Wellness Center Break-Even Analysis: $498K Monthly Revenue Target

Fixed costs $40.1K/mo Payroll included

Contribution margin 57% After variable costs

Break-even revenue $70.4K/mo Monthly target

Break-even timing Month 13 Base case month

Break-even calculator

Use this calculator to see if monthly revenue clears variable expenses and fixed costs for a wellness center.

Lean Base Full

Monthly revenue Revenue is the pool that pays variable costs first and then fixed overhead. $ Low sales High sales Variable expenses These are direct costs that rise with revenue, like supplies, fees, and marketing. $ Low direct High direct

Money available to cover fixed costs $41,860 $52,000 revenue - $10,140 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

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

Break-even chart Revenue Total costs

Which wellness center expenses are fixed, variable, semi-variable, or semi-fixed at break-even?

Cost classification

Break-even gets reliable only when rent and core payroll sit in monthly overhead while supplies, retail costs, fees, and laundry move with visits or revenue. Misclassify payroll or marketing, and Month 13 break-even can look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Commercial Rent	Fixed	Include $12,000 each month in overhead.	Treating rent as visit-based spend.
Center Manager	Fixed	Include $80,000 annual salary in monthly payroll.	Leaving management payroll outside break-even.
Spa Treatment Supplies	Variable	Model as 4.0% of first-year revenue, declining to 3.0% by mature year.	Using one flat dollar amount per month.
Retail Product Cost	Variable	Tie directly to retail sales per visit.	Counting retail revenue without matching product spend.
Laundry Services	Variable	Link to treatments, visits, and service volume.	Freezing laundry while daily visits rise.
Payment Processing Fees	Variable	Apply to paid revenue, starting at 2.0% in the first year.	Putting card fees in fixed overhead.
Utilities	Semi-variable	Keep the $1,500 monthly base, then watch usage as visits grow.	Assuming utilities stay flat at higher traffic.
Therapists and Instructors	Semi-fixed	Add payroll in hiring blocks as capacity expands.	Burying service payroll outside break-even.

How does break-even shift from a lean launch to a full wellness center ramp?

Scenario table

Lean launch is the tightest case, and it only reaches break-even by Month 13. As visits rise and the mix shifts toward packages, the cushion improves, though workshop pricing is still a gap in the model.

Planning assumptions only; actual results will move with visit volume, service mix, and staffing.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch	$498k	$97k	$401k	80.5%	-$126k	Still fragile; Month 13 is the first break-even point.
Base ramp	$601k	$107k	$494k	82.1%	$348k	Stabilized staffing gives the first clear profit cushion.
Full ramp	$648k	$103k	$545k	84.1%	$841k	Higher visits create the strongest cushion above break-even.

What breaks the break-even plan for this wellness center?

Stress test

The Year 1 plan needs about $498,000 a month to break even, while the current run rate is only about $62,000. That leaves a huge gap, so small hits to visits, rent, or labor matter a lot before Month 13.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$498,000	$436,000 gap	Current revenue is far below break-even.
Revenue shortfall	Monthly revenue slips 10% to about $56,000.	$498,000	$442,000 gap	A small demand miss widens the loss quickly.
Fixed-cost increase	Monthly overhead rises by $10,000.	$510,400	$448,400 gap	Extra rent or payroll pushes break-even higher.
Margin pressure	Variable expenses rise by 1 percentage point.	$504,400	$442,400 gap	Even a small margin squeeze adds real pressure.
Combined pressure	Monthly revenue slips 10%, overhead rises by $10,000, and variable expenses rise by 1 point.	$517,000	$461,000 gap	Three small hits together push losses wider.

What should you verify before you sign the lease and fund the wellness center launch?

Founder checklist

Run the opening plan against break-even before you lock the site, hire ahead, or buy equipment. The model only works if traffic, pricing, and cash can support Month 13 breakeven.

1Demand Proof200-204/day

The plan starts at 25 visits/day, so confirm the market can scale to the 200-204 visits/day needed at break-even.

2Fixed Load$16.9K/mo

Confirm you can carry $16.9k of fixed overhead plus $278k of Year 1 payroll, because rent, utilities, software, and admin hit before traffic ramps.

3Margin Check19.5% load

Test the $120 spa, $25-$30 class, $200 package, and $5 retail assumptions against the mix, because the cost stack has to leave enough margin after supplies, laundry, processing, and marketing.

4Staffing Ramp5.0 FTE

Keep the opening team at 5.0 FTE and delay semi-fixed hires, including the Month 13 meditation guide, until demand is safely above plan.

5Opening Build$268K

Budget the full $268k opening spend for buildout, equipment, tech, furnishings, and starter inventory before you commit the lease.

6Cash Cushion$570K Month 12

Do not sign if runway cannot absorb the $126k Year 1 EBITDA loss and hold the modeled $570k minimum cash in Month 12.