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SaaS Profitability Calculator

Analyze profitability and path to breakeven

Revenue

Your recurring revenue

For breakeven projection

Annual Recurring Revenue (ARR)

$1,200,000

Operating Costs

Monthly expenses

Hosting, support, direct costs

Profitability Metrics

Your financial health

Net Profit/Loss (Monthly)

$10,000

✓ Profitable

Net Profit Margin

10.0%

✓ Profitable

Months to Breakeven

0

Already profitable!

Profit & Loss Statement

Monthly financial breakdown

Revenue (MRR) $100,000
Less: Cost of Goods Sold ($20,000)
Gross Profit

$80,000

80.0% margin

Operating Expenses:

Sales & Marketing ($30,000)
Research & Development ($25,000)
General & Administrative ($15,000)
Operating Profit

$10,000

10.0% margin

Net Profit

$10,000

10.0% margin

Profitability Projection

Next 12 months at 5% growth

MonthRevenueCostsProfitCumulative
0$100,000$90,000$10,000$10,000
1$105,000$91,000$14,000$24,000
2$110,250$92,050$18,200$42,200
3$115,763$93,153$22,610$64,810
4$121,551$94,310$27,241$92,051
5$127,628$95,526$32,103$124,153
6$134,010$96,802$37,208$161,361
7$140,710$98,142$42,568$203,929
8$147,746$99,549$48,196$252,125
9$155,133$101,027$54,106$306,231
10$162,889$102,578$60,312$366,543
11$171,034$104,207$66,827$433,370
12$179,586$105,917$73,669$507,039

About SaaS Profitability

Gross Margin shows profit after direct costs (COGS). SaaS companies typically target 70-80%+ gross margins.

Operating Margin includes all operating expenses. Many SaaS companies sacrifice short-term profitability for growth.

Path to Profitability: Understanding when you'll break even helps with fundraising, runway planning, and strategic decisions.