Mortuary Science School Break-Even: $63K/Month By Month 14

Fixed costs $51.4K/mo Base overhead

Contribution margin 81% After variable costs

Break-even revenue $63.4K/mo Monthly target

Break-even timing Month 14 Modeled crossover

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed monthly costs against break-even.

Lean Base Full

Monthly revenue Revenue sets how much margin is available to cover fixed costs. $ Lower intake Higher intake Variable expenses Direct costs like lab supplies, recruitment, and outreach rise with sales. $ Lower cost Higher cost

Money available to cover fixed costs $151,431 $176,083 revenue - $24,652 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This covers rent, payroll, compliance, insurance, software, and campus overhead. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which mortuary science school expenses are fixed, and which move with enrollment?

Cost classification

If you classify costs wrong, the Month 14 break-even target can look safer than it is. The key is separating stable overhead from costs that rise with students, lab use, and added teaching capacity.

Expense	Cost	Break-Even Treatment	Common Mistake
Specialized Facility Lease	Fixed	Include $12,000 per month in baseline overhead before calculating needed tuition volume.	Treating the lease as flexible when occupancy starts at 45%.
Campus Utilities and Security	Semi-fixed	Start with $3,200 per month, then step it up when lab hours, evening cohorts, or campus coverage expand.	Ignoring added utility and security needs as cohorts run longer hours.
Mortuary Chemicals and PPE	Variable	Model at 6.0% of first-year revenue because usage rises with lab enrollment and tuition activity.	Spreading it evenly across all students instead of lab-heavy programs.
Instructional Manuals and Licensing Prep	Variable	Model at 3.0% of first-year revenue and match it to enrolled student tuition timing.	Booking materials too early, before the related tuition is earned.
Lead Embalming Instructor	Semi-fixed	Start with the $85,000 annual salary, then step up staffing when full-time equivalents double by Year 3.	Treating faculty as fully fixed even when capacity requires another instructor.
Accreditation and Regulatory Fees	Fixed	Include $1,800 per month as required overhead in the break-even base.	Leaving compliance outside break-even because it does not vary by student.

How does break-even shift from a lean opening year to a full mature year?

Scenario table

Lean Year 1 sits below break-even because 45% occupancy leaves too little revenue against a fixed campus and staff base. By Year 2 and Year 5, higher occupancy and tuition lift the contribution margin, so fixed-cost coverage improves fast.

All dollar figures are monthly equivalents from the model; they show fixed-cost coverage, not guaranteed profit.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean opening year	$49.3k	$9.4k	$56.0k	81%	-$16.1k	Below break-even; the monthly revenue gap is still about $19.8k.
Base growth year	$105.9k	$17.5k	$67.1k	83.5%	$21.3k	Above break-even with a modest cushion of about $25.5k each month.
Full mature year	$228.6k	$29.7k	$94.9k	87%	$103.9k	Strong cushion; fixed staff and facility costs are covered well past break-even.

What breaks the break-even cushion for a mortuary science training school?

Stress test

Contribution margin, the share left after variable costs, is the key buffer here. A 20% enrollment miss, a 15% overhead jump, or a five-point margin drop can narrow it fast, and the combined hit creates a $23K monthly gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the Year 2 base case.	$717K	$286K cushion	The buffer is healthy, but occupancy still matters.
Revenue shortfall	Tuition collection falls 20% from the Year 2 base case.	$717K	$108K cushion	Weak cohort fill leaves little room before fixed cost bites.
Fixed-cost increase	Facility and faculty overhead rise 15%.	$824K	$197K cushion	Earlier hiring and higher overhead squeeze the buffer.
Margin pressure	Variable expense rates rise five points.	$763K	$233K cushion	Higher lab supply pricing cuts the spread fast.
Combined pressure	Revenue falls 20%, fixed costs rise 15%, and variable expenses rise five points.	$870K	$23K gap	The month flips negative if enrollment and costs both miss.

Can you cover the lease and first cohort ramp before opening a mortuary science training school?

Founder checklist

Don’t sign the big lease until the student pipeline can support about $63.4K a month in break-even revenue, Year 1 occupancy reaches 45%, and cash still holds near the $570K low point in Month 13. Year 1 stays underwater at -$193K EBITDA, so the first cohort has to land on time.

1Revenue Floor$63.4K/mo

Verify the funnel can clear this monthly revenue floor after Year 1 pricing and fees, or the school will miss break-even.

2Fixed Load$51.4K/mo

Check that rent, utilities, insurance, software, and payroll stay inside this base load before you lock the facility.

3Margin Mix81% CM

Confirm chemicals, PPE, manuals, recruitment, and travel stay near the modeled 19% cost share so each student contributes enough cash.

4Faculty Ramp1.0→2.0 FTE

Hire embalming and funeral arts staff in stages tied to cohort fill so payroll does not outrun enrollment.

5Cash Cushion$570K

Keep at least this reserve through Month 13, because Year 1 EBITDA is -$193K before the model turns positive.

6Tuition RulesBefore admissions

Set tuition collection and deposit rules before marketing starts, so the $198K equipment build and early operating losses do not drain cash.