How is gross margin calculated?

Gross margin = (MRR - variable costs) / MRR × 100%. Variable costs include per-user costs for both free and paid users. Fixed costs like infrastructure and team salaries are excluded from gross margin.

What's a good paid conversion rate?

For freemium SaaS, 2-5% is typical. Developer tools and B2B products often see 5-10%. Consumer apps tend to be lower at 1-3%.

How is gross margin calculated?

Gross margin = (MRR - variable costs) / MRR × 100%. Variable costs include per-user costs for both free and paid users. Fixed costs like infrastructure and team salaries are excluded from gross margin.

What's a good paid conversion rate?

For freemium SaaS, 2-5% is typical. Developer tools and B2B products often see 5-10%. Consumer apps tend to be lower at 1-3%.

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SaaS Profit Calculator

Input your SaaS metrics — MAU, paid rate, subscription price, and costs — to calculate monthly profit and unit economics.

100% FreeNo Signup RequiredRuns in Your Browser

Revenue

Monthly Active Users (MAU)5,000

Paid Conversion Rate5%

Subscription Price$29

Costs

Cost per Free User / mo$0.1

Cost per Paid User / mo$2

Fixed Monthly Cost (infra, team, etc.)$500

MRR

$7,250

ARR

$87,000

Monthly Profit

$5,775

Gross Margin

86.6%

Revenue vs Cost

Revenue (MRR)$7,250

Total Cost$1,475

Unit Economics

Paying users250

Free users4,750

Revenue per user (ARPU)$1.45

Cost per user$0.3

LTV (12-mo avg)$348

Free user cost$475

Paid user cost$500

Fixed cost$500

Break-even MAU399

Profitable

$5,775/mo profit at 86.6% gross margin

About SaaS Profit Calculator

Input your SaaS metrics — monthly active users, paid conversion rate, subscription price, and per-user costs — to calculate MRR, ARR, gross margin, monthly profit, ARPU, LTV, and break-even point. A practical tool for indie hackers and SaaS founders.

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