BizJourney
Home › Formulas › Subscription break-even

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

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. 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

FranchiseCompetitive moatCash cowFreemiumProduct-market fitSubscription model

Practice Subscription break-even with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →