Private Physiotherapy Break-Even Analysis: $48K Monthly Revenue

Fixed costs $41.2K/mo Staff plus overhead

Contribution margin 85.5% After variable costs

Break-even revenue $48.2K/mo Monthly target

Break-even timing Month 14 Model crossover

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a private physiotherapy clinic.

Lean Base Full

Monthly revenue Enter monthly patient revenue before variable costs. $ Low volume Busy clinic Variable expenses Enter the monthly costs that rise with visits, like supplies, billing fees, marketing, and training. $ Small costs Higher costs

Money available to cover fixed costs $72,274 $84,040 revenue - $11,766 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs Enter the monthly clinic cost base that stays in place even when visits dip. $ Slim overhead Large team

Break-even chart Revenue Total costs

Which private physical therapy expenses are fixed, and which move with treatment volume?

Cost classification

Break-even is only reliable if fixed overhead, visit-linked fees, and hiring steps are separated. In the first year, fixed overhead is $7,300 per month before payroll, while several expenses move as a percent of revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Rent	Fixed	Include $4,500 in monthly overhead.	Tying rent to visit count.
Utilities	Fixed	Include $900 in monthly overhead.	Burying it in treatment supplies.
EMR/EHR Software Base Subscription	Fixed	Include $450 in monthly overhead.	Modeling the base subscription per visit.
Accounting Services	Fixed	Include $500 in monthly overhead.	Dropping recurring admin support from break-even.
Medical Supplies per Treatment	Variable	Model at 2.0% of treatment revenue.	Using a flat monthly supply budget.
Billing Service Fees	Variable	Model at 1.5% of treatment revenue.	Treating claim processing as fixed overhead.
Marketing and Advertising	Variable	Model at 8.0% of first-year revenue.	Freezing spend while revenue scales.
Physical Therapist Salaries	Semi-fixed	Add payroll in hiring steps as capacity expands.	Spreading therapist pay evenly per visit.

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

Scenario table

More therapists, more visits, and higher prices lift contribution faster than fixed clinic costs. So the lean case stays near the line, while the base and full cases create more room above break-even.

Scenario figures are planning assumptions, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean clinic, Year 1	$469k	$68k	$412k	85.5%	-$12k	Still under the $482k signal, so break-even risk is high.
Base clinic, Year 2	$803k	$112k	$554k	86.0%	$136k	Above the $644k signal, so the clinic has a real cushion.
Full clinic, Year 3	$1.19m	$161k	$718k	86.5%	$314k	Well past the $831k signal, so break-even pressure eases further.

What breaks the break-even plan if visits slip or costs rise?

Stress test

The base plan sits only about $13k above break-even, so small misses matter. A 10% revenue dip, a 10% overhead bump, or weaker visit margin can push the clinic into a real loss fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$482k	$13k gap	The plan has very little cushion.
Revenue shortfall	Revenue falls 10% to about $422k.	$482k	$52k gap	A small sales miss becomes a real loss fast.
Fixed-cost pressure	Fixed overhead rises 10% to about $453k.	$530k	$52k gap	Rent or payroll pressure cuts through the cushion.
Margin pressure	Variable expenses rise from 14.5% to 19.5% of revenue.	$512k	$35k gap	Supply, billing, or discount drag weakens contribution.
Combined pressure	Revenue falls 10%, fixed overhead rises 10%, and variable expenses rise to 19.5%.	$563k	$114k gap	Lower visits and higher costs break the model.

Is this clinic ready to break even before you sign the lease?

Founder checklist

Don't commit yet unless you can show 263 paid visits a month, cover $7.3K of non-wage fixed costs, and absorb the $33.9K monthly Year 1 wage load. You also need the $181K startup capex funded and $690K of cash through Month 24.

1Referral flow263 visits/mo

Validate that referrals, billing, and private-insurance intake can produce at least 263 paid visits a month before you sign the lease, because that is the floor that makes break-even believable.

2Fixed overhead$7.3K/mo

Check that rent, utilities, software, and admin stay near the $7.3K monthly non-wage base, or the break-even visit target moves up fast.

3Wage load$33.9K/mo

Make sure the Year 1 staffing plan really fits a $33.9K monthly wage burden, since payroll is the biggest fixed cost.

4Unit margin$157/visit

Confirm each therapist visit leaves about $157 after variable costs, because one $85K salary needs roughly 45 visits a month to cover itself.

5Capacity ramp255 visits/mo

Test whether the first-year 255-visit capacity case is realistic and add no-show rules before opening the calendar, or the schedule will look full on paper and thin in practice.

6Cash cushion$690K

Keep at least $690K of cash available through Month 24 so the clinic can absorb the build-out and staffing ramp without running out of runway.