The break-even point is the revenue or unit volume where your total income equals total costs, no profit, no loss. Calculate it by dividing your total fixed costs by your gross profit margin (for revenue break-even) or by your contribution margin per unit (for unit break-even). Every small business owner should know this number before making any pricing, hiring, or expansion decision.
Break-Even Calculator for SaaS
Pre-filled with real saas industry benchmarks
SaaS businesses have an unusual cost structure: very low marginal cost per customer (hosting, support) but high upfront fixed costs (engineering, infrastructure, sales). Your break-even is the subscriber count where monthly recurring revenue covers your burn rate. Most SaaS companies take 18 to 36 months to reach break-even, and the key metrics are CAC (customer acquisition cost), LTV (lifetime value), and MRR growth rate. This calculator is pre-filled with typical SaaS benchmarks.
Break-Even Calculator
Pre-filled with saas industry defaults. Edit any field to use your real numbers.
Break-Even Units
47
Break-Even Revenue
$23,500
Contribution Margin
90.0%
SaaS industry average margin: 90.0% gross margin with 10.0% COGS.