Break-Even Analysis For Tutoring For Dyslexics: Month 1 Plan

Fixed costs $2.3K/mo Core monthly base

Contribution margin 85% After variable costs

Break-even revenue $2.7K/mo Revenue to cover costs

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs against break-even for a dyslexia tutoring service.

Lean Base Full

Monthly revenue Revenue sets the amount left to cover fixed costs after direct costs. $ Low sales High sales Variable expenses Use costs that rise with each month of tutoring demand. $ Low costs High costs

Money available to cover fixed costs $41,368 $44,965 revenue - $3,597 variable expenses

Margin ratio

92%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which tutoring expenses stay fixed, and which move with enrollment and sales?

Cost classification

Break-even only works if each expense behaves the right way in the model. Treat tutor hiring as step-based, sales-linked fees as variable, and core overhead as fixed so Month 1 break-even doesn’t look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Lead Instructor/Program Director	Semi-fixed	Model the $80,000 salary as capacity leadership that starts in Month 1 before full enrollment.	Treating leadership as variable and hiding the upfront break-even burden.
Dyslexia Tutors	Semi-fixed	Increase salary expense in staffing steps as tutor FTE grows from 2.0 in the first year to 8.0 in Year 5.	Spreading tutor pay as a smooth percentage of revenue instead of hiring in blocks.
Online Platform Subscription	Fixed	Include $500 per month in monthly overhead across the planning range.	Dropping it from break-even because it feels small next to payroll.
Admin Office Rent	Fixed	Include $1,000 per month as fixed overhead from Month 1 through Month 60.	Linking rent to enrollment even though the lease does not move with each student.
Utilities & Internet	Semi-variable	Start with the $150 monthly base, then review usage as online sessions and staff count rise.	Treating all connectivity and utility spend as fixed at every enrollment level.
Specialized Curriculum Licenses	Variable	Apply the first-year rate of 3.0% of revenue, falling to 2.0% by Year 5.	Budgeting licenses as a flat monthly bill when they scale with paid students.
Student Material Kits	Variable	Apply the first-year rate of 2.0% of revenue, falling to 1.0% by Year 5.	Forgetting that each added student still needs learning materials.
Marketing & Digital Ads	Variable	Model acquisition spend at 8.0% of revenue in the first year, declining to 4.0% by Year 5.	Calling marketing fixed and missing the spend needed to fill open group slots.

How does break-even change from a lean launch to a full-capacity tutoring model?

Scenario table

Break-even improves as the model scales because occupancy and pricing grow faster than payroll and overhead. The lean launch works, but the base case has the cleanest cushion, and full capacity has the strongest margin.

Scenario figures are planning assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean online-first launch	$114.7k	$17.2k	$17.3k	85%	$80.2k	Best for an online-first launch; Month 1 break-even leaves a thin cushion.
Base hybrid case	$751.2k	$90.1k	$32.5k	88%	$628.6k	Best for a hybrid model; the cushion is cleaner at steady occupancy.
Full-capacity small center	$2.23m	$201.0k	$51.1k	91%	$1.98m	Best for a small center; this has the widest cushion if demand stays full.

What breaks first if enrollment slows or costs creep up?

Stress test

Base-case break-even is about $20.4k a month on $17.3k fixed costs and an 85% contribution margin, but slower enrollment, a 15% fixed-cost bump, or variable expenses rising from 15% to 20% can push the plan quickly out of range.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$20,353	$0 cushion	60% occupancy is the floor, so there is no cushion if fill rates slip.
Revenue shortfall	Monthly revenue falls 20% below the base case.	$20,353	$3,460 gap	A 20% revenue miss creates a $3,460 monthly operating gap.
Fixed-cost increase	Monthly fixed costs rise 15%.	$23,406	$3,053 gap	Overhead creep lifts break-even fast, especially if admin tools and staff add up.
Margin pressure	Variable expenses rise from 15% to 20%.	$21,625	$1,272 gap	Tutor pay pressure or ad spend above 8% cuts the margin cushion.
Combined pressure	Monthly fixed costs rise 15% and variable expenses rise to 20%.	$24,869	$4,516 gap	Hiring before enrollment and cost creep can push break-even close to $25k.

Is your dyslexia tutoring model ready for break-even before you sign the lease and hire ahead?

Founder checklist

Before signing a lease or adding headcount, confirm you can fill 60% of Year 1 capacity, keep variable costs near 15%, and stay above the $20,353 monthly break-even line. If any of those slip, the model still burns cash even with strong tuition pricing.

1Parent Leads30 of 50 seats

Verify enough parent leads to fill 30 of 50 Year 1 group seats, because 60% occupancy is the demand floor before launch spend makes sense.

2Price Test$375/$475

Confirm families will pay the elementary and middle school monthly rates before you scale outreach and lock the program mix.

3Assessment Flow$3.5K Yr 1

Lock the screening and initial assessment steps so the Year 1 assessment income lands on schedule and supports early cash flow.

4Contribution Margin85% CM

Check that variable costs stay near 15% of revenue, so contribution margin stays near 85% before fixed payroll and rent hit.

5Tutor Coverage2.0 FTE

Line up trained dyslexia tutors before you add seats, because Year 1 needs 2.0 full-time equivalent coverage and service quality drops fast if staffing slips.

6Runway Cushion$896K

Hold enough cash for the opening month; the model’s minimum cash is $896K, and you should keep fixed overhead near $2.3K per month until revenue clears break-even.