Method and assumptions
Contribution is price less customer-level variable cost. Fixed costs such as payroll and core software are covered only after contribution accumulates.
Break-even customers = fixed costs ÷ contribution per customer.
Worked scenario
Enter monthly fixed cost, price and variable delivery cost for one package. Calculate the customer count needed to cover the fixed base, then run a case with expected discounts and a case with higher support cost. Compare the result with sales capacity and churn replacement requirements.
How to interpret the result
Break-even customer count assumes the entered contribution per account remains stable as the business grows. In reality, sales capacity, infrastructure tiers and support staffing create steps. Use the number as a planning threshold, then place hiring and infrastructure step costs on the growth path.
Input reference
- Currency
- Example default: USD
- Monthly price per customer
- Example default: 99
- Variable cost per customer
- Example default: 12
- Monthly fixed costs
- Example default: 45000
- Target monthly profit
- Example default: 25000
Common mistakes
- Using list price instead of realized net price.
- Ignoring the customers needed to replace churn.
- Assuming fixed cost stays flat through every scale step.
Before using the result
- Use realized contribution after discounts and delivery cost.
- Add churn replacement to the acquisition plan.
- Map major hiring and infrastructure thresholds.
Questions to check before deciding
Does this include churn?
No. Use expected active customers for a period, then model churn separately.
What counts as fixed cost?
Include costs that remain broadly stable across the expected customer range.
Independent planning calculator. Not financial, tax, legal or investment advice.