Proprioception Training Break-Even: Cover Costs At ~$356K

Fixed costs $9.7K/mo Base overhead

Contribution margin 81% After variable costs

Break-even revenue $11.9K/mo Revenue floor

Break-even timing Month 1 Launch month

Break-even calculator

Test how monthly revenue, variable expenses, and fixed costs shape break-even for this therapy program.

Lean Base Full

Monthly revenue Revenue is the cash left to cover fixed costs after direct costs. $ Low sales Busy clinic Variable expenses These rise with treatment volume, such as billing, referrals, supplies, and materials. $ Light costs Heavy costs

Money available to cover fixed costs $42,900 $53,000 revenue - $10,100 variable expenses

Margin ratio

81%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead break-even must cover. $ Lean overhead High overhead

Break-even chart Revenue Total costs

Which expenses stay fixed, and which move with patient volume?

Cost classification

Break-even is only reliable when recurring overhead is separated from session-linked spend. Fixed costs set the monthly hurdle, while variable costs reduce contribution margin as patient volume grows.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Lease, $6,500/month	Fixed	Sets the monthly overhead hurdle before any treatment margin counts.	Spreading rent per session and hiding idle capacity.
EHR and Practice Management Software, $850/month	Fixed	Included in base monthly overhead across the planning range.	Assuming software falls when visits dip.
Professional Liability Insurance, $1,200/month	Fixed	Covered by contribution before the clinic clears break-even.	Leaving insurance out of the monthly hurdle.
Utilities and High Speed Internet, $950/month	Semi-fixed	Mostly stable, but rises when space use and operating hours step up.	Treating utilities as fully variable per visit.
Patient Coordinator Wages	Semi-fixed	Rises in staffing steps from 1.0 FTE in Year 1 to 3.0 FTE in Year 5.	Modeling front desk labor as one flat salary forever.
Medical Billing Services, 6.0% of revenue in Year 1	Variable	Reduces contribution margin on each dollar collected.	Treating billing as fixed when it scales with revenue.
Direct Marketing and Referrals, 8.0% of revenue in Year 1	Variable	Reduces contribution margin as new patient volume grows.	Treating referral marketing as fixed overhead.
Medical Supplies and Tape, 3.5% of revenue in Year 1	Variable	Moves with treatment activity and lowers per-session margin.	Forgetting supplies rise with visit count.

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

Scenario table

As the clinic moves from a lean launch to a fuller caseload, revenue rises faster than fixed overhead, so break-even gets easier to cover. The base case is the cleanest target once referrals are repeatable.

Planning assumptions only; actual results will vary with referrals, staffing mix, and room use.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$530k	$101k	$289k	81.0%	$140k	Best for controlled launch; break-even sits near $356k/month.
Base scaled mix	$1.27m	$216k	$346k	83.0%	$710k	Best after referral flow proves repeatable; break-even sits near $417k/month.
Full caseload mix	$2.15m	$327k	$395k	84.8%	$1.43m	Best when therapist capacity and intake stay tight; break-even sits near $466k/month.

What pushes this break-even plan off track?

Stress test

The base case leaves about $141K of cushion, but it gets thin fast if bookings slip or costs creep up. A 10% revenue drop, higher overhead, or weaker session margin each cuts that buffer hard.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$389K	$141K cushion	Base case clears break-even, but the buffer is not wide.
Revenue shortfall	Revenue falls 10% to about $477K.	$389K	$98K cushion	Cancellations or slower referrals cut the buffer fast.
Fixed-cost pressure	Fixed overhead rises 10% to about $318K.	$392K	$112K cushion	Lease, admin, or staffing creep tightens cash room.
Margin pressure	Variable expenses rise from 190% to 240%.	$380K	$114K cushion	Billing drag, overtime, or downtime hurts session margin.
Combined pressure	Revenue falls 10%, variable expenses rise to 240%, and fixed costs rise 10%.	$432K	$45K cushion	Three small hits leave almost no slack.

Can this clinic fill enough sessions to cover the lease, staff, and equipment before it commits?

Founder checklist

Yes, but only if you can prove 312 completed sessions a month, hold the blended price near $114 per session, and keep the first-year provider mix productive enough to support 463 sessions a month. If those checks miss, full overhead will outrun volume fast.

1Demand floor312/mo

Prove you can book and complete at least 312 sessions a month before you sign the lease, because that is the floor needed to cover the clinic's fixed load.

2Fixed load$28.9K/mo

Check that lease, software, insurance, utilities, admin, and base salaries stay near $28.9K a month, since each visit has to pay this bill.

3Price mix$114/session

Test payer and cash-pay mix until the blended price sits near $114 a session, which leaves about 81% contribution margin after supplies, materials, billing, and referral spend.

4Capacity ramp463/mo

Verify the first-year room schedule can reach about 463 monthly sessions from 2 senior physical therapists, 1 staff physical therapist, 1 neurological specialist, and 1 physical therapy assistant at the stated utilization rates, and do not add extra specialists until that schedule holds.

5Cash trough$837K

Hold enough cash for the Month 2 trough, because the model's minimum cash need is $837K and a short reserve leaves you exposed before volume stabilizes.

6Launch setup$119K

Confirm the roughly $119K equipment and setup spend fits the launch plan, and make sure intake, billing, documentation, scheduling, cleaning, and referral tracking can move patients through each day without slowing sessions.