Today I started researching a potential opportunity for a SaaS (Software as a Service) application. I was curious to see how much I can/should charge per month/year in order to be profitable sooner.
Actually, I should've done this before I started working on qSandbox service. That would've given me a better idea what to expect in terms of profitability. At least I tracked my time.
Assumptions
- The calculations don't take into account any free users or free trials
- Assuming growth at about 10 new paying users per month.
- Doesn't take into account churn rate (or the new customers compensate for that)
- Calculations are using payments per month
- Minimal initial investment to get the application created - MVP (Minimal Viable Product)
- Minimal budget for some support/maintenance per month
- Payment Gateway fees 3%
- Doesn't include any new customers acquired by affiliates
- Doesn't include currency so assume it's either USD or EUR.
Let me know if you have ideas how to improve the spreadsheet.
Downloads
- How to Roughly Calculate When Your SaaS Will Become Profitable (Free Excel Spreadsheet Download)
- Calculator (in Google Spreadsheets). Make your own copy.
https://docs.google.com/spreadsheets/d/15DKH250EoMiB_0sMJCszmIWA1PHdilwR/edit#gid=1930998227 - Calculations at 10/mo (PDF, multiple pages)
Related
- http://andrewchen.co/the-easiest-spreadsheet-for-churn-mrr-and-cohort-analysis-guest-post/
- http://www.forentrepreneurs.com/saas-economics-1/
- http://andrewchen.co/how-to-create-a-profitable-freemium-startup-spreadsheet-model-included/
Disclaimer: The content in this post is for educational purposes only. Always remember to take a backup before doing any of the suggested steps just to be on the safe side.
Referral Note: When you purchase through a referral link (if any) on this page, we may earn a commission.
If you're feeling thankful, you can buy me a coffee or a beer
