Membership Plan Pricing and Breakeven Calculator

Takes the owner's prices and costs and shows what each membership plan earns per member per month, how many members are needed to cover the program's costs, and how much money is lost if current full-price clients switch to a cheaper plan.

Spa or massageBeauty and Personal Care✓ Checkedv1.0

Before and after

BEFORE · what the owner typed

Hi its Leila Guerrero at Cloverwell Massage Studio, 5044 Bluewell St, Hazelhollow. Want to start memberships for our 60 min massage. Regular price is $100. Plan A would be $85 a month for one 60 min massage. Plan B $160 a month for two. I pay my therapists Lee Foley and Levi Jacobs $45 a session. Supplies and laundry about $6 a session. Card fee is 3%. The billing software is $60 a month. About 12 of my regulars come once a month at full price now and might switch. I want the program to add $250 a month profit. Assume everyone uses all their sessions.

AFTER · what the skill produced

Membership breakeven for Cloverwell Massage Studio

Numbers used

Regular 60 min massage: $100
Plan A: $85 per month, 1 session
Plan B: $160 per month, 2 sessions
Therapist pay (Lee Foley, Levi Jacobs): $45 per session
Supplies and laundry: $6 per session
Card fee: 3%
Billing software: $60 per month
Possible switchers: 12 regulars, once a month at $100
Profit goal: $250 per month
Assumption: every member uses every included session

Per session at the regular price
$100 - $3.00 card fee - $45 therapist - $6 supplies = $46.00

Per member per month

Plan A: $85 - $2.55 card fee - $45 therapist - $6 supplies = $31.45. That is $85 per session, a 15% discount off $100.
Plan B: $160 - $4.80 card fee - $90 therapist - $12 supplies = $53.20. That is $80 per session, a 20% discount off $100.

Breakeven, billing software only ($60)

Plan A: $60 / $31.45 = 1.91, so 2 members
Plan B: $60 / $53.20 = 1.13, so 2 members

Switcher cost
A regular who moves from $100 to Plan A brings in $46.00 now and $31.45 after, a loss of $14.55 per month. 12 switchers x $14.55 = $174.60 per month. (Assumes all 12 pick Plan A, the cheaper plan.)

Breakeven for the full goal
Needed each month: $60 software + $174.60 switcher cost + $250 profit goal = $484.60

Plan A: $484.60 / $31.45 = 15.41, so 16 new members (16 x $31.45 = $503.20)
Plan B: $484.60 / $53.20 = 9.11, so 10 new members (10 x $53.20 = $532.00)

Summary
Plan B earns $53.20 per member against $31.45 for Plan A, so you need fewer Plan B members to hit your goal. Plan A earns less per session than your regular price, so every regular who switches to it costs you money unless they add visits. We recommend marketing to new clients first and watching how many regulars switch. Please confirm recurring billing and sales tax rules with a local accountant or attorney before launch.

Questions for the owner

Do unused sessions roll over, expire, or get refunded? This changes the numbers if members skip sessions.
How many open appointment hours per month do your therapists have? 16 Plan A members need 16 hours, and 10 Plan B members need 20 hours.
Will you charge sales tax on memberships? Please confirm with your accountant.

What it does

Use it when: Use when a spa or massage business wants to price a membership plan and find how many members it needs to break even, such as 'what should I charge for a monthly massage membership,' 'how many members do I need,' or 'will a membership lose me money.'