Chartered Financial Analyst specializing in service-based small business finance.
Determine how many clients your coaching business must serve per month to cover all costs. Enter any three variables—Monthly Fixed Costs, Avg. Price per Client, Avg. Variable Cost per Client, or Breakeven Clients—to solve for the fourth.
Coaching Breakeven Calculator
Coaching Breakeven Formula
The breakeven formula for a coaching business finds the number of clients (Q) it must serve for total monthly revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Price per Client (P):
P = (F / Q) + V
Solve for Avg. Variable Cost per Client (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead (e.g., CRM software, insurance, website, marketing budget, own salary).
- Avg. Price per Client (P): Your average revenue from one client for the period (e.g., monthly retainer).
- Avg. Variable Cost per Client (V): The direct costs per client (e.g., assessment tools, per-client software fees, payment processing fees).
- Breakeven Clients (Q): The total number of clients you need to serve to reach $0 in monthly profit.
Related Calculators
- Consulting Breakeven Calculator
- Freelancer Breakeven Calculator
- Service Business Breakeven Calculator
- Course Breakeven Calculator
What is a Coaching Breakeven Point?
A **Coaching Breakeven Point** is the number of clients (Q) you must be actively serving in a month to cover your total costs. This is the minimum client load you need to achieve to start being profitable.
**Fixed Costs (F)** are your monthly “overhead.” These are the expenses you pay regardless of whether you have 1 client or 30. This includes your business insurance, scheduling software (like Calendly), CRM, website hosting, email marketing service, and a portion of your marketing budget.
**Variable Costs (V)** are the costs tied *directly* to each client. For coaches, this is often small. It might include payment processing fees (e.g., 3% of the client’s payment), costs for specific assessment tools (like DiSC), or any materials you ship to them.
The **Contribution Margin** (P – V) is the profit from a single client that goes toward paying off your large monthly fixed costs. This calculator finds how many clients you need to cover your total overhead. Every client signed *after* this point generates your net profit.
How to Calculate Coaching Breakeven (Example)
Let’s calculate the breakeven point for a business coach.
-
Identify Monthly Fixed Costs (F):
The coach has $2,200 in monthly software subscriptions, insurance, and marketing.
-
Identify Avg. Price per Client (P):
The average monthly retainer per client is $500.
-
Identify Avg. Variable Cost (V):
The payment processing fees and tool costs average $50 per client.
-
Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per client: $500 (P) – $50 (V) = $450.
Next, divide the fixed costs by this margin:
Q = $2,200 / $450 = 4.89 -
Conclusion:
The coach must have 5 clients (rounding up) each month to cover all costs and start making a profit.
Frequently Asked Questions (FAQ)
Yes. You should pay yourself a regular salary (e.g., $5,000/month). This salary should be included in your **Fixed Costs (F)**. The breakeven point will then tell you how many clients you need to cover all costs *including* your own pay.
You can change the unit (Q) to “Sessions”. (F) would be your *monthly* fixed costs, (P) would be your price per session, (V) would be your variable cost per session, and (Q) would be the total number of *sessions* you must conduct per month to break even.
If you have a consistent monthly ad budget (e.g., $500/mo), treat it as a **Fixed Cost (F)**. If you pay per lead or acquisition (CPA), you can treat the ad cost *per client* as a **Variable Cost (V)**.
Enter your (F) (e.g., $2,200), (V) (e.g., $50), and a realistic number of clients (Q) you can handle (e.g., 8). Solve for (P): `P = ($2,200 / 8) + $50 = $275 + $50 = $325`. This means you must charge at least $325 per client just to break even.