Podiatry Clinic Break-Even Analysis: $82K Monthly Revenue

Fixed costs $66.7K/mo Year 1 base

Contribution margin 81.5% After variable costs

Break-even revenue $81.8K/mo Monthly target

Break-even timing Month 2 Early ramp

Break-even calculator

Test whether monthly revenue clears variable expenses and still covers fixed clinic costs.

Lean Base Full

Monthly revenue Revenue sets the pool that can cover direct costs and fixed overhead. $ Lower sales Higher sales Variable expenses Use direct costs that rise with patient volume, supplies, billing, and card fees. $ Lower direct costs Higher direct costs

Money available to cover fixed costs $233,685 $288,500 revenue - $54,815 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base contribution margin must cover. $ Lean overhead Higher overhead

Break-even chart Revenue Total costs

Which podiatry clinic expenses are fixed, variable, semi-variable, or semi-fixed for break-even?

Cost classification

For this clinic, break-even is only useful if fixed overhead stays separate from charges that rise with treatment volume. Put rent, insurance, software, and core payroll in fixed; model supplies and billing fees as revenue-linked items.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Rent	Fixed	Use the $12,000 monthly rent as fixed overhead in the break-even formula.	Adding buildout or imaging equipment as monthly operating rent.
Professional Malpractice Insurance	Fixed	Use the $3,500 monthly premium as fixed overhead while provider count stays within the plan.	Tying the premium directly to each treatment or claim.
EHR and Practice Management Software	Fixed	Use the $1,200 monthly software charge as fixed overhead for the planning range.	Modeling it like a per-visit transaction fee.
Medical Supplies and Disposables	Variable	Apply the modeled rate to revenue: 6.0% in the first year, rising to 7.0% by the mature year.	Entering it as a flat monthly supply budget.
Orthotics and DME Inventory Cost	Variable	Apply the modeled rate to revenue: 5.0% in the first year, rising to 6.0% by the mature year.	Treating inventory purchases as fixed overhead.
Medical Billing and Collection Fees	Variable	Apply the collection fee rate to revenue: 5.0% early, then 4.0% by the mature year.	Mixing vendor billing fees with billing staff salaries.
Utilities and Internet Services	Semi-variable	Start with the $1,500 monthly base, then split out usage if visits, rooms, or equipment hours drive the bill higher.	Keeping the full amount fixed after volume expands.
Certified Medical Assistant Payroll	Semi-fixed	Add payroll in staffing steps as capacity expands, from 2.0 full-time equivalents in the first year to 6.0 by the mature year.	Averaging assistant labor as if every treatment adds labor one-for-one.

How does break-even shift from a lean podiatry clinic to the base and full build?

Scenario table

Lean starts with a thin cushion, base adds more room, and full builds the strongest buffer because revenue rises faster than fixed payroll and overhead. The break-even line moves down as utilization improves.

Planning assumptions only; actual break-even will move with payer mix, utilization, staffing, and collection rates.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean startup mix	$89.5k	$16.6k	$66.7k	81.5%	$6.3k	Small cushion; a slow month can erase profit.
Base clinic mix	$166.9k	$30.9k	$74.2k	81.5%	$61.9k	Better cushion; added providers spread fixed costs more safely.
Full expansion mix	$288.5k	$54.8k	$78.2k	81.0%	$155.5k	Strong cushion; revenue growth outruns fixed cost growth.

What breaks the break-even plan for a podiatry clinic?

Stress test

The base case clears break-even, but the cushion is not huge. A 15% revenue dip, 10% higher fixed overhead, or 5 points of margin loss can each squeeze the plan; combined, they turn a small cushion into a large gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$818k	$77k cushion	Base case clears break-even.
Revenue shortfall	Revenue drops 15% to $761k.	$818k	$47k gap	Slower visits turn profit negative fast.
Fixed-cost increase	Fixed overhead rises 10% to $733k.	$900k	$5k gap	A small overhead bump pushes the clinic below break-even.
Margin pressure	Variable expenses rise 5 points, cutting margin to 76.5%.	$872k	$24k cushion	Billing or supply drag still leaves a cushion, but it shrinks.
Combined pressure	Revenue drops 15%, fixed costs rise 10%, and margin falls to 76.5%.	$958k	$151k gap	Payer delays, idle provider time, and hiring early can pile up into a deep gap.

What should the founder verify before signing the lease and hiring the opening team?

Founder checklist

Before you sign the lease or lock full staffing, make sure Year 1 demand, payer setup, and cash still fit the model. The opening mix needs about 239.5 weighted visits a month, and the plan still needs a $733K cash cushion by Month 6.

1Referral demand239.5 weighted visits/mo

Check that referral sources and payer enrollment can support this flow before you sign the lease, because break-even depends on real patient volume.

2Fixed load$66.7K/mo

Make sure rent, insurance, software, marketing, utilities, admin, and base payroll stay covered, since this is the cash burden you carry before growth shows up.

3Contribution margin81.5%

With 11.0% in supplies and orthotics inventory plus 7.5% in billing and card fees, the clinic keeps about 81.5% of treatment revenue before rent and payroll.

4Staff ramp4 providers

Verify the opening team can cover the Year 1 mix of one surgeon, one general podiatrist, one sports medicine specialist, and one orthotics specialist, because capacity has to match booked visits.

5Cash buffer$733K

Keep at least this reserve, since the model bottoms out in Month 6 and $343K of equipment and buildout spend still hits early.

6Launch bookingsBooked visits

Fund marketing before launch, but track booked visits, not leads, so you can see whether the schedule is filling before fixed costs bite.