Pressure Garment For Scar Treatment Break-Even Analysis: $134K/Month

Fixed costs $93.8K/mo Salaries and overhead

Contribution margin 76% After variable costs

Break-even revenue $123.5K/mo Monthly revenue target

Break-even timing Month 2 First breakeven month

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue sets the margin pool that has to cover fixed costs. $ Low sales High sales Variable expenses These are direct costs that rise with each garment made and sold. $ Low direct cost High direct cost

Money available to cover fixed costs $548,730 $699,667 revenue - $150,937 variable expenses

Margin ratio

78%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which expenses are fixed, variable, semi-variable, or semi-fixed for a pressure garment break-even model?

Cost classification

Break-even is reliable only if garment-level inputs stay in contribution margin and fixed overhead stays below the line. Here, textiles, seamstress labor, pattern work, shipping, and commissions move with volume; rent and compliance fees do not.

Expense	Cost	Break-Even Treatment	Common Mistake
Medical Grade Textile	Variable	Include $6 to $22 per garment in unit economics because fabric use rises with each custom order.	Using one average fabric amount across torso vests, sleeves, stockings, gloves, and face masks.
Direct Seamstress Labor	Variable	Treat $18 to $45 per garment as variable when paid per unit or directly tied to production volume.	Treating remake labor as fixed even when rework rises with order count.
Pattern Generation Processing	Variable	Include $6 to $15 per garment in contribution margin because each custom pattern creates processing work.	Burying per-order pattern work inside fixed software maintenance.
Shipping and Logistics	Variable	Include $8 to $15 per garment as a volume-linked fulfillment charge.	Treating outbound shipping as fixed overhead when shipments rise with sales.
Manufacturing Facility Rent	Fixed	Model $12,000 per month as fixed overhead for the relevant monthly planning range.	Allocating rent per garment and calling it variable.
U.S. Food and Drug Administration (FDA) Compliance and Audit Fees	Fixed	Model $2,500 per month as fixed overhead from Month 1 through Month 60.	Dropping compliance spend from break-even because it is not tied to a specific unit.
Marketing and Conference Travel	Semi-fixed	Model $5,000 per month as a planned selling commitment that can step up with clinic coverage and events.	Treating every travel dollar as tied to each individual sale.
Sales Commissions	Variable	Apply 5.0% of revenue in the break-even model because commission expense scales with sales.	Classifying commissions as fixed payroll instead of a revenue-linked selling expense.

How does break-even shift from a lean launch to Year 1 and Year 5 scale for custom compression garments?

Scenario table

Break-even improves as volume rises because revenue per garment climbs while sales, SaaS, and referral costs stay percentage-based. What this estimate hides: Year 3 selling percentages are not fully specified, so the middle case is a planning anchor, not a promise.

Planning assumptions only; fit rates, remake volume, and referral mix can move break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch threshold	$134k	$40k	$94k	70.0%	$0	At this level, fixed costs are covered.
Year 1 base case	$313k	$94k	$94k	70.0%	$125k	Comfortable cushion, but clinic flow must hold.
Year 5 scale case	$1.205M	$325k	$185k	73.1%	$695k	Scale lifts coverage; fitting capacity stays the key risk.

What breaks the break-even plan for this pressure garment business?

Stress test

Here’s the quick math: Year 1 revenue is $3.750M and break-even sits near $1.341M, so the base plan has a $2.409M cushion. The real risk is slower referrals plus remake, shipping, and fixed-cost creep.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.341M	$2.409M cushion	Base Year 1 plan clears break-even with room.
Revenue shortfall	Referral volume drops below about 315 garments a month at Year 1 average pricing.	$1.341M	$0.270M cushion	The cushion gets thin fast if referrals slow.
Fixed-cost pressure	Fixed overhead rises by $10K a month.	$1.484M	$2.266M cushion	Each $10K monthly increase pushes the bar up by about $143K.
Margin pressure	Remakes, fitting labor, shipping, and pattern rework cut contribution margin by 1 percentage point.	$1.361M	$2.389M cushion	Small margin loss raises the revenue needed to break even.
Combined pressure	Referrals fall below 315 garments a month, fixed costs rise $10K a month, and margin drops 1 point.	$1.504M	$0.107M cushion	When volume and cost pressure hit together, the cushion almost disappears.

What should the founder verify before signing the lease and scaling the custom garment workflow?

Founder checklist

Do not lock in the facility or full team until referral demand, pricing, and cash all support the Year 1 plan. The model points to 8,800 garments, $3.75M revenue, and breakeven by Month 2, so the upfront setup only works if demand is already real.

1Referral Pipeline$3.75M

Verify enough clinic referrals and follow-on orders exist to support the Year 1 revenue plan before you sign the lease.

2Base Burn$93.8K/mo

Add the $28K monthly overhead to about $65.8K a month of Year 1 payroll, then check that gross margin can carry that burn from launch.

3Unit Margin72%-78%

Check each garment against its $47 to $99 unit cost and the Year 1 10% variable load, because the lower-priced glove sets the tightest margin floor.

4Throughput8.8K units

Make sure scanners, sewing, and quality control can handle the 8,800-unit Year 1 build, or the clinic pipeline will outrun delivery.

5Cash Reserve$915K

Hold at least the Month 2 minimum cash need, since capex and working capital hit before the model pays back in 8 months.

6Capex Gate$590K

Test the 3D scanner, laser cutting, sewing, software, and clean room setup before spending the full capex plan, and lock the measurement and remake flow before clinic outreach.