Tennis Club Break-Even Analysis: $567K Monthly Revenue Target

Fixed costs $35.8K/mo Core monthly overhead

Contribution margin 83% Kept after variable costs

Break-even revenue $43.3K/mo Revenue to cover costs

Break-even timing Month 21 Model break-even point

Break-even calculator

Use this calculator to test monthly revenue against variable costs and fixed overhead to see where break-even lands.

Lean Base Full

Monthly revenue Higher monthly revenue gives more room to cover court and staff costs. $ Lower sales Higher sales Variable expenses Use direct costs that rise with play, coaching, and shop sales. $ Lower costs Higher costs

Money available to cover fixed costs $46,000 $55,000 revenue - $9,000 variable expenses

Margin ratio

84%

Covers fixed costs

$1,000 short

Fixed monthly costs This is the monthly cost base revenue must cover. $ Lower overhead Higher overhead

Break-even chart Revenue Total costs

Which tennis club expenses are fixed and which move with sales in break-even?

Cost classification

Break-even gets unreliable when fixed overhead is treated like it can shrink with slow court usage. Here, rent, core payroll, and software stay monthly, while court wear and pro-shop supplies move with revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Rent and Property Lease	Fixed	Include $12,000 per month before any revenue share or member volume assumptions.	Treating rent as flexible when court bookings are slow.
Utilities and Water	Fixed	Include $3,500 per month per the model for the relevant planning range.	Assuming it falls in direct proportion to court usage.
Property Insurance	Fixed	Include $2,000 per month in recurring overhead from Month 1 through Month 60.	Leaving insurance out of break-even overhead.
Member Management Software License	Fixed	Include $800 per month as an operating subscription, not launch setup.	Treating software as a one-time system purchase only.
Cleaning and Janitorial Services	Fixed	Include $1,500 per month for baseline facility cleaning.	Tying all cleaning expense to bookings instead of facility readiness.
General Manager and Head Tennis Coach	Fixed	Include $10,000 per month combined, based on $65,000 plus $55,000 annual salaries.	Delaying needed management and coaching coverage in the model.
Assistant Coaches and Maintenance and Facilities Staff	Semi-fixed	Add payroll in steps as lesson demand and facility load scale.	Adding staff before coaching sessions and court usage support it.
Court Maintenance and Resurfacing	Variable	Model at 9.0% of first-year revenue, then update as court use changes.	Treating court wear like rent instead of usage-linked upkeep.

How does break-even shift across lean, base, and full club utilization?

Scenario table

Break-even sits near $56,667 a month because fixed costs are about $46,750 and the contribution margin is 82.5%. Year 1 prices of $89 individual, $149 family, $75 private coaching, $35 clinic, and $65 tournament entry can lift revenue density, but staffing can absorb the gain.

Scenario figures are planning assumptions, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean utilization	$45,333	$7,933	$46,750	82.5%	-$9,350	Below break-even; the club burns about $9.4k a month.
Base utilization	$56,667	$9,917	$46,750	82.5%	$0	At break-even; any softness turns profit negative.
Full utilization	$68,000	$11,900	$46,750	82.5%	$9,350	Above break-even; the club builds about $9.4k monthly cushion.

What breaks the tennis club’s break-even plan?

Stress test

The base plan sits right at break-even, so small misses in member demand or court use push the club negative fast. Higher fixed overhead, especially rent, labor, and utilities, is the main reason the cushion is thin.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$56,667	$0 gap	The club is only at break-even, so there is no cushion.
Revenue shortfall	Revenue falls 10% to about $51,000.	$56,667	$4,675 gap	Slow membership conversion or weak court use creates a monthly loss.
Fixed-cost increase	Fixed costs rise 10% to $51,425.	$62,333	$4,675 gap	Rent, labor, and utility pressure can erase the base margin fast.
Margin pressure	Variable expenses rise from 17.5% to 20.5%.	$58,805	$1,700 gap	Higher court maintenance and operating load push break-even up.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise to 20.5%.	$64,686	$10,880 gap	Underfilled clinics and higher overhead create a sharp monthly loss.

What should a tennis club founder verify before signing the lease and starting buildout?

Founder checklist

Check the lease, buildout, and staffing plan against the model’s Month 21 break-even before you commit. If the club can’t carry about $43,000 a month in fixed load, the launch needs more pre-sold demand or a smaller start.

1Fixed Load$43K/mo

Verify the lease, insurance, utilities, software, and Year 1 payroll can run at this level before opening demand catches up.

2Buildout Capex$760K

Lock the full court, lighting, booking, fixture, and security budget before any construction spend starts.

3Membership Proof$89 / $149

Pre-sell individual and family plans at the modeled prices so the base membership engine is real, not assumed.

4Coaching Ramp1.0→2.0 FTE

Test private sessions at $75 and group clinics at $35 before you add assistant coaches and lift payroll.

5Marketing CAC$150 CAC

Keep Year 1 marketing at $45,000 and confirm each new member lands near the modeled $150 acquisition cost.

6Cash Cushion$1.738M gap

Hold enough cash for the modeled minimum draw and Month 21 break-even path, plus a court upkeep reserve at 9.0% of revenue.