Break-even and planning for vacancies
Because staffing is set by classroom, a program’s costs barely move when enrollment changes. That makes it worth knowing your break-even: the enrollment where income equals expenses.
Harbor Oak’s budget, recalculated at different enrollment levels:
| Budget basis | Children | Budgeted income | Budgeted expenses | Surplus / (deficit) |
|---|---|---|---|---|
| 70% | 45 | $865,782 | $985,111 | ($119,329) |
| 75% (Harbor Oak’s budget) | 50 | $970,441 | $988,147 | ($17,706) |
| 80% | 52 | $1,007,170 | $989,359 | $17,811 |
| 85% | 55 | $1,069,224 | $991,183 | $78,041 |
| 90% | 58 | $1,124,736 | $992,995 | $131,741 |
| 95% | 62 | $1,207,657 | $995,431 | $212,226 |
Harbor Oak breaks even at about 51 children, or 79% of capacity. Two or three children separate a deficit from a surplus. Its 75% budget shows a small deficit, which its reserves can cover. Use the MSSA Budget Builder to find the break-even enrollment for your own program.