Tools

Subscription break-even calculator

Calculate how many paid subscriptions cover assumed fixed costs using explicit fee and variable-cost inputs.

Updated · Checked

Calculate your scenario

All amounts use the same currency and period. Values are illustrative inputs, not earnings claims. Enter actual costs; zero extra costs do not prove none apply.

Enter assumptions to calculate.

Formula and assumptions

Gross receipts = subscribers × price. Net receipts = gross less refunds, platform commission on retained receipts, processing on gross plus per-transaction costs, payout costs and other costs. Required subscribers = round up ((payout costs + other costs + target net) ÷ per-subscriber margin). A zero or negative margin cannot reach a positive target with fixed costs. When the fixed costs and target are zero, zero subscribers suffice.

On this page

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

Set up a consistent scenario
InputHow to choose it
Subscription priceThe price of one subscription for the chosen period.
Refund assumptionThe share of gross sales you expect to reverse.
Platform and processing ratesSeparate the platform deduction from payment processing.
Fixed processing chargeThe charge per subscription payment, if applicable.
Payout and other costsFixed costs for that same period.
Take-home targetThe 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