Remote Patient Monitoring Break-Even Analysis: $351K Monthly Revenue

Fixed costs $47.0K/mo Monthly overhead base

Contribution margin 67.7% After variable load

Break-even revenue $69.4K/mo Needed monthly sales

Break-even timing Month 8 Model break-even point

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a remote patient monitoring service.

Lean Base Full

Monthly revenue Revenue drives the margin available to cover fixed costs. $ Lower revenue Higher revenue Variable expenses These are direct costs that rise with revenue, like devices, cloud, logistics, and payment fees. $ Lower costs Higher costs

Money available to cover fixed costs $615,250 $846,814 revenue - $231,564 variable expenses

Margin ratio

73%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base that contribution margin must cover. $ Lower fixed Higher fixed

Break-even chart Revenue Total costs

Which remote patient monitoring expenses are fixed, and which move with sales?

Cost classification

Break-even is only reliable when $47,000/month of fixed overhead stays separate from the first-year 32.3% variable load. If device replacement and shipping get buried in overhead, contribution margin looks too high and Month 8 break-even can slip.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include in the $47,000/month fixed expense base before calculating break-even volume.	Spreading rent across patients too early and hiding the real monthly hurdle.
Insurance & Legal	Fixed	Treat as recurring overhead that must be covered by total contribution margin.	Linking it to new patient adds when it stays stable in the planning range.
Medical Device Costs	Variable	Subtract as a revenue-linked charge; Year 1 uses 18.0% of revenue.	Treating device replacement like fixed overhead instead of usage-linked spend.
Cloud Infrastructure & Data Storage	Variable	Subtract from revenue before contribution margin; Year 1 uses 8.0% of revenue.	Assuming storage is flat while patient data volume grows.
Logistics & Shipping	Variable	Deduct as patient and device activity grows; Year 1 uses 3.5% of revenue.	Treating shipping like fixed overhead and overstating contribution margin.
Payment Processing & Transaction Fees	Variable	Deduct directly from revenue; Year 1 uses 2.8% of revenue.	Leaving processing fees below the break-even line.
Clinical Support Staff	Semi-variable	Split base coverage from volume-driven staffing; Year 1 starts at 3.0 FTE.	Modeling all clinical labor as fixed even when patient load drives hiring.
Software Engineers	Semi-fixed	Add in hiring steps as product capacity expands; Year 1 starts at 4.0 FTE.	Scaling engineering one-for-one with revenue instead of in capacity blocks.

How does break-even shift across lean, base, and full Remote Patient Monitoring cases?

Scenario table

The fixed cost base stays the same, so the break-even result comes down to revenue mix and how much contribution each case throws off. The lean case still runs short, the base case is at break-even, and the full case creates a clear cushion.

Planning assumptions only; implementation revenue and payer mix can move results materially.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean RPM setup	$250,000	$80,750	$237,416	67.7%	-$68,166	Fixed costs still outrun contribution.
Base RPM case	$350,688	$113,272	$237,416	67.7%	$0	Fixed costs are covered; small mix shifts can swing profit.
Full RPM scale	$500,000	$161,500	$237,416	67.7%	$101,084	Break-even risk is low and cash cushion opens up.

What breaks the remote patient monitoring break-even plan?

Stress test

Slower onboarding and higher device support are the first things to break the model. At about $350,688 of revenue, a 15% miss opens a $35,612 gap, and a 10% fixed-cost bump or 5-point margin drop widens it further.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$350,688	$0 cushion	Break-even lands in Month 8, so timing still matters.
Revenue shortfall	Revenue falls 15% below break-even.	$298,085	$35,612 gap	Slower enrollment burns through the cushion fast.
Fixed-cost increase	Fixed costs rise 10% to $261,158.	$350,688	$23,742 gap	Hiring ahead of census pushes the target higher.
Margin pressure	Variable load rises to 37.3%.	$350,688	$17,536 gap	More clinician review time cuts contribution quickly.
Combined pressure	Revenue falls 15%, fixed costs rise 10%, and variable load rises to 37.3%.	$298,085	about $74,259 gap	Slow onboarding, higher churn, and cost creep stack hard.

What should a remote patient monitoring founder verify before scaling sales hires and device inventory?

Founder checklist

Do not lock in sales hiring, inventory, or new fixed spend until provider or payer demand, billing flow, and device throughput all clear. The model only works if CAC stays near $2,800, break-even lands by Month 8, and cash does not fall below negative $455,000 in Month 7.

1Demand Proof$2.8K CAC

Show a steady provider or payer pipeline before you add sales headcount, because Year 1 customer acquisition cost is $2,800.

2Billing FlowMonth 8

Prove claims, coding, and collections now, because the model does not break even until Month 8 and payback takes 23 months.

3Unit Margin67.7% CM

Keep device, cloud, shipping, and payment costs under control, because they already consume 32.3% of revenue in Year 1.

4Fixed Burn$237.4K/mo

Hold monthly fixed spend below this level until census grows, or salaries and overhead will outrun the patient base.

5Runway-$455K Month 7

Protect cash through Month 7, since minimum cash bottoms at negative $455,000 before the business turns positive.

6Device Ramp$200K inventory

Stage devices and add clinical support only as volume rises, because the plan ties up $200,000 in initial inventory and starts with 3 clinical FTE.