Yoga Retreat Break-Even Analysis: $855K Monthly Revenue Target

Break-Even Metric Cards

Fixed costs $71.4K/mo Committed monthly base

Contribution margin 83.5% After variable costs

Break-even revenue $85.5K/mo Monthly revenue target

Break-even timing Month 1 Launch month

Break-Even Calculator

Break-even calculator

Test monthly room revenue, direct costs, and fixed overhead against break-even.

Lean Base Full

Monthly revenue Higher revenue creates more room for fixed costs. $ Lower sales Higher sales Variable expenses These are direct costs that move with sales. $ Lower costs Higher costs

Money available to cover fixed costs $179,000 $214,000 revenue - $35,000 variable expenses

Margin ratio

84%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead contribution must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which retreat expenses stay fixed, and which move with bookings?

Cost classification

Your break-even only works if fixed commitments and guest-linked costs sit in the right buckets. Rent and core payroll set the monthly hurdle, while COGS, supplies, and usage-based utilities move with bookings and sales.

Expense	Cost	Break-Even Treatment	Common Mistake
Property Lease/Mortgage ($25,000/month)	Fixed	Include the full monthly amount in fixed overhead from Month 1.	Don’t tie rent to occupancy.
Utilities ($4,000/month)	Semi-variable	Model a base load, then layer in guest-driven usage as occupancy rises.	Don’t treat all utility usage as fixed.
Property Insurance ($1,500/month)	Fixed	Include the monthly premium in fixed overhead from Month 1.	Don’t spread insurance only across booked guests.
Food & Beverage COGS (8.0% in first year)	Variable	Apply the percentage to related food and beverage revenue as bookings grow.	Don’t count guest meals as overhead.
Spa & Boutique COGS (4.0% in first year)	Variable	Match the percentage to spa and boutique sales, not total room revenue.	Don’t apply it to room revenue only.
Marketing & PR (3.0% in first year)	Semi-variable	Keep a launch and sales-push allowance, then scale spend with demand goals.	Don’t ignore opening-period promotion needs.
Retreat Guest Supplies (1.5% in first year)	Variable	Apply the percentage per booking because supplies rise with guest stays.	Don’t bury guest supplies in office supplies.
Wages and Salaries ($412,500/year, about $34,375/month in first year)	Semi-fixed	Include committed staffing before full occupancy, then add roles in planned steps.	Don’t model all payroll as per guest.

How does break-even shift from a lean retreat to a full retreat?

Scenario table

The full format has the widest break-even cushion because revenue rises faster than variable costs, while the lean format carries the most risk. Base sits in the middle with a solid profit buffer.

These are planning assumptions, not guarantees; actual results will move with occupancy, pricing, and cost control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean retreat, Year 1 mix	$2,238k	$369k	$714k	83.6%	$1,155k	Thinest cushion; a small demand dip can cut profit fast.
Base retreat, Year 3 mix	$3,294k	$478k	$770k	85.5%	$2,046k	Healthy cushion; fixed costs stay well covered at this mix.
Full retreat, Year 5 mix	$3,918k	$490k	$770k	87.5%	$2,658k	Strongest buffer; this setup handles soft demand better.

What pushes this yoga retreat past break-even?

Stress test

The base plan stays well above break-even, but the cushion gets thinner if bookings soften, overhead rises, or guest-level costs run hot. Weak early deposits, high food quotes, paid ads above plan, and late cancellations are the clearest warning signs.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$855k	$1.38m cushion	Strong cushion, so fixed costs set the floor.
Revenue shortfall	Revenue drops 20% to about $1.79m.	$855k	$935k cushion	Weak early deposits can shrink the cushion fast.
Fixed-cost increase	Fixed costs rise 15% to about $821k.	$983k	$1.26m cushion	Higher lease and overhead leave less room for slips.
Margin pressure	Variable expenses rise 5 points to 21.5%.	$910k	$1.33m cushion	Food quotes and paid ads above plan squeeze profit.
Combined pressure	Revenue falls 20% and fixed costs rise 15%.	$1.05m	$743k cushion	Late cancellations plus higher overhead cut the cushion hard.

Is the yoga retreat ready to lock the venue and full launch budget?

Founder checklist

The model breaks even by Month 1, but don’t treat that as a green light. Verify the 26-room mix, the 55% Year 1 occupancy path, and the $513K cash floor before you sign the venue or expand payroll.

1Room Mix26 rooms

Confirm the 10/5/8/3 room mix can support the Year 1 55% occupancy path, or the retreat will miss the demand needed to fill fixed room nights.

2Fixed Base$37.5K/mo

Check that lease, utilities, insurance, admin, security, and core payroll still fit the first-year cash plan, because that fixed base starts before food and extras.

3Break-Even$855K

Do not sign large deposits until the booking plan can credibly reach the $855K break-even revenue level, because that is what makes the fixed load believable.

4Cash Floor$513K

Keep at least the $513K minimum cash cushion through Month 4, since that is the trough before the model starts to recover.

5Meal COGS8.0% COGS

Lock meal vendor quotes at or below the modeled 8.0% Food & Beverage COGS so package margin does not get squeezed by every guest stay.

6Staff RampMonth 13

Delay the assistant yoga instructor until demand is proven, and keep the $1.15M setup budget from drifting, because extra build-out hits cash before full occupancy does.