Break-Even Analysis
The Formula
Break-Even Dogs/Month = Fixed Costs / (Average Ticket - Variable Cost Per Dog)
The denominator is the contribution margin — what each dog appointment contributes toward covering fixed costs after variable costs are paid.
Inputs
[Agent prompt: Pull these values from ongoing-expenses.md and breed-pricing-matrix.md once both files are finalized.]
| Variable | Value | Source |
|---|---|---|
| Fixed costs per month | $[X,XXX] | ongoing-expenses |
| Average ticket (blended) | $[XX] | breed-pricing-matrix |
| Variable cost per dog | $[XX] | ongoing-expenses (per-dog section) |
| Contribution margin per dog | $[XX] | Ticket − Variable cost |
Break-Even Calculation
| Metric | Calculation | Value |
|---|---|---|
| Dogs per month to break even | Fixed costs / Contribution margin | [XX] dogs/month |
| Dogs per day (22 operating days) | Break-even dogs / 22 | [X.X] dogs/day |
| % of capacity this represents | Break-even dogs / Max capacity | [XX]% |
| Months to reach break-even (from projection) | From revenue-projections.md | Month [X] |
Break-Even Sensitivity Table
This table shows how break-even changes as average ticket price or fixed costs shift. Use it to stress-test assumptions.
[Agent prompt: Fill in this table with calculations once input values are confirmed. Show 3 ticket price scenarios × 3 fixed cost scenarios.]
| Fixed Costs \ Avg Ticket | $[XX] (low) | $[XX] (base) | $[XX] (high) |
|---|---|---|---|
| $[X,XXX] (optimistic) | [XX] dogs/mo | [XX] dogs/mo | [XX] dogs/mo |
| $[X,XXX] (base case) | [XX] dogs/mo | [XX] dogs/mo | [XX] dogs/mo |
| $[X,XXX] (conservative) | [XX] dogs/mo | [XX] dogs/mo | [XX] dogs/mo |
Key Insight Prompts
[Agent prompt: After filling in the numbers, answer these questions in this section.]
How many days does it take to break even each month? [Calculation: break-even dogs / dogs per day = X days of full bookings per month]
What average ticket price makes us profitable at 50% capacity? [Calculation: show the ticket price required to cover fixed costs at half of max dog count]
What is the impact of adding a second groomer?
- Fixed costs increase by: $[X,XXX]/month (additional payroll + overhead)
- Capacity increases by: [XX] dogs/month
- New break-even: [XX] dogs/month
- This hire makes sense when monthly demand consistently exceeds: [XX]% of current capacity
Runway
If we launch with $[XX,XXX] in working capital and operate at the conservative scenario:
| Month | Net Cash Flow | Cumulative Cash | Notes |
|---|---|---|---|
| 1 | ($[XXX]) | $[XX,XXX] | |
| 2 | ($[XXX]) | $[XX,XXX] | |
| 3 | ($[XXX]) | $[XX,XXX] | |
| 4 | $[XXX] | $[XX,XXX] | Break-even reached |
| 6 | $[XXX] | $[XX,XXX] | |
| 12 | $[X,XXX] | $[XX,XXX] |
Minimum working capital needed to survive to break-even: $[XX,XXX]