VR Therapy Center Break-Even Analysis: About $129K/Month

Fixed costs $111.9K/mo Base monthly burn

Contribution margin 86.5% After variable spend

Break-even revenue $129.4K/mo Monthly target

Break-even timing Month 14 Model break point

Break-even calculator

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

Lean Base Full

Monthly revenue Revenue sets the margin available to cover overhead. $ Low sales High sales Variable expenses These costs rise with each month of care. $ Low outflows High outflows

Money available to cover fixed costs $92,555 $107,000 revenue - $14,445 variable expenses

Margin ratio

86%

Covers fixed costs

$19,395 short

Fixed monthly costs This is the monthly overhead contribution margin must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which expenses are fixed, variable, or capacity-driven in a VR therapy center break-even model?

Cost classification

Break-even gets reliable only when rent, payroll, session fees, and usage costs land in the right buckets. Treat launch capital spend outside operating break-even, or you’ll overstate the session volume needed after opening.

Expense	Cost	Break-Even Treatment	Common Mistake
Facility Rent	Fixed	Use $8,500 per month as baseline overhead from Month 1 through Month 60.	Spreading rent across sessions and making it look variable.
Utilities	Semi-variable	Start with the $1,800 monthly base, then review usage as treatment rooms and devices run longer hours.	Treating the full bill as fixed when higher capacity can lift usage.
Professional Liability Insurance	Fixed	Use $1,400 per month as recurring clinical overhead in the break-even model.	Linking insurance to session count instead of covered operating period.
Salaried Clinical and Admin Payroll	Semi-fixed	Model payroll in staffing steps as therapist and admin full-time equivalents increase by year.	Using a per-session labor rate when salaries rise in capacity blocks.
Payment Processing & Billing Fees	Variable	Apply 3.0% of first-year revenue, declining to 2.5% by the fifth year.	Budgeting this as a flat monthly fee despite revenue-linked charges.
Patient Acquisition Marketing	Variable	Apply 4.5% of first-year revenue, declining to 3.0% by the fifth year.	Keeping marketing flat while new patient volume drives spend.
VR Software Licensing Fees	Variable	Apply 3.5% of first-year revenue, declining to 2.2% by the fifth year.	Classifying session-linked software fees as fixed overhead.
VR Content Usage Royalties	Variable	Apply 2.5% of first-year revenue, declining to 1.5% by the fifth year.	Ignoring royalty drag when treatment volume scales.

How does break-even change from lean launch to full scale at a VR therapy center?

Scenario table

Break-even moves quickly as utilization and staffing scale. The lean launch case still misses break-even, while the base and full cases generate enough contribution margin to cover fixed costs and build a cushion.

Planning assumptions only; actual results will move with utilization, staffing, and payer mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$1,242K	$168K	$1,119K	86.5%	-$45K	Still below break-even, so cash stays tight.
Base Year 2 case	$2,076K	$249K	$1,465K	88.0%	$362K	First clear cushion above break-even.
Full Year 3 case	$3,116K	$343K	$1,923K	89.0%	$850K	Well above break-even, with room for slower months.

What pressure points can break the VR therapy center's break-even plan?

Stress test

Year 1 is tight: $1.242M revenue sits below the $1.294M break-even point, so the model starts with a $52K gap. A 10% revenue dip, a 10% overhead rise, or higher variable costs can quickly turn that into a much larger miss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$1.294M	$52K gap	Only a small launch gap to close.
Revenue shortfall	Revenue falls 10% to $1.118M.	$1.294M	$152K gap	Empty clinician hours widen the miss fast.
Fixed-cost increase	Fixed costs rise 10% to $1.231M.	$1.423M	$181K gap	Rent and staffing pressure push breakeven up.
Margin pressure	Variable expenses rise to 185%.	$1.373M	$131K gap	Higher subscription costs squeeze contribution.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise to 185%.	$1.511M	$315K gap	Three pressures together can stretch payback past 41 months.

What should you verify before signing the lease and opening a VR therapy center?

Founder checklist

Treat the lease, staffing plan, and build-out as one break-even test. If referral demand, clinician coverage, and cash runway do not line up, wait; fixed costs will outrun the first-year ramp.

1Referral Demand688 sessions/mo

Verify referral sources can fill about 688 monthly sessions before you lock in the $8,500 lease, because empty chairs turn fixed rent into fast cash burn.

2Base Overhead$15.25K/mo

Check that rent, utilities, software, IT, admin, and insurance stay supportable on day one, since this fixed load starts before volume catches up.

3Contribution Margin86.5% CM

Verify each session keeps about 86.5% after VR licensing, content royalties, billing fees, and patient acquisition spend, or the fixed team will be too heavy.

4Clinician Coverage14 FTE

Confirm licensed clinician coverage across 14 Year 1 wage FTE, and do not hire ahead of utilization if onboarding slips or payroll will outrun sessions.

5Launch Build$455K

Fund the $455K launch build, including $75K for headsets, $120K for computers, $90K for build-out, and $25K for booking, and prove the VR stack runs cleanly before paid sessions start.

6Cash CushionMonth 13

Hold the $269K minimum cash balance through Month 13, because breakeven lands in Month 14 and payback takes 41 months.