booking flow31/mo

Verify you can book about 31 cases a month at buyer CAC near $400 and seller CAC near $2,500, or the model will not hold.

2Fixed load$34.8K/mo

Check the full monthly fixed load, including $3,500 rent and the planned team, before you lock office space.

3Take rate12.0%

Test whether the 12% commission and seller fees can cover 2.5% to 2.1% payment processing, 1.5% to 1.1% hosting, and patient ads.

4Supply mix40/45/15

Keep Year 1 supply near 40% hospitals, 45% specialty clinics, and 15% wellness centers, and map intake, quote review, and handoff before the platform build.

5Hiring rampMonth 13

Wait for workload before adding support, provider relations, concierge, and admin, because the model does not need those roles on day one.

6Cash reserve$845K

Hold enough cash for the Month 2 low point, and budget the $2,000 monthly legal retainer plus $7,000 security tools before launch.