Telemedicine Break-Even Analysis: $596K Monthly Revenue Target

Fixed costs $10.9K/mo Base overhead

Contribution margin 82.2% After variable costs

Break-even revenue $13.2K/mo Revenue target

Break-even timing Month 13 Model break point

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue sets the margin pool that covers fixed costs. $ Low sales High sales Variable expenses Direct costs here are practitioner payouts, fees, patient acquisition, and scalable tech. $ Low direct costs High direct costs

Money available to cover fixed costs $668,323 $789,980 revenue - $121,657 variable expenses

Margin ratio

85%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which telemedicine expenses are fixed, and which move with patient visits?

Cost classification

Your break-even gets noisy fast if practitioner payouts are modeled like payroll. Treat stable monthly overhead as fixed and revenue-linked items as variable, so the Month 13 break-even target stays useful.

Expense	Cost	Break-Even Treatment	Common Mistake
Platform Maintenance & Hosting	Fixed	Include $5,000 per month in fixed overhead from Month 1 through Month 60.	Tying hosting fully to visit volume when the model states a flat monthly amount.
HIPAA Compliance Software	Fixed	Include $1,200 per month as required compliance overhead.	Leaving compliance out of break-even because it does not create visits directly.
General Liability & Malpractice Insurance	Fixed	Include $800 per month before calculating required contribution margin.	Spreading insurance across practitioner payouts instead of treating it as monthly overhead.
Cybersecurity Services	Fixed	Include $1,500 per month as a fixed platform protection expense.	Cutting cybersecurity from the base case even though it runs every month.
Practitioner Payouts	Variable	Apply 11.0% of revenue in the first year, falling to 9.0% by the fifth year.	Treating clinician payouts as fixed payroll instead of revenue-linked visit fulfillment.
Platform Transaction Fees	Variable	Apply 1.0% of revenue in the first year, falling to 0.6% by the fifth year.	Ignoring small payment fees because each one looks minor on a single visit.
Marketing & Patient Acquisition	Variable	Apply 5.0% of revenue in the first year, falling to 3.0% by the fifth year.	Modeling acquisition spend as fixed when it scales with booked consultations.
Customer Support Lead	Semi-variable	Model 0.5 FTE in the first year, 1.0 FTE in the second year, and 1.5 FTE in the third year.	Holding support flat while patient volume and issue volume rise.

How does break-even change from a lean launch to a full telemedicine setup?

Scenario table

Break-even gets easier as volume rises because fixed overhead is already covered in the Year 2 and Year 3 setups. The lean case is close to break-even, while the base and full cases build a much wider cushion.

Planning assumptions only; actual results will move with provider fill, pricing, and support load.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$64,725	$11,521	$48,975	82.2%	$4,229	Thin cushion; small fill-rate misses can wipe out profit.
Base case	$197,582	$32,799	$66,475	83.4%	$98,308	Strong profit signal; break-even risk drops fast if utilization holds.
Full launch	$510,584	$78,633	$80,850	84.6%	$351,101	Wide cushion; capacity and support must scale with demand.

What breaks the Year 1 break-even plan for telemedicine?

Stress test

Year 1 revenue is $64,725 against a $59,580 break-even point, so the cushion is only $5,145. Fixed overhead is $48,975 a month and variable costs start at 17.8%, so small misses or fee hikes can erase that buffer; Month 12 cash need is $661,000.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$59,580	$5,145 cushion	Only a thin first-year buffer.
Revenue shortfall	Year 1 revenue falls by the full $5,145 cushion.	$59,580	$0 cushion	Any deeper miss turns profit into loss.
Fixed-cost pressure	Monthly cybersecurity spend rises by $1,500.	$61,405	$3,320 cushion	One overhead line item cuts the buffer by more than a third.
Margin pressure	Variable load rises to 24.3% from higher practitioner payouts.	$64,728	$3 gap	The Year 1 margin almost disappears.
Combined pressure	Revenue falls by $5,145 and variable load rises to 24.3%.	$64,728	$5,148 gap	This can push break-even past Month 13 and strain Month 12 cash.

Is the telemedicine launch ready before you commit to platform spend, hiring, and paid acquisition?

Founder checklist

Don’t lock in the build yet unless you can staff all five visit types, prove bookings at $75 to $150, and carry the $48.975K monthly burn. Break-even only holds if provider supply, pricing, and cash all work before paid acquisition scales.

1Provider coverage5 specialties

Confirm you can schedule general physician, pediatrician, dermatologist, psychiatrist, and nutritionist coverage at the Year 1 capacity plan, or paid acquisition will fill a pipeline you cannot serve.

2Margin check82.2%

At Year 1 pricing and cost rates, each visit keeps about 82.2% after practitioner payouts, transaction fees, marketing, and scalable tech, so this has to stay intact for break-even to work.

3Overhead load$48.975K/mo

Year 1 payroll and fixed overhead total about $48.975K a month, so you need enough visits to cover this burn before adding more headcount.

4Price test$75-$150

Test whether patients book at $75 to $150 per visit across the service mix, because the top-line plan only works if demand holds at those price points.

5Platform flow$175K

Confirm secure video, payment collection, and compliant storage work end to end before launch, because the first $175K of build and storage spend only pays off if visits convert cleanly.

6Cash reserve$661K

Keep support lean and hold at least $661K of cash through Month 12, because the model does not reach break-even until Month 13 and payback takes 18 months.