Sports Psychology Break-Even Analysis: $319K Monthly Revenue

Fixed costs $26.4K Monthly overhead

Contribution margin 83% After delivery costs

Break-even revenue $31.9K Monthly target

Break-even timing Month 2 Model hit

Break-even calculator

Test whether monthly revenue covers variable costs and fixed overhead.

Lean Base Full

Monthly revenue Revenue is the cash that must cover direct costs and overhead. $ Early sales Mature sales Variable expenses Use direct costs that rise with each session, workshop, and sale. $ Low drag High drag

Money available to cover fixed costs $169,708 $199,657 revenue - $29,949 variable expenses

Margin ratio

85%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution margin has to cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which sports psychology expenses stay fixed, and which move with sales?

Cost classification

Break-even gets sharper when fixed overhead stays separate from delivery costs. In the first operating year, office overhead and core wages set the monthly hurdle, while practitioner, transaction, and commission fees cut margin on each sale.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $3,500 per month in overhead.	Don’t spread rent across sessions.
Software Subscriptions	Fixed	Include $1,200 per month in overhead.	Don’t treat software as per-client only.
Business Insurance	Fixed	Include $800 per month in overhead.	Don’t omit business coverage.
Core Staff Wages	Fixed	Include about $18,542 per month in first-year overhead.	Don’t exclude founder pay.
General Office Supplies	Semi-variable	Start with $300 per month, then scale with office size.	Don’t tie every dollar to revenue.
Practitioner Fees	Variable	Reduce contribution margin using the Year 1 delivery fee rate.	Don’t count delivery labor twice.
Platform Transaction Fees	Variable	Reduce contribution margin by 1.5% of sales in Year 1.	Don’t bury fees in software.
Sales Commissions	Variable	Reduce contribution margin by 2.5% of sales in Year 1.	Don’t classify commissions as fixed marketing.

How does break-even move from a lean launch to a base growth plan and a full-service practice?

Scenario table

Break-even improves as the mix shifts from one-on-one coaching to team and organizational work. Higher ticket prices lift revenue faster than fixed payroll, but the fuller model still needs high utilization to keep the cushion intact.

Planning view only; these scenario figures are model assumptions, not a guarantee of actual results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$439k	$75k	$264k	83%	$100k	Healthy cushion, but team demand must stay steady.
Base growth	$998k	$159k	$329k	84.1%	$510k	Strong cushion; repeat referrals and team contracts lower risk.
Full-service practice	$1.997M	$300k	$409k	85%	$1.288M	Wide cushion; utilization and scheduling become the main watchouts.

What breaks the break-even plan for a sports psychology service?

Stress test

Year 1 revenue has about a $120k cushion over break-even, so the plan clears the line. But that buffer shrinks fast if bookings soften, fixed staff costs rise, or workshop travel pushes variable expenses above the Year 1 level.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$319,000	$120,000 cushion	The plan clears break-even, but the cushion is not wide.
Revenue shortfall	Year 1 revenue falls 10% to $395,000.	$319,000	$76,000 cushion	A modest booking miss cuts the cushion by about one-third.
Fixed-cost pressure	Fixed overhead rises by $25,000 to $289,000.	$348,000	$91,000 cushion	Extra staff or rent pushes break-even higher fast.
Margin pressure	Variable expenses rise from 17% to 20% of revenue.	$330,000	$109,000 cushion	Travel-heavy work and commission creep eat contribution quickly.
Combined pressure	Revenue falls 10%, fixed overhead rises $25,000, and variable expenses hit 20%.	$361,000	$34,000 cushion	This leaves little room against Month 2 break-even and the $882k cash need.

What should you verify before signing the office lease and hiring for this sports psychology practice?

Founder checklist

Before you lock in the $3,500 monthly lease or add staff, make sure referrals, workshops, and retainers can support the model. Year 1 points to about $73K in monthly revenue, $26.4K in fixed overhead, and a cash dip to $882K in Month 2 before breakeven.

1Referral Flow$3.5K/mo

Confirm enough warm referrals exist before you carry the office lease, because rent starts before the booking base is proven.

2Session Rates$120-$200

Check that athletes will buy one-on-one sessions in the modeled price band, since those bookings drive the core practice volume.

3Workshop Demand$2.5K

Validate paid team workshops at the $2,500 price point, because that revenue only works if teams say yes early.

4Retainer Demand$5K

Prove organizations will sign at $5,000 per engagement, since those deals are too large to count on without real pipeline.

5Margin Stack83% CM

Keep fixed overhead near $26.4K a month and protect the 83% contribution margin, or extra software and hiring will push breakeven out.

6Capacity Floor$73K/mo

Make sure the current coach mix can handle about $73K in Year 1 monthly revenue and keep the $882K cash floor intact through Month 2.