Running Capoeira Classes requires managing a fixed monthly overhead around $12,000 to $13,000, heavily weighted toward payroll and studio rent Your model shows strong initial performance, achieving breakeven in just 1 month (January 2026) and generating $239,000 in EBITDA in the first year The core financial challenge is scaling student enrollment while keeping variable costs-like digital marketing (80% of revenue in 2026) and payment fees (30%)-in check Focus on maximizing the 22 average billable days per month to increase the 40% initial occupancy rate This guide details the seven critical running costs, from the $3,800 monthly studio rent to the $65,000 annual salary for the Head Instructor Mestre, ensuring you budget defintely for sustainability
7 Operational Expenses to Run Capoeira Classes
#
Operating Expense
Expense Category
Description
Min Monthly Amount
Max Monthly Amount
1
Studio Rent
Fixed Overhead
The largest single fixed cost is Studio Rent at $3,800 monthly, requiring clear lease terms.
$3,800
$3,800
2
Instructor Payroll
Fixed Overhead
Wages start at roughly $6,875 per month covering the Mestre and five assistant instructors.
$6,875
$6,875
3
Utilities and Internet
Fixed Overhead
Budget $450 monthly for Utilities and Internet, tracking usage as class density increases HVAC needs.
$450
$450
4
Marketing and Acquisition
Variable Cost
Digital Marketing starts at 80% of revenue in 2026 to drive initial enrollment; this cost scales directly with sales.
$0
$0
5
Software and Systems
Fixed Overhead
Allocate $160 monthly for Studio Management Software to handle scheduling and billing efficiently.
$160
$160
6
COGS and Event Supplies
Variable Cost
Costs of Goods Sold for uniforms and equipment total 70% of revenue in 2026, tied directly to merchandise sales.
$0
$0
7
Insurance and Compliance
Fixed Overhead
Liability Insurance is $220 monthly, plus $200 monthly for Accounting and Legal services; this is defintely mandatory.
$420
$420
Total
All Operating Expenses
$11,705
$11,705
What is the minimum total monthly operating budget required to sustain Capoeira Classes before achieving profitability?
The minimum monthly budget needed just to keep the Capoeira Classes studio open before making a dime is around $5,650, driven primarily by rent and the first instructor's pay. This baseline burn rate establishes the immediate revenue target you must hit to cover operations, which you can explore further in how to write a business plan for this kind of venture, like How To Write A Capoeira Classes Business Plan?
Baseline Monthly Burn
Fixed overhead sits at $4,050 monthly.
This covers estimated rent of $3,500 for a modest studio.
Software subscriptions and liability insurance add another $550.
Minimum initial payroll for one part-time instructor is budgeted at $1,600.
Controlling Initial Costs
Your biggest variable lever is instructor compensation structure.
Consider paying per student instead of a fixed stipend initially; it's defintely safer.
Delay non-essential software until you clear $7,000 in monthly revenue.
If you can secure a space for $2,800, you cut the burn rate by $700 instantly.
Which two recurring cost categories represent the largest percentage of total monthly expenses?
Studio Rent and Instructor Wages represent your two primary recurring costs, totaling $10,675 monthly before accounting for other overhead, so controlling these variable and fixed loads is critical for reaching profitability quickly; if you're mapping out how to structure this business, reviewing how to write a business plan for Capoeira Classes might help clarify initial assumptions.
Studio Rent Impact ($3,800)
Rent is a fixed cost of $3,800 monthly.
This cost requires high class volume to cover.
Analyze facility use outside peak hours.
Subleasing space can reduce your net outlay.
Initial Instructor Wages ($6,875)
Initial wages are set at $6,875 monthly.
Wages scale directly with the number of classes run.
Tie instructor compensation to enrollment growth.
Keep initial staffing lean, maybe 2 lead instructors.
How many months of cash buffer are needed to cover fixed costs if enrollment targets are missed by 50%?
If enrollment targets are missed by 50%, you need enough working capital to cover the resulting shortfall in operating cash flow until recovery. Given the stated $875k minimum cash requirement, this figure likely represents the runway needed to survive a significant downturn, potentially covering 6 to 12 months of negative cash flow while you course-correct.
Anchoring Your Runway
You must know your monthly fixed costs to determine how long $875k lasts when revenue drops by half.
If your fixed burn rate is $100k/month, missing targets by 50% means you burn $50k extra monthly, using up that reserve quickly.
Aim for at least 9 months of coverage minimum; anything less is defintely risky.
Bridging Slow Growth
A 50% enrollment miss means you are operating at 50% of expected revenue while fixed costs remain high.
Seasonal dips, maybe around summer holidays, require you to manage working capital proactively.
If onboarding takes 14+ days, churn risk rises, directly impacting that crucial monthly recurring revenue.
Focus on immediate cash generation levers, like annual pre-payments, to stabilize the base.
If revenue drops 25% below forecast, what immediate operational costs can be reduced without impacting class quality?
If revenue for Capoeira Classes drops 25% below forecast, you must immediately slash discretionary spending, specifically targeting the 80% of revenue currently allocated to Digital Marketing and freezing any non-essential personnel additions like the Assistant Instructor FTE.
