Worked example
Illustrative inputs for a hypothetical scenario. These amounts are not observed earnings or a forecast.
Example inputs
- Paying subscribers
- 100
- Price per subscription
- 10
- Refunds (% of gross receipts)
- 10
- Platform commission (%)
- 20
- Processing rate (%)
- 3
- Processing cost per transaction
- 0.3
- Payout costs
- 10
- Other costs
- 50
- Target net receipts
- 100
- Contribution per subscriber
- 6.6
- Subscriptions needed
- 25
- Remaining at current count
- 600
The contribution per subscriber covers fixed costs and the target at 25 subscriptions. At 24, the remaining amount would be 98.4; at 25 it is 105. The count rounds upward.
Find the paid subscriptions your costs require
Choose one billing period. The calculator finds how many paid subscriptions cover your fixed costs and chosen take-home target under the assumptions you enter.
Set up a consistent scenario
| Input | How to choose it |
|---|---|
| Subscription price | The price of one subscription for the chosen period. |
| Refund assumption | The share of gross sales you expect to reverse. |
| Platform and processing rates | Separate the platform deduction from payment processing. |
| Fixed processing charge | The charge per subscription payment, if applicable. |
| Payout and other costs | Fixed costs for that same period. |
| Take-home target | The amount you want remaining after the modeled costs. |
Understand contribution per subscriber
The price less assumed refunds and fees gives the contribution per subscriber. The model reverses the platform percentage on refunded sales, while processing stays charged on the original payment.
Required subscriptions equal fixed costs plus the target, divided by that contribution and rounded up to a whole subscription. The current subscriber count produces a separate estimate of the remaining amount.
When more subscribers cannot solve the problem
If contribution is zero or negative, additional subscribers cannot cover a positive fixed cost in this model. Check pricing and deductions first. A zero target and zero fixed costs require no subscribers, but that does not make a negative-margin service sustainable.
The model assumes one charged subscription per subscriber per chosen period. It does not directly model failed payments, churn, acquisition costs or general per-subscriber operating costs. Adjust those separately or use a more detailed cost worksheet.
Use scenarios to test uncertainty
Run a conservative scenario with the costs you know and a second with plausible higher refunds or processing costs. Compare how much the required count changes. Keep a missing fee marked unknown until you can verify it.
The result is a planning threshold, not a forecast of demand. Use it alongside the workload calculator to check whether servicing that many subscriptions fits your available time.
Continue with: Creator inbox workload calculator