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.

 

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