Immediate Variable Cuts
Pause all paid advertising campaigns instantly.
Marketing spend, at 80% of revenue, is the largest controllable cost.
Recalculate Customer Acquisition Cost (CAC) based on current membership retention.
Freeze the hiring process for the Assistant Instructor FTE position.
Convert any planned overtime for current instructors to straight time only.
Delay non-essential facility upgrades planned for the next 60 days.
Confirm all utility contracts are on the lowest possible tier; this is defintely important.
Key Takeaways
The minimum total monthly operating budget required to sustain classes before profitability is approximately $12,055, enabling breakeven to be achieved within the first month of operation.
Studio Rent ($3,800/month) and initial Instructor Wages ($6,875/month) are the two recurring cost categories that represent the largest share of the required fixed monthly expenses.
The primary financial challenge involves scaling enrollment efficiently while rigorously controlling high variable costs, such as Digital Marketing (80% of revenue) and COGS (70% of revenue).
If revenue forecasts fall short, operational costs like Digital Marketing or non-essential hiring are the most immediate discretionary expenses available for reduction to preserve cash flow.
Running Cost 1
: Studio Rent
Rent is Fixed Burn
Studio rent is your biggest fixed drain, hitting $3,800 monthly. Before signing anything, you must lock down the exact square footage and understand every clause in that lease agreement. This number sets your baseline burn rate, defintely.
Inputs for Rent Budget
This $3,800 covers the physical space for movement, music, and community building. To budget this accurately, you need the quoted monthly rate, the total square footage, and the length of the lease commitment. It's the foundation supporting all instructor payroll and utility costs.
Need exact quoted rate.
Confirm usable square footage.
Understand escalation clauses.
Managing Space Costs
Reducing this major fixed cost requires looking outside prime real estate areas. If you can secure a multi-year lease now, you might lock in better rates than waiting until 2026. Avoid signing leases that don't allow subleasing unused space if class density stays low initially.
Negotiate multi-year terms.
Check subleasing permissions.
Factor in build-out costs.
Rent vs. Variable Costs
Since rent is fixed at $3,800, every new student above break-even directly improves margin, unlike variable costs like merchandise (COGS at 70% of revenue). Focus on filling slots quickly to cover this base payment before relying on high acquisition spending planned for 2026.
Running Cost 2
: Instructor Payroll
Initial Payroll Load
Your initial fixed payroll commitment starts at $6,875 per month. This covers the Head Instructor Mestre at a $65,000 annual salary and 0.5 FTE (Full-Time Equivalent) for an Assistant Instructor, whose full-time rate is based on a $35,000 annual benchmark. This is your baseline personnel cost before adding taxes or benefits.
Payroll Inputs
This estimate is based on gross wages only, not including employer payroll taxes (FICA, unemployment) or benefits like health insurance. You must multiply the $65,000 Mestre salary and the prorated Assistant wage by your local tax and benefits burden, which can easily add 20% to 30% on top of the base pay. This payroll is a crucial fixed cost, rivaling rent.
Mestre annual salary: $65,000
Assistant FTE allocation: 0.5
Base monthly cost: $6,875
Managing Staff Costs
To keep this cost low initially, avoid hiring full-time staff too soon. Use the 0.5 FTE allocation strategically, perhaps by structuring the Assistant role as contract work paid per class until enrollment justifies a full-time salary. Remember, adding just one more full-time instructor at the $35,000 level immediately adds $2,916 per month to fixed overhead.
Delay benefit packages.
Use performance-based bonuses.
Structure initial roles as contractors.
Payroll as Fixed Cost
Instructor Payroll, starting at $6,875 monthly, functions as a primary fixed overhead, similar to your $3,800 studio rent. If class revenue doesn't cover these baseline personnel costs quickly, you risk burning cash fast. You defintely need tight control over scheduling utilization to justify these salaries.
Running Cost 3
: Utilities and Internet
Utilities Budget Target
Set your initial monthly budget for Utilities and Internet at $450. This cost isn't fixed; watch usage spikes, especially when class density pushes your Heating, Ventilation, and Air Conditioning (HVAC) system harder. Over-budgeting slightly helps manage these demand fluctuations.
Cost Inputs
This $450 estimate covers electricity, gas, water, and broadband access for the studio. Inputs are square footage and local utility rates. The main driver is HVAC load relative to student count, not just standard office use. This cost is a key fixed overhead component.
Square footage of studio space.
Local utility rate structures.
Estimated class occupancy load.
Usage Control
Managing utility spend means smart scheduling and equipment use. Avoid running high-demand HVAC during off-hours or when classes are small. Negotiate internet service tiers based on actual required bandwidth, not just the highest advertised speed you think you need.
Audit HVAC settings monthly.
Bundle internet/phone services.
Check for off-peak rate plans.
Density Impact
If you run back-to-back full classes, expect utilities to creep past $450 due to increased cooling demands. Track utility spend per student session to spot when operational density starts eating into contribution margin; this is defintely a variable cost in disguise.
