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Community Manager at ST
Posted last year
How much would you charge for your SaaS if you just wanted to break even?
Originally posted by Peter Eastvold on Facebook
I think break even for a SaaS cannot be well defined as it's a progressive
development. It could be easy if any SaaS with fully completed and no more
enhanment is needed. In such case we can define the price based on Break Even.
But I am pricing my SaaS based on at what time the company should be a million
dollar company. It's not possible with just one version of SaaS. So we have
planned to add more modules one by one and the price will be increased stage by
What is your timeframe to break even? How many customers do you have? What are
your costs? And how fast are you growing? It is hard to answer without this
information at a minimum.
Several years ago a created an excel file to calculate that. It includes a rough
estimate of initial development costs and then shows the how the revenue
accumulates over time.
Here's the link