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If you’ve ever felt like your practice is doing well but were still left wondering, “Are we actually doing okay?” you’re not alone. One of the most important numbers you can know as a veterinary practice owner isn’t your revenue, or even your profit margin; it’s your make-or-break number.

So, what exactly is it?

In simple terms, your make-or-break number is the amount of revenue your practice needs to bring in each month (or week) just to cover your essential expenses and keep the doors open. It’s your financial baseline, the number where you’re not losing money, but you’re not really making any either. It’s the breakeven point that tells you, “This is what we need to earn to keep things steady.”

Think of it like this: imagine your practice is a car. The make-or-break number is the speed you need to go to keep moving forward without rolling backwards. Anything under that speed and you’re stalling out. Anything above it? That’s where things start to feel a little smoother.

Why does this number matter so much?

Because knowing your make-or-break number gives you clarity, it gives you a target to aim for, and a reason behind the hustle.

When you know that your break-even point is, say, $120,000/month in revenue, it suddenly becomes easier to plan your schedule, set goals, and even make decisions about staffing, hours, or equipment purchases. It turns vague stress into a measurable strategy.

But even more importantly, it helps you bring your team into the bigger picture. When the make-or-break number isn’t just something you keep in your head, but something you share and talk about, it creates a culture of transparency and shared purpose. Your team isn’t just clocking in and out; they’re part of the mission to help the practice thrive.

When everyone understands why you’re pushing for a certain number of appointments or why inventory costs matter, it can shift the conversation. It moves from pressure to purpose.

Here’s what else it can help with:
Scheduling smarter: You can reverse-engineer how many appointments, procedures, or wellness visits you need to hit that goal.
Team engagement: Your team can feel more involved and motivated when they understand what the practice needs to thrive (not just survive).
Business confidence: Instead of hoping you’re doing okay, you’ll know when you’ve hit your mark, and when you’re exceeding it.
Better decisions: If you’re falling short, you can pivot early, maybe by adjusting fees, improving efficiency, or marketing certain services.

How is it calculated?

While the nitty-gritty math might feel intimidating, the basic idea is simple:

Start by adding up all your fixed costs (think rent, payroll, software, utilities, expenses that don’t fluctuate much month to month). Then factor in your variable costs (inventory, lab fees, etc.) and your average gross profit margin. That gives you the point where your income equals your outgo, your make-or-break number.

And if that all still sounds a little foggy? That’s okay. The key takeaway is this: when you know the number, you need to hit each month just to stay afloat, you give yourself the power to be proactive instead of reactive.

The best part?

Once you know your make-or-break number, you can start tracking progress, celebrating wins, and building from a place of confidence instead of chaos. It becomes your North Star, steady, reliable, and uniquely yours.

And when you share that North Star with your team, they can help you steer.

Written by Jennifer, CVBL