Created by Robbert van Geldrop
Subscription businesses can be hard to calculate or forecast accurately as they have many moving parts.
This calculator helps you work through the details quickly and produces a cost benefit analysis which contains key metrics and financial projections within minutes. This helps you compose a solid business case.
I designed this calculator to make a ROI calculation for justifying investment decisions in marketing, product development and financing of products, content or licenses.
You can download the spreadsheet which you can use as a template for these calculations as well once you've filled in the calculator.
Subscription businesses come in many forms such as subscription boxes, Software-as-a-Service (SaaS) and Product-as-a-Service (PaaS). Also many content companies such as Netflix and Spotify offer subscriptions to access music, movies or newspapers.
Subscription businesses happen to be the most profitable sort of businesses in the long run. They create a steady stream of revenue and profit. At the same time they are often very capital-intense and require to calculate investment decisions.
Subscription business models have many moving parts. It makes it a bit challenging to produce a solid cost benefit analysis to determine if a business case will be profitable or not.