SaaS Break-even MRR Calculator
Minimum MRR needed to cover all SaaS expenses.
For a SaaS business, break-even MRR is the revenue needed to cover all operating expenses (salaries, tools, hosting, etc.). If monthly burn is $10k, you need $10k MRR to break even at the cash level. This calculator helps you set a target for when your SaaS becomes self-sustaining.
Inputs
Results
Break-even MRR: $18,750
Break-even ARR: $225,000
Insights
Formula
Break-even MRR = Expenses / (Gross margin %) (Gross margin % of revenue goes to cover expenses)
Input Definitions
What does each input mean?
- Monthly expenses
- Total monthly burn—salaries, software, hosting, marketing, and all operating costs. The MRR needed to cover this.
- Gross margin %
- Percentage of revenue that is gross profit. SaaS often 70–90%. Higher margin means less MRR needed to break even.
Related Calculators
The MRR Number Where Your SaaS Business Stops Losing Money
Every SaaS business has a fixed monthly cost base — engineering, infrastructure, customer success, administration — and a break-even MRR where revenue covers it. Until you cross that threshold, every new customer is reducing your loss rather than generating profit. This calculator helps you find that number and understand how far you are from it.
Use it when you’re planning for profitability milestones in a fundraising context, when you want to understand how close you are to default alive, or when you’re evaluating whether to run lean and reach break-even versus raising more capital. Break-even MRR is one of the most useful targets you can set — it’s binary (above or below), easy to track, and directly connected to survival.