AFH Business Planning: Revenue, Expenses, and Break-Even

A workable Adult Family Home plan is mostly a set of assumptions you can test: rates, occupancy, staffing, and a complete expense list. The calculators on this site are worksheets for those tests, not a business plan template or a substitute for an accountant or licensing consultant.

Revenue vs profit

Revenue is gross collections from resident rates. Profit is revenue minus expenses. Use the revenue calculator when you only need top-line capacity math. Use the profit calculator when you are ready to subtract operating costs.

Main expense groups

• Staffing and payroll burden
• Food and resident supplies
• Housing: rent, mortgage, utilities, insurance, maintenance
• Transportation and other operating overhead
• Taxes and professional services, which you should add if they apply

How many residents to break even?

Break-even residents ≈ monthly fixed expenses ÷ (monthly rate − variable cost per resident). If that number is higher than licensed beds, the assumptions do not cover costs at full occupancy. Run the break-even calculator with costs you can document rather than a target occupancy you hope for.

Keep the plan honest

Change one assumption at a time. Print or save the result with the date and inputs. Do not treat a favorable scenario as a forecast. Local licensing, reimbursement, and labor rules can make two homes with the same bed count look very different.