Neurofeedback Therapy Break-Even Analysis: About $46K Monthly

Fixed costs $8.5K/mo Recurring clinic base

Contribution margin 91% After variable costs

Break-even revenue $9.3K/mo Target revenue floor

Break-even timing Month 1 Launch month break-even

Break-even calculator

Test whether monthly revenue covers direct costs and fixed clinic overhead.

Lean Base Full

Monthly revenue Revenue is the cash coming in before direct costs and overhead. $ Lower sales Higher sales Variable expenses Direct costs like payment fees, referral commissions, consumables, and software rise with revenue. $ Lower fees Higher fees

Money available to cover fixed costs $257,600 $280,000 revenue - $22,400 variable expenses

Margin ratio

92%

Covers fixed costs

Yes

Fixed monthly costs These are clinic overhead and salaried staff costs paid each month, even when visits are slow. $ Lower costs Higher costs

Break-even chart Revenue Total costs

Which neurofeedback therapy expenses are fixed and which move with sessions?

Cost classification

Break-even is reliable only if recurring operating costs are sorted correctly. Keep the $375,000 startup build-out and equipment spend out of monthly break-even revenue, or Month 1 break-even will look worse than operations show.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Space Lease	Fixed	Use $5,500 per month in the recurring overhead base.	Treating rent as session-driven when it stays due even in slow months.
Utilities	Fixed	Use $800 per month for the relevant planning range.	Over-modeling small usage swings instead of using the monthly assumption.
Professional Liability Insurance	Fixed	Use $450 per month as required operating coverage.	Leaving it out because it doesn’t attach to one treatment session.
Marketing & Brand Development	Fixed	Use $1,000 per month until the plan changes.	Calling all marketing variable even though this budget is fixed monthly.
Consumables & Disposables	Variable	Apply 2.0% of first-year revenue, declining to 1.6% by the mature year.	Using a flat dollar amount and missing higher supply use as sessions grow.
Payment Processing Fees	Variable	Apply 2.5% of first-year revenue, declining to 2.1% by the mature year.	Forgetting card fees when calculating contribution margin per paid session.
Clinical Software Stack	Semi-variable	Model the $350 monthly admin subscription plus usage fees at 1.5% of first-year revenue.	Putting all software in fixed overhead and missing session-linked usage charges.
Salaried Clinical and Admin Staff	Semi-fixed	Step payroll up as hiring increases, such as specialists moving from 2 to 9 FTEs over the plan.	Spreading payroll per session and hiding the cash hit from each new hire.

How does break-even change from a lean clinic to base and full utilization?

Scenario table

Higher staffing pushes fixed costs up, so break-even revenue rises from lean to full. Still, fuller schedules lift contribution faster than overhead, which gives the base and full cases a wider cushion.

Planning assumptions only; actual results will move with staffing, pricing, and utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean clinic run-rate	$109,700	$9,873	$41,833	91%	$57,994	Revenue clears the lean break-even line, but the cushion is still the smallest.
Base clinic scale	$280,000	$22,400	$80,583	92%	$177,017	Highlighted case; higher payroll raises break-even, but utilization still leaves a solid buffer.
Full clinic utilization	$562,900	$39,403	$123,917	93%	$399,580	Revenue is well above break-even, so this case has the strongest cushion.

What breaks first if referrals slow or costs creep up?

Stress test

The base plan clears break-even, but the cushion is tied to referrals and payroll. The first warning line is around $46,000 in monthly revenue, so any dip in intake or rise in fixed staff cost shows up fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$45,970	$57,994 cushion	Base case clears break-even, but payroll still drives risk.
Revenue shortfall	Monthly revenue falls 15% to $93,245, with the 9% variable rate unchanged.	$45,970	$43,020 cushion	A 15% revenue dip cuts the cushion by about $15k.
Fixed-cost increase	Fixed costs rise 10% to $46,017.	$50,568	$53,810 cushion	Lease or staffing creep lifts the break-even bar.
Margin pressure	Variable expenses rise 3 points to 12% of revenue.	$47,538	$54,703 cushion	Higher processing or usage fees eat the cushion.
Combined pressure	Monthly revenue falls 15%, fixed costs rise 10%, and variable expenses rise to 12%.	$52,292	$36,039 cushion	This is the point where a small miss can turn into loss.

What should you verify before you lock in the lease, buy the systems, and hire the team?

Founder checklist

If you’re about to commit, first prove monthly demand clears 235 sessions and cash can absorb the $375K launch capex plus the $674K low point. At a Year 1 blended price of about $196 per session, that’s the real break-even test.

1Demand Proof235 sessions/mo

Verify you can book at least 235 monthly sessions before you assume the break-even price will hold.

2Fixed Load$41.8K/mo

Add lease, utilities, insurance, admin software, and Year 1 payroll before you commit, or the fixed-cost base is too heavy.

3Margin Check91% CM

Keep Year 1 variable cost near 9% of revenue so each $196 session still leaves enough contribution to cover payroll and rent.

4Capacity Ramp560 sessions/mo

Make sure the room plan and intake flow can handle 560 sessions a month across six clinicians before you add more headcount.

5Cash Cushion$1.05M

Fund the $375K capex build and hold enough cash to cover the $674K low point, or working capital will tighten too soon.

6Lead Flow$1,000/mo

Track referral sources and test whether $1,000 a month in marketing can keep the schedule full, because referral commissions start at 3.0%.