Teleradiology Break-Even Analysis: $93K Monthly Revenue Target

Fixed costs $74.9K/mo Payroll plus overhead

Contribution margin 80.5% After variable costs

Break-even revenue $93.0K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a teleradiology model.

Lean Base Full

Monthly revenue Revenue sets the pool that covers variable costs and fixed overhead. $ Lower volume Higher volume Variable expenses These are the direct scan costs that rise with each extra case. $ Lower cost Higher cost

Money available to cover fixed costs $433,198 $530,240 revenue - $97,042 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs These are monthly costs that stay put even if scan volume slows. $ Lean overhead Heavier overhead

Break-even chart Revenue Total costs

Which teleradiology expenses are fixed, and which move with study volume?

Cost classification

Break-even is reliable only when scan-linked costs stay variable and monthly commitments stay fixed. In the first year, model read fees at 15.0% of revenue, cloud transfer at 2.0%, and base overhead separately.

Expense	Cost	Break-Even Treatment	Common Mistake
Radiologist Per-Scan Fees	Variable	Use 15.0% of revenue in the first year, declining to 13.0% by the fifth year.	Treating read fees as overhead instead of scan-linked expense.
Cloud & Data Transfer Fees	Variable	Use 2.0% of revenue in the first year, declining to 1.6% by the fifth year.	Burying image transfer drag inside general software spend.
Sales Commissions	Variable	Use 1.5% of revenue in the first year and tie it to signed client revenue.	Modeling commissions as fixed payroll instead of revenue-linked pay.
Malpractice Insurance Per Scan	Variable	Use 1.0% of revenue in the first year, separate from any base policy planning.	Combining per-scan coverage with fixed insurance assumptions.
Office Rent	Fixed	Carry $5,000 per month from Month 1 through Month 60.	Allocating rent per scan and overstating unit-level margin pressure.
General Software Licensing	Fixed	Carry $2,500 per month for core platform access planning.	Mixing fixed software access with variable cloud transfer charges.
Base Data Security & Compliance	Fixed	Carry $1,500 per month so baseline HIPAA security stays visible.	Hiding compliance in technology spend and losing accountability.
Payroll	Semi-fixed	Use about $59,167 per month in the first year, then step up as FTEs increase.	Treating all wages as variable when hiring changes in planned capacity steps.

How does break-even change across lean, base, and full teleradiology formats?

Scenario table

Break-even gets stronger as the mix broadens from overnight-only reads to full-service coverage. The bigger driver is fixed-cost absorption: once revenue rises faster than variable expense, profit expands fast.

Planning assumptions only; actual results depend on signed volume, credentialing, and coverage capacity.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean overnight-only	$182,000	$35,490	$74,867	80.5%	$71,643	Clears break-even, but the cushion is thin.
Base multi-client launch	$646,500	$126,068	$445,566	80.5%	$74,866	Best launch case; break-even is cleared with a modest cushion.
Full utilization mix	$7,605,096	$1,300,471	$143,200	82.9%	$6,161,425	Strong fixed-cost absorption; break-even risk is low if volume holds.

What breaks the break-even plan if volume softens or costs climb?

Stress test

The base plan has wide cushion, but the math tightens if referrals slow or radiologist fees rise. The biggest risks are client concentration, onboarding delays, and higher coverage or platform costs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change in revenue or cost rates.	$93,002	$553,498 cushion	Base plan has strong headroom.
Revenue shortfall	Revenue falls 20% to $517,200.	$93,002	$424,198 cushion	Client concentration makes demand swings hurt faster.
Fixed-cost increase	Fixed overhead rises 15% to $86,097.	$106,953	$539,547 cushion	Coverage, compliance, and admin spend can creep up.
Margin pressure	Variable load rises 5 points to 24.5%.	$99,162	$547,338 cushion	Radiologist fees or platform charges can cut margin fast.
Combined pressure	Revenue falls 20%, fixed overhead rises 15%, and variable load rises to 24.5%.	$114,036	$403,164 cushion	Lower volume plus higher cost pressure narrows headroom fast.

What should the founder verify before locking in long-term teleradiology commitments?

Founder checklist

Before you sign long-term staff, software, or lease commitments, confirm signed reads can fill the 5,990-read Year 1 capacity and cover the roughly $74.9K monthly fixed base. If demand is thin, keep hiring and noncritical spend on hold until the volume is real and billable.

1Signed volume5,990 reads/mo

Verify contracted reads by modality are close to Year 1 capacity before you lock in staffing and service terms.

2State coverage5 specialties

Verify state licensure coverage for every market you plan to serve before accepting any reads.

3Staffing ramp13 radiologists

Keep radiologist coverage, including emergency reads, tied to committed volume so you do not hire past demand.

4Go-live stackMonth 1

Test PACS/RIS integration and the data transfer workflow before launch so reads, handoffs, and turnaround stay clean.

5Margin mix80.5% CM

Verify billing by client and modality so the 19.5% variable cost load stays inside the model.

6Cash cushion$885K

Hold enough cash for the roughly $74.9K monthly fixed base and defer noncritical software, office, conference, and marketing spend until revenue coverage is visible.