Montessori School Break-Even Analysis: About $67K Monthly Revenue

Fixed costs $20.2K/mo Lease and overhead

Contribution margin 83.5% After variable costs

Break-even revenue $24.1K/mo Monthly target

Break-even timing Month 2 Early ramp

Break-even calculator

Test monthly tuition revenue, variable costs, and fixed overhead against break-even for a Montessori school.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month before direct costs and overhead. $ Lower revenue Higher revenue Variable expenses These are direct costs that rise with enrollment and tuition activity. $ Lower costs Higher costs

Money available to cover fixed costs $180,171 $203,583 revenue - $23,412 variable expenses

Margin ratio

89%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which school expenses stay fixed, and which move with enrollment?

Cost classification

Break-even is only useful if rent, payroll, and enrollment-driven costs sit in the right buckets. Misclassifying payroll or student supplies can make Month 2 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease	Fixed	Use $14,500 per month as fixed overhead from Month 1 through Month 60.	Spreading rent per student and letting it fall when occupancy rises.
Utilities and Internet	Semi-variable	Start with the $1,800 monthly base, then allow usage to rise as classrooms fill.	Treating utilities as fully fixed while occupancy moves from 65% to 95%.
Janitorial and Maintenance	Semi-variable	Model the $2,200 monthly base, with added pressure as daily student use increases.	Ignoring heavier cleaning needs as enrollment and billable days drive traffic.
School Management Software	Fixed	Use $450 per month as recurring overhead for the planning range.	Scaling software directly with tuition revenue without a stated usage fee.
General Liability Insurance	Fixed	Use $850 per month as fixed operating overhead.	Moving it with each enrolled student instead of keeping the monthly policy charge stable.
Head of School, Guides, Assistants, and Administrative Assistant Payroll	Semi-fixed	Step payroll up when classroom scale changes, such as added guide or assistant FTEs.	Modeling all wages as variable per student instead of staffing by classroom capacity.
Classroom Materials and Snacks	Variable	Apply the Year 1 rate of 5.0% of revenue, falling to 4.0% by the stabilized period.	Budgeting one flat monthly amount even as tuition revenue and enrollment grow.
Marketing and Community Outreach	Semi-variable	Use 6.0% of revenue in the first year, tapering to 2.5% by Year 5.	Keeping launch-level marketing intensity after occupancy nears 95%.

How does break-even change from a lean launch to full enrollment?

Scenario table

Break-even shifts fast as tuition scales and fixed payroll stays in place. The school is near the line in launch, then builds a much wider cushion as occupancy moves into the base and full cases.

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

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$94.3K	$15.6K	$55.9K	83.5%	$22.8K	Revenue clears the break-even line, but the cushion is still tight.
Base scaling case	$203.6K	$23.4K	$72.2K	88.5%	$107.9K	Enrollment covers the heavier staff load and leaves a much safer cushion.
Full enrollment case	$253.7K	$24.1K	$75.4K	90.5%	$154.2K	At full rooms, break-even risk is low and pricing power matters more.

What breaks the Montessori school break-even plan?

Stress test

The plan clears break-even at the current opening mix, but it’s fragile if seats slip or staff costs rise. Here’s the quick math: monthly revenue is about $94.3K versus a $66.9K break-even, so the cushion can disappear fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$66,900	$27,300 cushion	The plan clears break-even, but the cushion is only moderate.
Revenue slip	Opening-year occupancy falls from 65.0% to 45.0%.	$66,900	$1,700 gap	The school slips below break-even at about 35 students.
Rent jump	Facility lease rises 20% to $17,400 per month.	$70,400	$23,800 cushion	Higher rent eats into the monthly cushion.
Margin squeeze	Marketing and Community Outreach rises from 6.0% to 9.0% of revenue.	$69,400	$24,800 cushion	Higher acquisition spend lowers contribution margin.
Combined squeeze	Occupancy falls to 45.0% and marketing rises to 9.0% of revenue.	$69,400	$4,200 gap	Lower enrollment and higher spend turn the month negative.

What should you verify before signing the lease and hiring the first guides?

Founder checklist

Do the break-even math before you lock in the lease, materials, and staff. This school needs at least 35 enrolled students to clear break-even and about 49 students in Year 1 to match the occupancy target.

1Demand floor35+ students

Verify at least 35 enrolled students before you commit, because that is the first break-even test.

2Lease load$20.15K/mo

Check that the $14,500 facility lease fits inside the $20.15K monthly fixed load before payroll and variable spend.

3Unit margin83.5% CM

Test scholarship discounts against the 83.5% Year 1 contribution margin, or tuition cuts can eat the room needed for break-even.

4Payroll ramp$429K/yr

Verify the opening roster can support the 75-seat Year 1 plan, because the five salaried roles already total about $429K a year.

5Cash floor$795K

Hold enough cash for the Month 2 minimum cash need of $795K, because setup spending peaks before enrollment is fully in place.

6Launch plan$250.5K

Secure deposits toward the Year 1 plan of about 49 students before you commit the $250.5K setup capex or open the doors, and confirm licensing and insurance timing before launch.