How to calculate Subscription break-even
The Subscription break-even formula, with plain worked examples you can check yourself.
Subscription break-even = F ÷ (ARPU − V)
Worked examples
F = 4000 · ARPU = 50 · V = 10Subscription break-even = 100
F = 1200 · ARPU = 20 · V = 5Subscription break-even = 80
F = 900 · ARPU = 20 · V = 5Subscription break-even = 60
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Business Models.
Related terms
Practice Subscription break-even with real numbers
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