Pulmonary Function Testing Center Break-Even: About $62K/Month

Fixed costs $50.2K/mo Monthly base load

Contribution margin 81% After variable costs

Break-even revenue $62.0K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this to test whether monthly revenue covers direct costs and the clinic's fixed monthly base.

Lean Base Full

Monthly revenue Revenue drives how much margin is left for the clinic's fixed cost base. $ Low volume High volume Variable expenses Use direct costs that rise with each test, like supplies, gas, outreach, and billing fees. $ Lower direct cost Higher direct cost

Money available to cover fixed costs $432,466 $519,167 revenue - $86,701 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base the margin has to cover. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which pulmonary function testing expenses are fixed, variable, or step up with volume?

Cost classification

Your break-even is only useful if rent, salaries, supplies, and claims fees are separated by behavior. In this model, Month 1 break-even works because recurring overhead is not mixed with per-test percentages or startup equipment spend.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic Facility Lease	Fixed	Use $12,500 per month as fixed occupancy spend for the relevant planning range.	Tying rent to test volume instead of treating it as monthly overhead.
Equipment Maintenance Contracts	Fixed	Use $2,800 per month as fixed operating support for testing equipment.	Leaving it out because the equipment purchase was already modeled.
EHR and Practice Management SaaS	Fixed	Use $1,200 per month as fixed software overhead before volume-based claim fees.	Blending platform subscription spend with billing and claims processing fees.
Medical Director	Semi-fixed	Use $8,750 per month in the first year: $210,000 annual salary × 0.5 FTE ÷ 12.	Treating physician oversight as per-test labor instead of a coverage step.
Patient Coordinator	Semi-fixed	Use $4,000 per month in the first year, then step up when FTE count rises.	Ignoring the jump from 1.0 FTE to 2.0 FTE in Year 2.
Disposable Medical Supplies	Variable	Model as 6.5% of revenue in the first year, declining to 5.5% by Year 5.	Using a flat monthly dollar amount when supplies move with tests performed.
Billing and Claims Processing Fees	Variable	Model as 4.0% of revenue in the first year, declining to 3.2% by Year 5.	Putting claim processing inside fixed overhead and overstating contribution margin.
Utilities and Biohazard Waste	Semi-variable	Use the $950 monthly baseline, then add usage-linked waste or utility changes only when documented.	Loading the $305,500 startup capex into monthly operating break-even spend.

How does break-even shift from a lean launch to fuller capacity for a pulmonary function testing center?

Scenario table

Lean launch covers fixed cost first, then higher referral volume and room use widen the cushion. The math improves because variable costs fall as a share of revenue while staffing and lease costs stay mostly fixed.

Planning assumptions only; actual break-even will move with referral flow, payer mix, and staff utilization.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch, Year 1	$161.8K	$30.7K	$50.2K	81.0%	$80.8K	Break-even is covered, but this has the thinnest cushion.
Base case, Year 3	$519.2K	$86.7K	$54.2K	83.3%	$378.3K	Best balance of volume and staffing, with solid break-even cover.
Full-capacity plan, Year 5	$962.0K	$139.5K	$58.2K	85.5%	$764.3K	Strongest cushion, but it depends on keeping rooms and staff busy.

What breaks this clinic’s break-even plan first?

Stress test

The plan clears break-even now, but the cushion shrinks fast if referrals slow, claims get denied, or lease and staffing costs rise. The key line is the $620K Year 1 break-even level; the current cushion is about $998K.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$620K	$998K cushion	The model clears break-even by a wide margin.
Revenue shortfall	Monthly revenue slips to $620K.	$620K	$0 cushion	Any referral delay or claim denial turns profit into loss.
Fixed cost rise	Fixed costs rise to the Year 5 level of $582K.	$719K	$899K cushion	Lease and overhead growth trims the cushion but still leaves room.
Margin pressure	Variable load stays at 19.0% instead of easing to 14.5%.	$620K	$998K cushion	Reimbursement pressure keeps the margin flat, so volume has to do the work.
Combined pressure	Fixed costs rise to $582K and variable load stays at 19.0%.	$719K	$899K cushion	Referral delays plus denials make the buffer thin fast.

What should you verify before you commit to this clinic’s lease and equipment?

Founder checklist

Do not lock the lease until referrals, staffing, payer setup, and cash all line up with the model. Break-even looks believable only if you can support about 484 billed tests a month and still absorb the $837K cash need in Month 2.

1Referral pipe484 tests/mo

Verify referring doctors can send about 484 billed tests each month in Year 1, because that volume is what makes the break-even plan credible.

2Lease size$12.5K/mo

Verify the current $12,500 monthly lease matches test-room use, because a bigger space without steady volume raises the break-even bar fast.

3Startup capex$305.5K

Verify you can fund the $305.5K startup capex, including the $120K buildout and $65K body plethysmograph system, before you commit to opening.

4Test capacity760 tests/mo

Verify staffing can really deliver the 760-test monthly nameplate capacity from 2 senior technologists, 1 junior technologist, 1 specialist, and 1 testing assistant.

5Cash reserve$837K

Verify you have the $837K minimum cash need in Month 2, because the clinic needs a deep cushion before volume settles.

6Claims flow40% claims

Verify payer credentialing is done before full launch and pressure-test billing at 40% claims processing fees, because weak reimbursement can wipe out contribution margin.