Chartered Financial Analyst and business consultant specializing in fitness and membership-based small businesses.
How many students do you need to be profitable? Enter any three variables—Monthly Fixed Costs, Avg. Membership Fee, Avg. Variable Cost per Student, or Breakeven Students—to solve for the fourth.
Martial Arts School Breakeven Calculator
Martial Arts School Breakeven Formula
The breakeven formula for a martial arts school (dojo) finds the total number of students (Q) you must enroll each month for your total revenue to cover all your fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Membership Fee (P):
P = (F / Q) + V
Solve for Avg. Variable Cost (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your recurring overhead. This includes dojo rent, utilities, insurance, loan payments on equipment, and any salaried instructor pay.
- Avg. Membership Fee (P): The average monthly membership fee you charge a student.
- Avg. Variable Cost per Student (V): The costs tied directly to one student. This could include payment processing fees, belt testing/promotion materials, or any included apparel.
- Breakeven Students (Q): The total number of enrolled students you need each month to reach $0 in profit.
Related Calculators
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- Membership Breakeven Calculator
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What is a Martial Arts School’s Breakeven Point?
A **Martial Arts School’s Breakeven Point** is the exact number of enrolled students (Q) you need each month to cover all your business expenses. It’s the minimum membership base required to pay for your fixed “overhead” costs (like rent) and the variable “per-student” costs.
**Fixed Costs (F)** are your consistent monthly overhead, whether you have 10 students or 100. This is primarily your dojo’s rent, utilities, liability insurance, marketing, and any fixed salaries for instructors or staff.
**Variable Costs (V)** are the costs incurred *only* when you have an active, paying student. This is often low but includes credit card processing fees (e.g., 3% of tuition), and if you include them in the membership, the cost of belts, uniforms, or testing materials.
The **Contribution Margin** (P – V) is the profit from a single student that goes toward paying your fixed costs. If you charge (P) $150/month and your variable costs (V) are $10/month, your contribution margin is $140. This calculator finds how many $140 “profit chunks” you need to cover your total fixed costs (rent, insurance, etc.).
How to Calculate Martial Arts School Breakeven (Example)
Let’s calculate the breakeven point for a new dojo.
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Identify Monthly Fixed Costs (F):
Your dojo rent is $3,500. Insurance is $200. Utilities are $300. Marketing is $500. Your total (F) = $4,500.
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Identify Avg. Membership Fee (P):
You charge an average monthly fee of $175 per student.
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Identify Avg. Variable Cost per Student (V):
Your payment processing fee is $5. You estimate $10 per month in included materials (belts, etc.). Your total (V) = $15.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin: $175 (P) – $15 (V) = $160.
Next, divide the fixed costs by this margin:
Q = $4,500 / $160 = 28.125 -
Conclusion:
You must enroll 29 students (rounding up) just to cover your monthly business overhead. The 30th student, and every student after, is your personal profit.
Frequently Asked Questions (FAQ)
This calculator is best for analyzing your recurring *monthly* profit. You can either exclude one-time fees (like uniform sales) from this calculation, or you can average them out. For example, if you make an extra $120/year per student on gear, you could add $10 ($120/12) to your (P) to be more accurate.
You can! If you want to find the number of students needed to pay *both* your dojo’s overhead AND your personal salary, add your desired monthly salary (e.g., $5,000) to the (F) field. The calculator will then show you how many students you need to *live*, not just to break even.
You must find your *average* fee. If you have 50 students paying $120 and 50 students paying $180, your average (P) is $150. Use that average for this calculation.
Enter your (F) (e.g., $4,500), your (V) per student (e.g., $15), and a *target* number of students (Q) you plan to enroll (e.g., 50). The calculator will solve for (P), telling you the *minimum average price* (e.g., $105) you must charge per student to hit your goal.