Running Cost 4
: Marketing and Acquisition
Acquisition Cost Burn
Your digital ad spend is projected to eat 80% of revenue in 2026 just to get students in the door. You must defintely manage Customer Acquisition Cost (CAC) aggressively, or you won't cover fixed overhead like the $3,800 studio rent and instructor payroll.
Budgeting Ad Spend
This variable cost covers paid ads on social platforms to find new members for the Capoeira classes. To budget this, you need projected monthly revenue for 2026, because the cost is set at 80% of that figure. If you project $15,000 in revenue that year, expect $12,000 dedicated to ads.
Projected 2026 monthly revenue.
Target Cost Per Acquisition (CPA).
Enrollment goal volume.
Lowering Acquisition Rate
Burning 80% on acquisition isn't a long-term model; the goal is to lower this percentage fast by improving student lifetime value (LTV). Focus on turning those initial paid sign-ups into loyal members who bring friends. High retention quickly lowers the effective CAC ratio.
Improve student retention rates.
Boost word-of-mouth referrals.
Test ad creative constantly.
Margin Squeeze Check
If your Cost of Goods Sold (COGS) for uniforms and supplies is 70% of revenue in 2026, this 80% marketing spend creates a massive margin squeeze. You're left with almost nothing to cover $10,515 in fixed monthly costs before even considering software or utilities.
Running Cost 5
: Software and Systems
Software Budget Set
You need dedicated software for operations. Budgeting $160 monthly covers essential Studio Management Software for scheduling, billing, and student outreach. This tool keeps administrative drag low so instructors can focus on teaching Capoeira.
System Cost Details
This $160 monthly expense pays for core functions like member sign-ups, recurring payment processing, and automated class reminders. It's a small fixed cost compared to $3,800 rent or $6,875 instructor payroll. You need to select a system that scales without massive per-user fees.
Handles recurring membership billing
Manages class schedules
Tracks student communication history
Managing Software Spend
Since this cost is low, optimization isn't about slashing it, but ensuring you use all features paid for. Avoid paying for modules if you only need scheduling and billing; that's defintely a common trap. A common mistake is using spreadsheets past 50 members; that inefficiency costs more than $160.
Verify included transaction fees
Audit unused premium features
Look for annual discount options
Operational Control
Having reliable software prevents operational chaos as you grow past initial sign-ups. This system directly supports your recurring revenue model by ensuring accurate monthly billing collection from students. It's the backbone for predictable cash flow management.
Running Cost 6
: COGS and Event Supplies
COGS Weight
Your Cost of Goods Sold (COGS) structure is heavily weighted toward physical items. By 2026, expect COGS for uniforms, equipment, and grading supplies to consume 70% of total revenue. This high percentage means merchandise sales and event participation defintely dictate your gross margin health.
Input Needs
This 70% COGS figure covers all direct costs associated with student gear and event materials. To forecast this accurately, you need projected unit sales for uniforms and equipment multiplied by supplier quotes. Also factor in costs for belts or materials used during grading ceremonies. It's a direct variable cost tied to student volume.
Project uniform unit sales
Get current supplier quotes
Estimate event material usage
Margin Control
Managing 70% COGS requires tight inventory control and strategic purchasing. Since marketing is already high at 80% of revenue in 2026, margin improvement must come from COGS cuts. Negotiate bulk discounts with uniform suppliers after hitting 100+ members. Avoid overstocking specialized equipment that doesn't move fast.
Seek volume tier pricing early
Bundle gear with premium fees
Track inventory shrinkage closely
Profit Focus
Because COGS is so high, focus on driving membership fees rather than relying on merchandise markups for profit. If membership revenue covers fixed costs like the $3,800 rent and payroll expenses, merchandise becomes a lower-risk revenue stream instead of a primary profit center.
Running Cost 7
: Insurance and Compliance
Compliance Fixed Cost
Your mandatory costs for insurance and basic compliance total $420 per month. This covers necessary liability protection and essential accounting and legal support required to operate legally. This cost is fixed, meaning it doesn't change whether you have 10 students or 100.
Compliance Breakdown
These compliance expenses are non-negotiable fixed overhead. Liability Insurance costs $220 monthly to protect against accidents during classes. You also budget $200 per month for Accounting and Legal services, which handles filings and contracts. Here's the quick math: $220 plus $200 equals $420.
Insurance covers physical risk.
Legal covers paperwork and structure.
Managing Fixed Compliance
Reducing these fixed compliance costs is tough without cutting corners, which I defintely advise against. You can optimize the legal spend by bundling services or negotiating annual retainers instead of hourly rates. Avoid letting basic bookkeeping slide; penalties cost way more than $200/month.
Negotiate annual legal retainers.
Bundle software and compliance quotes.
Compliance Budget Weight
At $420 per month, this compliance overhead is small compared to the $3,800 rent and $24,375 estimated payroll. However, if you start with only 20 members paying $150 each ($3,000 revenue), this compliance cost eats 14% of your total revenue before rent is even considered.
