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Break-Even Calculator for SaaS

Find the point where revenue finally covers costs. Enter fixed costs, price and variable cost per unit to get your break-even in units and dollars, and how many units it takes to hit a profit target.

Your numbers

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Break-even units
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Break-even revenue
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Contribution / unit
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Contribution margin
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Units to $100K profit
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The break-even formula

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is your contribution margin, what each sale contributes toward fixed costs after the cost of delivering it. Once enough units each contribute their margin to cover total fixed costs, you break even; every unit after that is profit.

For SaaS, read it monthly: units are customers, price is your monthly ARPA, and variable cost is the cost to serve one customer (hosting, support, payment fees). The break-even point is how many customers cover your monthly fixed costs. If variable cost is at or above price, contribution margin is zero or negative and you never break even, fix pricing or cost to serve first.

Worked example: break-even for a $100 plan

A SaaS company spends $40,000 a month on fixed costs, charges $100 per customer per month and spends $20 a month to serve each customer.

Default inputs of the calculator above. Change any input to run your own numbers.
Fixed costs$40,000/mo
Price per unit (ARPA)$100
Variable cost per unit$20
Contribution per unit$100 − $20 = $80
Contribution margin$80 ÷ $100 = 80%
Break-even revenue500 × $100 = $50,000
Units to $100K profit($40,000 + $100,000) ÷ $80 = 1,750 units
Break-even units$40,000 ÷ $80 = 500 units

Break-even is a floor, not a goal. For the full picture, how growth, churn and burn move your path to profitability, see break-even analysis and model it in a full financial model.

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Frequently asked questions

What is the break-even formula?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). With $40,000 of fixed costs, a $100 price and a $20 variable cost, that is $40,000 ÷ $80 = 500 units.
How do you calculate the break-even point in revenue?
Multiply break-even units by price, or divide fixed costs by the contribution margin ratio: $40,000 ÷ 80% = $50,000 of revenue. Both give the same answer.
How do you calculate break-even for a SaaS company?
Use monthly figures: fixed costs per month, ARPA as the price and cost to serve one customer as the variable cost. The result is the number of paying customers that covers your monthly fixed costs. Break-even analysis covers how growth and churn move that point.
What is contribution margin in break-even analysis?
Price minus variable cost per unit: what each sale contributes toward fixed costs. As a ratio it is contribution ÷ price, so $80 on a $100 price is an 80% contribution margin.
How do I calculate break-even in Excel?
Put fixed costs in B1, price in B2 and variable cost in B3, then use =ROUNDUP(B1/(B2-B3),0) for break-even units and =B1/((B2-B3)/B2) for break-even revenue.
What if my price is below my variable cost?
Then contribution margin is zero or negative and you never break even, however many units you sell. Raise the price or lower the cost to serve before you add volume.
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Adlega. "Break-Even Calculator for SaaS: Formula and Example." Updated October 22, 2026. https://adlega.com/blog/tools/break-even/

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<a href="https://adlega.com/blog/tools/break-even/">Break-Even Calculator for SaaS: Formula and Example</a> (Adlega, updated October 22, 2026)

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