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.
- 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.
- How to Roughly Calculate When Your SaaS Will Become Profitable (Free Excel Spreadsheet Download)
- Calculations at 10/mo (PDF, multiple pages)