Pediatric Clinic Break-Even Analysis: $105K Monthly Revenue

Fixed costs $14.8K/mo Recurring base

Contribution margin 82% After variable costs

Break-even revenue $18.0K/mo Monthly target

Break-even timing Month 14 Model breakeven

Break-even calculator

Use this to test whether monthly revenue clears variable costs and the clinic's fixed monthly overhead.

Lean Base Full

Monthly revenue Revenue is the cash pool that covers variable and fixed costs. $ Low sales High sales Variable expenses Use costs that rise with each visit, like supplies, billing, and patient acquisition. $ Low costs High costs

Money available to cover fixed costs $270,538 $319,400 revenue - $48,862 variable expenses

Margin ratio

85%

Covers fixed costs

Yes

Fixed monthly costs Use rent, payroll, software, insurance, and other monthly overhead. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which pediatric clinic expenses are fixed and which move with visits?

Cost classification

Break-even gets noisy when rent, subscriptions, visit costs, and staffing steps sit in one bucket. Keep fixed overhead, revenue-linked costs, and clinician hiring separate so Month 14 break-even ties to real capacity and margin.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease/Rent	Fixed	Include $8,500/month from Month 1 through Month 60 in fixed overhead.	Tying rent to patient visit count.
Clinical provider and care-team payroll	Semi-fixed	Year 1 clinical wages are $750,000/year, or about $62,500/month, and rise when clinicians are added.	Treating new clinicians as free capacity.
Medical Supplies & Vaccines	Variable	Deduct 7.0% of revenue in the first year before contribution margin.	Burying vaccines in rent overhead.
Lab Test Outsourcing	Variable	Deduct 2.0% of revenue as outsourced lab work scales with patient activity.	Ignoring outsourced lab margin drag.
Billing & Collections Fees	Variable	Model at 5.0% of revenue in the first year because collections fees move with billed volume.	Modeling collections as fixed.
Marketing & Patient Acquisition	Semi-variable	Use 4.0% of revenue in the first year, then adjust as patient panels fill.	Keeping launch spend flat forever.
EHR & Software Subscriptions	Fixed	Include $1,500/month as recurring software overhead.	Mixing setup fees with monthly subscriptions.
Insurance items	Fixed	Include Clinic Insurance and Professional Liability Insurance together at $1,750/month.	Leaving malpractice outside break-even.

How does break-even change across lean, base, and full clinic setups?

Scenario table

The lean launch still carries the most break-even risk because fixed clinic payroll is heavy before volume spreads it out. By Year 2, the model clears break-even, and by Year 5 the cushion is much wider.

Planning assumptions only; actual results can shift with volume, staffing, and payer mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$883K	$159K	$858K	82%	-$134K	Still below break-even; fixed cost load is too heavy.
Base case	$1.71M	$287K	$1.23M	83.2%	$188K	Clears break-even with a modest cushion.
Full scale	$4.97M	$606K	$2.35M	87.8%	$2.01M	Strong cushion; multi-provider scale absorbs fixed costs well.

What pushes a pediatric clinic below break-even?

Stress test

Year 1 is already below break-even: revenue is $883K/month versus $1,047K needed. A 10% revenue dip, a 10% fixed-cost jump, or variable expenses rising from 18% to 21% all widen the gap fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1,047K	$164K gap	Year 1 starts below break-even.
Revenue shortfall	Revenue falls 10% to $795K/month.	$1,047K	$252K gap	Slow appointment fill widens the loss quickly.
Fixed-cost pressure	Fixed costs rise 10% to $944K/month.	$1,151K	$268K gap	Payroll and overhead creep push break-even higher.
Margin pressure	Variable expenses rise from 18% to 21% of revenue.	$1,087K	$204K gap	Billing fees and supply costs squeeze contribution margin.
Combined pressure	Revenue falls 10%, variable expenses rise to 21%, and fixed costs rise 10%.	$1,195K	$400K gap	This mix drives about $316K monthly operating loss.

Can this pediatric clinic cover break-even before you sign the lease and hire the full team?

Founder checklist

Not yet unless demand, payer collections, and staffing line up with the model. The clinic’s fixed monthly overhead is $14.75K before payroll, Year 1 wages total about $853K a year, and cash needs reach $469K before the burn trough in Month 13.

1Visit Volume1,064→1,261

Verify booked visits can rise from the current plan toward break-even before you lock the lease and full-time hires, because demand is what protects the fixed cost base.

2Fixed Overhead$14.75K/mo

Check that rent, utilities, insurance, software, IT, cleaning, and office supplies stay near this level, because $14,750 starts on Month 1 and does not flex with visits.

3Unit Margin18% var.

Verify payer enrollment and collections before you count on $120 pediatrician visits and $100 nurse practitioner visits, because Year 1 supplies, labs, billing, and acquisition already take about 18% of revenue.

4Staff Ramp$71.1K/mo

Match staffing to booked visit volume, because the Year 1 plan carries about $71.1K a month in wages and the schedule has to fill enough slots before you add more providers.

5Cash Buffer$469K

Hold at least this cash before launch, because the model bottoms out at Month 13 and needs $469K to survive the early burn.

6Launch Capex$370K

Keep the $150K build-out, $75K diagnostic equipment, $30K EHR setup, and $10K vaccine refrigerator out of monthly break-even math, because these are upfront cash uses that do not improve run-rate by themselves.