Yoga Studio Break-Even Analysis: $26K Monthly Revenue Target

Fixed costs $21.0K/mo Base overhead

Contribution margin 80% After variable costs

Break-even revenue $26.2K/mo Monthly target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see where the studio gets back to break-even.

Lean Base Full

Monthly revenue Revenue is the pool that has to cover variable costs and then fixed costs. $ Lower sales Higher sales Variable expenses These rise with sales, like instructor fees, marketing, booking fees, and retail cost. $ Lower costs Higher costs

Money available to cover fixed costs $16,580 $19,850 revenue - $3,270 variable expenses

Margin ratio

84%

Covers fixed costs

$4,378 short

Fixed monthly costs This is the monthly cost base the studio must cover before profit starts. $ Lean base Higher base

Break-even chart Revenue Total costs

Which yoga studio expenses are fixed, and which move with sales?

Cost classification

Break-even only works if fixed monthly overhead stays separate from costs that reduce contribution margin. Treat opening assets as capital items, not normal monthly expenses, unless the model spreads them separately.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio Rent, $5,000/month	Fixed	Add the full $5,000 to fixed monthly overhead before calculating required contribution margin.	Loading build-out, mats, props, sound equipment, furnishings, POS system, signage, or initial retail inventory into monthly rent.
Insurance, $300/month	Fixed	Add $300 to fixed monthly overhead because it does not rise with class sales in the model period.	Reducing insurance when sales dip, which understates the break-even revenue target.
Studio Manager, $5,000/month	Semi-fixed	Keep the full salary in fixed monthly overhead until staffing changes with operating scale.	Treating management pay as variable and overstating contribution margin.
Lead Instructor, $4,167/month	Semi-fixed	Include the base instructor role in fixed monthly overhead; it supports scheduled capacity before sales arrive.	Counting all instructor labor as session-linked and missing the payroll floor.
Yoga Instructor payroll, $3,750/month in the first year	Semi-fixed	Model payroll as a step that increases as class load and capacity grow.	Spreading it as a flat percent of revenue and hiding the next hiring step.
Instructor Contract Fees	Variable	Deduct the modeled revenue percentage from sales before calculating contribution margin.	Putting contract fees in overhead, which makes contribution margin look too high.
Booking Software & Payment Fees	Variable	Deduct the transaction-linked fee from revenue because it moves with bookings and payments.	Using one flat monthly software amount and missing per-sale payment drag.
Marketing & Advertising	Semi-variable	Split planned base spend from sales-linked spend so contribution margin and overhead stay clean.	Cutting all marketing from overhead, then wondering why occupancy stalls.

How does break-even shift across lean, base, and full yoga studio scenarios?

Scenario table

Higher occupancy pushes more revenue through the same rent and payroll, so break-even gets easier as the studio moves from lean to full. These are planning cases only, not guaranteed results.

Planning cases only; actual results can move with occupancy, pricing, and payroll mix.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$19.9k	$4.0k	$21.0k	80.0%	-$5.1k	Still below break-even, with a clear monthly loss.
Base studio plan	$54.9k	$9.2k	$24.5k	83.3%	$21.3k	Comfortable break-even cushion once classes fill better.
Full occupancy case	$75.3k	$11.3k	$26.8k	85.0%	$37.2k	Strong cushion above break-even, with room for growth.

What breaks the break-even plan if launch demand slips or costs rise?

Stress test

The launch plan is already short by about $5.1k a month, so small misses matter. A 10% sales dip, a 5-point margin squeeze, or a $500 rent bump all widen the gap fast, and the combined downside pushes it to about $8.1k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$24,950	$5,100 gap	Launch sales do not cover fixed payroll and rent.
Revenue shortfall	Revenue slips to $17,865.	$24,565	$6,700 gap	Low class fill widens the operating gap fast.
Fixed-cost pressure	Rent rises by $500 a month.	$25,450	$5,600 gap	Higher studio rent pushes the hurdle up.
Margin pressure	Variable expense rate rises from 20% to 25%.	$25,950	$6,100 gap	Discounts or higher instructor payouts squeeze margin.
Combined pressure	Revenue slips to $17,865, variable expenses rise to 25%, and rent rises by $500.	$25,965	$8,100 gap	Low fill plus higher costs makes break-even fragile.

Can this yoga studio clear the $26.2K monthly break-even before you sign the lease?

Founder checklist

Before you sign the lease, confirm pre-sales can cover the opening mix and the fixed load can still reach the $26.2K monthly break-even target. If the studio cannot sell into that mix early, rent and payroll will outrun cash fast.

1Pre-sales100/50/30/15

Validate demand against the Year 1 mix of 100 unlimited members, 50 class packs, 30 drop-ins, and 15 workshops before you lock the lease.

2Fixed load$12.0K/mo

Test whether the $5,000 studio rent plus $7,000 of non-payroll fixed overhead stays inside the plan, because this load sets the break-even floor.

3Payroll plan$14.0K/mo

Hold Year 1 payroll near the modeled $13,958 a month before adding staff, or labor will push break-even past the opening plan.

4Margin mix80% CM

Confirm the Year 1 mix keeps about 80% contribution margin after instructor fees, retail cost, marketing, and booking fees so fixed costs can be covered.

5Occupancy ramp45.0%

Prove the schedule can run at 45.0% Year 1 occupancy before you expand classes or headcount, since that is the first capacity test.

6Cash reserve$901K

Keep the modeled minimum cash of $901,000 in place before opening, because build-out and launch spend land before steady membership cash arrives.