Every studio owner should know their break-even number — the monthly revenue where you stop losing money. Here is the simple calculation.
Fixed monthly costs
Add up: rent, insurance, software, utilities, loan repayments, and any salaried staff. This is your baseline cost whether you have 0 or 200 members.
Variable costs per class
Instructor pay per class, cleaning, consumables. Multiply by number of classes per month.
Break-even formula
Break-even revenue = Fixed costs + (Variable cost per class × classes per month)
Example
Rent: $4,000. Insurance: $250. Software: $200. Utilities: $400. Fixed staff: $2,000. Total fixed: $6,850. Variable: $50/class × 80 classes = $4,000. Break-even: $10,850/month.
How software affects break-even
Transaction fees increase your variable costs. A studio processing $15k/month pays ~$4,500/year in Mindbody transaction markups — that is $375/month added to your break-even. KOLLABO OS eliminates this entirely with zero transaction markup.