Radiology Center Break-Even Analysis: $151K Monthly Revenue

Fixed costs $129.9K Monthly base

Contribution margin 86% After variable costs

Break-even revenue $151.0K Monthly target

Break-even timing Month 1 Launch break-even

Break-even calculator

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

Lean Base Full

Monthly revenue Higher monthly revenue gives more room to cover fixed staffing and overhead. $ Low sales High sales Variable expenses These are direct imaging costs that rise with scan volume. $ Low direct cost High direct cost

Money available to cover fixed costs $201,700 $234,535 revenue - $32,835 variable expenses

Margin ratio

86%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that break-even has to cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which radiology center expenses are fixed, and which move with scan volume?

Cost classification

Break-even only works if overhead is kept separate from per-scan spend. In the first year, rent stays fixed at $20,000 monthly, while supplies, consumables, and billing fees should reduce contribution margin as volume grows.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Lease/Rent	Fixed	Place the $20,000 monthly rent above break-even revenue as committed overhead.	Spreading rent across scans and hiding the true monthly hurdle.
Utilities	Semi-variable	Model the $4,000 monthly base, then allow usage to rise with imaging volume.	Treating power use as flat while MRI, CT, and X-ray hours increase.
IT & Software Subscriptions	Semi-fixed	Keep the $3,500 monthly base fixed until added users, billing tools, or PACS capacity create a step-up.	Calling all software variable when PACS, or picture archiving and communication system, access is mostly committed.
Medical Supplies & Contrast Agents	Variable	Deduct 4.0% of first-year revenue before covering fixed overhead.	Putting contrast and clinical supplies in overhead instead of per-scan spend.
Imaging Consumables	Variable	Deduct 1.5% of first-year revenue as scan volume is performed.	Ignoring small consumables because each item looks immaterial.
Billing & Collections Fees	Variable	Deduct 5.0% of first-year revenue as claims and collections are processed.	Modeling billing fees as office overhead instead of revenue-linked expense.
Equipment Service Contracts	Semi-variable	Start with the contract load, then tie the usage-linked portion to 3.5% of first-year revenue.	Treating service contracts as fully fixed when higher scan counts can raise maintenance burden.
MRI, CT, and X-ray Technologist Payroll	Semi-fixed	Model Year 1 technologist payroll as a committed $490,000 annual base, or about $40,833 monthly, before adding staff in later years.	Treating technologist staffing as fully per-scan when headcount changes in steps.

How does break-even shift across lean, base, and full radiology center volume?

Scenario table

Mix matters more than raw volume here. MRI and CT earn more per slot than X-ray, so a fuller case lifts contribution faster, while fixed staff and equipment keep early break-even tight.

Planning figures only; reimbursement and volume are not guaranteed.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$2,517k	$352k	$1,299k	86.0%	$866k	Coverage is thin, so a softer referral flow can erase the cushion fast.
Base scale mix	$6,675k	$902k	$1,795k	86.5%	$3,979k	This is the first steady cushion, with fixed costs clearly covered.
Full utilization mix	$29,950k	$3,450k	$2,965k	88.5%	$23,535k	MRI and CT drive a wide cushion, and break-even risk is low.

What breaks the radiology center break-even plan?

Stress test

Year 1 clears break-even by about $866k on $2.517M revenue, $352k variable expense, and $1.299M fixed cost. The cushion is real, but it shrinks fast if payer contracting slows, CT stays underused, or MRI no-shows rise.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.65M	$866k cushion	Base case clears break-even, but overhead stays heavy.
Revenue shortfall	Year 1 revenue falls 15%.	$1.60M	$541k cushion	Slow payer contracting cuts the cushion fast.
Fixed-cost increase	Fixed costs rise 10%.	$1.78M	$736k cushion	Lease, utilities, and payroll growth eat headroom.
Margin pressure	Variable expenses move from 14.0% to 16.0% of revenue.	$1.70M	$816k cushion	CT underuse and MRI no-shows squeeze contribution.
Combined pressure	Revenue falls 15%, variable expenses rise to 16.0%, and fixed costs rise 10%.	$1.77M	$369k cushion	Three hits still clear break-even, but the buffer gets thin.

What should a radiology center founder verify before signing the lease and buying the scanners?

Founder checklist

Don’t sign the lease or buy the scanners until rent, capex, staffing, payer rates, and referral flow still clear break-even. This model has a $151K monthly break-even target and a Month 5 cash dip of about $2.572M, so the gap has to be funded first.

1Lease test$151K/mo

Verify the $20,000 monthly rent still works at about $151K in monthly break-even revenue, or the center starts underwater before volume catches up.

2Capex fund$3.845M

Confirm the full MRI, CT, X-ray, PACS, electronic health record (EHR), build-out, furniture, and IT spend is funded before launch, because this capital leaves fast in Months 1 to 6.

3Cash reserve$2.572M

Make sure cash covers the Month 5 low point of about $2.572M, since a smaller buffer can force cuts before referrals convert.

4Year 1 staff11 FTE

Lock the Year 1 roster at 1 radiologist, 2 MRI technologists, 2 CT technologists, 2 X-ray technologists, 1 nurse, and admin roles so payroll does not outrun use.

5Payer rates$580/$340/$75

Check contracts before you count on $580 MRI, $340 CT, and $75 X-ray reimbursement, and stress-test billing collections at 50% of revenue so margin and cash both hold.

6Referral flow100/240/560

Map enough physician referrals to reach 100 MRI, 240 CT, and 560 X-ray monthly studies in the Year 1 case, or the staffed capacity will sit empty.