Patient Transport Break-Even Analysis: $105K Monthly Revenue Target

Fixed costs $7.9K/mo Base overhead

Contribution margin 85% After fees

Break-even revenue $9.3K/mo Monthly target

Break-even timing Month 17 Model break-even

Break-even calculator

Test how monthly revenue, variable costs, and fixed overhead shape break-even for a patient transport service.

Lean Base Full

Monthly revenue Revenue is the pool that covers variable costs and fixed overhead. $ Low volume Higher volume Variable expenses Use costs that rise with each trip or booking. $ Lower costs Higher costs

Money available to cover fixed costs $61,000 $70,000 revenue - $9,000 variable expenses

Margin ratio

87%

Covers fixed costs

Yes

Fixed monthly costs Use recurring monthly overhead the business must cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which patient transport expenses are fixed, and which move with sales?

Cost classification

Break-even gets cleaner when steady overhead stays separate from trip- or revenue-driven spend. In the first year, fixed office overhead is $7,900/month, while payroll and marketing step up before revenue fully arrives.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $3,500/month in monthly overhead.	Spreading rent across each completed trip.
Utilities & Internet	Fixed	Include $500/month in base overhead unless usage billing becomes material.	Tying the full amount to ride volume.
Legal & Compliance Retainer	Fixed	Include $1,200/month as recurring compliance overhead.	Treating compliance as optional after launch.
Business Insurance	Fixed	Include $600/month in monthly overhead, not per trip.	Modeling insurance renewals as purely variable.
Salaried Team Payroll	Semi-fixed	Use $627,500/year, about $52,300/month, for first-year staffing; add capacity in hiring steps.	Modeling payroll as a smooth percentage of revenue.
Seller and Buyer Marketing	Semi-fixed	Use the first-year budget of $350,000/year, about $29,200/month, tied to acquisition targets.	Assuming ad spend falls automatically when trips dip.
Cloud Hosting & Software Licensing	Variable	Apply 6.0% of revenue in the first year.	Putting usage-based platform spend into fixed overhead.
Payment Processing Fees	Variable	Apply 3.0% of revenue in the first year.	Forgetting fees rise with bookings and collected payments.

How does break-even change from lean launch to base ramp and full utilization for a patient transport service?

Scenario table

Lean launch carries a $894K monthly fixed load, base ramp rises to $1.40M, and fuller utilization reaches $1.76M. Because contribution only improves from 85.0% to 87.8%, break-even still lands after launch month.

Planning cases only; actual break-even will move with route density, mix, and hiring pace.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$1.05M	$158K	$894K	85.0%	-$1K	Tight route density is the key risk.
Base ramp	$1.62M	$220K	$1.40M	86.4%	-$1K	Strong facility and insurance mix keeps this near break-even.
Full utilization	$2.00M	$244K	$1.76M	87.8%	$0	Repeat volume and contracted demand can create a thin cushion.

What breaks the break-even plan for a patient transport launch?

Stress test

Year 1 works only if revenue lands near $1.05M, because each revenue dollar contributes $0.85 before fixed costs. The weak spots are higher payroll and acquisition spend, plus any drop in volume or rise in variable costs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; Year 1 fixed load is $894K and contribution margin is 85%.	$1.05M	$556K gap	Year 1 still carries a $472K EBITDA loss.
Revenue shortfall	Revenue runs 15% below Year 1 plan.	$1.05M	$631K gap	A small demand miss stretches the path to Month 17 break-even.
Fixed-cost pressure	Fixed load rises to $1.396M in Year 2.	$1.64M	$1.15M gap	Payroll and acquisition spend absorb the cushion.
Margin pressure	Variable expenses rise from 15% to 20% of revenue.	$1.12M	$621K gap	Insurance, fuel, and overtime can wipe out margin.
Combined pressure	Revenue runs 15% below plan while fixed load rises to $1.396M and variable expenses rise to 20%.	$1.75M	$1.32M gap	That mix can push the Month 16 cash floor into danger.

What should the founder verify before locking fixed spend for this patient transport service?

Founder checklist

Don’t lock leases, salaried hires, or fleet growth until buyer demand, driver supply, and onboarding timing hold at the Year 1 assumptions. The break-even story only works if CAC stays near $100 on the buyer side and $1.5K on the seller side.

1Buyer CAC$100

Confirm you can win patients and facilities near $100 each in the first operating year, or the sales engine will eat margin before repeat rides build.

2Seller CAC$1.5K

Confirm you can recruit drivers and fleet partners near $1.5K each, because higher supply cost makes coverage expensive fast.

3Route Density15 / 8 / 15

Check that Year 1 repeats by segment land near 15 individual, 8 facility, and 15 insurance orders so service areas stay dense enough for efficient dispatch.

4Fixed Load$60.2K/mo

Verify the current monthly fixed load is covered before adding more salaried roles, since the Year 1 base already runs about $60.2K before one-time capex.

5Contribution85%

Hold contribution around 85% by keeping cloud, vetting, payment, and support costs in line, because thin unit economics break quickly in transport.

6Cash CushionMonth 16

Keep enough cash to reach the Month 16 low point and hold the $155K setup and build spend outside break-even math.