For a SaaS business, break-even analysis answers one question: how many paying customers do I need to cover my fixed costs? The math is simpler than it looks.
The SaaS break-even formula
Break-even customers = Fixed monthly costs ÷ (Subscription price − Variable cost per customer)
Variable costs per SaaS customer are typically small: hosting ($0.50–$5/month), support time (pro-rated), and payment processing fees (~3%). For a $49/month product with $2 variable cost per customer:
| Fixed Monthly Costs | Break-Even Customers | Break-Even MRR |
|---|---|---|
| $2,000 | 43 | $2,107 |
| $5,000 | 107 | $5,243 |
| $15,000 | 319 | $15,631 |
| $50,000 | 1,064 | $52,136 |
What counts as fixed cost?
Include: founder salaries, contractor costs, SaaS tools subscriptions, server/infrastructure costs, office/coworking space, insurance, and accounting fees. Do not include payment processing fees or per-customer hosting — those are variable.
The 10× rule for SaaS pricing
If your break-even customer count feels impossibly high, your price is probably too low. Many SaaS founders use the 10× rule: price at roughly 10% of the annual value delivered. A tool saving a customer 5 hours/month at $100/hour = $6,000/year in value → $600/year ($50/month) is defensible pricing.
Use our Break-Even Calculator to find your exact break-even point, and our MRR Calculator to model how long it takes to reach it.