Free calculator for home care owners
How many clients does a home care agency need to break even?
Caregiver wages rise and fall with hours, so each client leaves a thin margin after wages. Break-even is the number of average clients that covers the office, coordinators and insurance.
Break-even point
-
clients a month to cover every cost
Profit at today's level
-
per month, before owner pay
Cushion above break-even
-
how many you could lose and still cover costs
The starting numbers are an example for a home care agency. Replace them with yours.
The worked example
Each client brings in $3,400 a month and costs $2,450 to serve. That leaves $950 toward fixed costs of $28,000 a month. Divide one by the other and you need 30 clients to break even. Every client past that adds $950 to profit.
Ways to lower break-even in a home care agency
- Cut overtime by recruiting caregivers ahead of demand.
- Keep travel time low by grouping clients by area.
- Review bill rates every year against caregiver wage rates.
Get this done for you every Monday
One Page CFO reads your QuickBooks, builds your 13-week cash forecast and your one-page report, and a CFO checks both. $500 a month.