Urgent Care Center Break-Even Analysis: ~$124K Monthly Revenue

Fixed costs $100.3K/mo Clinic base load

Contribution margin 81% After variable costs

Break-even revenue $123.8K/mo Revenue needed

Break-even timing Month 25 Model break-even

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where this urgent care center breaks even.

Lean Base Full

Monthly revenue Revenue sets the margin available to cover fixed costs. $ Lower sales Higher sales Variable expenses These are direct costs that rise as visit volume and testing grow. $ Lower cost Higher cost

Money available to cover fixed costs $149,549 $180,180 revenue - $30,631 variable expenses

Margin ratio

83%

Covers fixed costs

$36,168 short

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

Break-even chart Revenue Total costs

Which urgent care center expenses are fixed and which move with patient volume?

Cost classification

Break-even only works if fixed costs are covered before each visit adds margin. Here, the first-year base includes $12,000 clinic rent and about $75,000 monthly payroll, while supply, pharmacy, lab, and billing fees move with visit revenue.

Expense	Cost	Break-Even Treatment	Common Mistake
Clinic rent	Fixed	Include $12,000 per month from Month 1 through Month 60 before calculating visit margin.	Spreading rent per visit and missing the cash drain in slow months.
Year 1 payroll baseline	Fixed	Carry about $75,000 per month in first-year wages before patient volume arrives.	Treating all payroll as visit-driven when the clinic must staff the doors first.
Provider staffing additions	Semi-fixed	Add wages in steps as full-time equivalents rise, such as physicians moving from 1 to 2 FTE in Year 3.	Modeling provider pay as purely variable instead of tied to shifts and capacity.
Utilities	Semi-variable	Use the $1,800 monthly base, then flex usage if extended hours increase power, water, or HVAC load.	Keeping utilities flat while adding evening or weekend operating hours.
Medical supplies consumed	Variable	Apply 7.0% of revenue in the first year as a direct drag on contribution margin.	Using gross revenue for break-even and forgetting supplies used per visit.
Pharmaceuticals dispensed	Variable	Apply 4.0% of revenue in the first year and reduce visit-level margin before fixed overhead.	Ignoring medication usage when patient mix shifts toward higher-treatment cases.
Outsourced lab and imaging fees	Variable	Apply 5.0% of revenue in the first year for tests sent outside the clinic.	Assuming diagnostic revenue is fully kept by the clinic.
Billing and electronic medical record fees	Variable	Apply 3.0% of revenue in the first year before measuring break-even contribution.	Treating revenue-linked billing fees like a flat software subscription.

How does break-even shift from lean launch to base ramp and full scale for an urgent care center?

Scenario table

Break-even gets easier as provider coverage, visit capacity, and pricing move up, but fixed payroll rises too. The lean launch still runs below break-even, while the base and full setups build more cushion.

Planning figures only. These are modeled assumptions, not guarantees.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$1.03M	$196K	$1.00M	81.0%	-$167K	Still below break-even; coverage is too thin.
Base ramp	$1.78M	$323K	$1.27M	81.8%	$183K	Breaks even with a small cushion, but staffing discipline still matters.
Full scale	$3.38M	$575K	$1.86M	83.0%	$950K	Well above break-even if visit volume and reimbursement hold.

What pressures can push this urgent care center past break-even?

Stress test

Year 1 revenue is about $1.033M against about $1.238M break-even revenue, so the plan starts $205K short. Slow payer enrollment, weak walk-in traffic, and any lift in rent, staffing, or outsourced lab fees can push Month 25 break-even out and raise the $126K cash need.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.238M	$205K gap	The base plan is still below break-even in Year 1.
Revenue shortfall	Year 1 revenue lands at $1.033M instead of the break-even line.	$1.238M	$205K gap	Slow payer enrollment or weak walk-in traffic keeps cash burn high.
Fixed-cost increase	Monthly fixed costs rise by $1K from rent, utilities, or overtime.	$1.253M	$220K gap	Small overhead creep widens the opening-year hole.
Margin pressure	Variable expenses rise 1 point to 20% of revenue.	$1.253M	$220K gap	More outsourced lab use or billing friction cuts contribution by about $10K.
Combined pressure	Monthly fixed costs rise by $1K and variable expenses rise 1 point.	$1.268M	$235K gap	That mix can push Month 25 break-even out and raise the $126K cash need.

Can this urgent care prove break-even before you sign the lease and buy the equipment?

Founder checklist

Test the lease, staffing, payer setup, and cash against the model before you commit. If first-year visit flow or reimbursement lag slips, the clinic can miss Month 25 break-even and burn cash through Month 24.

1Demand proof1,110 visits/mo

Confirm local walk-in, employer, and referral volume can support the Year 1 treatment load before you sign the lease.

2Fixed load$100.3K/mo

Check that rent, overhead, and Year 1 staffing fit the monthly cash load, because this cost lands whether visits are strong or soft.

3Margin mix81% pre-payroll

Keep supplies, pharmaceuticals, outsourced lab and imaging, and billing fees near the modeled 19% of sales, and make sure payer enrollment is live so that margin turns into cash.

4Staffing cover8.8 FTE

Verify the physician, PA, NP, radiology, MA, manager, and front desk schedule can cover the clinic without gaps that cut throughput.

5Capex plan$413K

Confirm the build-out, X-ray, lab, furnishings, IT, security, and signage budget is funded before you buy equipment or open the doors.

6Cash cushion$126K

Hold the modeled minimum cash so Month 24 pressure does not hit operations before Month 25 break-even and the 41-month payback horizon.