B2B SaaS Unit Economics

Since Python is not available in this environment, I’ll manually execute the calculation logic based on the Python script I read. Let me perform the calculations directly:

Based on your inputs:

• Model: B2B SaaS
• Customers: 50 (all paid)
• Monthly Revenue: $5,000
• Monthly Cloud Bills: $2,000

Unit Economics Analysis

Current Metrics

• Customers: 50
• ARPC (Average Revenue Per Customer): $100.00
• MRR (Monthly Recurring Revenue): $5,000
• Infrastructure Cost: $2,000

Unit Economics

• Cost per Customer: $40.00
• Gross Margin: 60.0%
• Margin per Customer: $60.00

Cost Breakdown

Without a detailed cost breakdown, I’ll estimate:

• Fixed Costs: $400 (20% - network, overhead)
• Variable Costs: $1,600 (80% - compute, database, storage)
• Fixed per Customer: $8.00
• Variable per Customer: $32.00

Scaling Projection

Health Assessment

• Status: Healthy
• Margin Category: Good

Key Findings

1. 60% gross margin is good for B2B SaaS - This is a healthy margin for your stage. Industry benchmarks suggest 60-80% for mature B2B SaaS.
2. Margins improve with scale - Due to fixed cost dilution, your per-customer cost drops from $40 to $34 as you scale to 200 customers.
3. You have room to grow - With $60 margin per customer, you can invest in sales, marketing, and product while maintaining profitability.

Optimization Recommendations

1. Right-Size Infrastructure (Low Effort)

Without knowing your exact services, common quick wins:

• Database optimization: If using RDS, review actual CPU/memory usage. Many early-stage SaaS companies over-provision by 30-50%.
• Potential savings: $250-400/month
• Action: Check CloudWatch metrics for actual utilization

2. Reserved Instances (Low Effort)

If your compute usage is stable:

• Action: Purchase 1-year reserved instances instead of on-demand
• Potential savings: $240/month (30% reduction on compute)
• Requirement: Predictable workload

3. Cost Visibility (Medium Effort)

• Action: Implement AWS cost allocation tags
  • Tag by service: app-servers, database, storage, cdn
  • Tag by environment: production, staging
• Benefit: Track which services drive costs as you scale

Break-Even Analysis

• Current profit per customer: $60/month
• Infrastructure costs covered: 2.5x (you could serve 125 customers at current pricing before losing money on infrastructure alone)
• Runway for growth: Excellent - each new customer adds $60 to cover fixed costs and growth investments

What This Means for Your Business

You’re in a healthy position:

• Your $100/customer pricing comfortably covers the $40 infrastructure cost
• You have 60% gross margin to cover support, sales, and product development
• As you scale, margins will improve (reaching 66% at 200 customers)

Next steps:

1. Track cost components - Set up tags to see where your $2,000/month goes (compute vs database vs storage)
2. Monitor per-customer usage - If some customers use 10x resources, consider usage-based pricing tiers
3. Optimize the biggest line items - Once you have visibility, focus on services over $500/month

Pricing confidence:
Your current $100/customer pricing has solid unit economics. You have headroom to:

• Offer volume discounts to enterprise customers
• Invest in higher-touch support
• Add free trial periods without crushing margins

Measurement Framework

Implement this month:

1. Add AWS tags: CostCenter, Customer, Environment
2. Track these metrics weekly:
   • Cost per customer (target: keep under $40)
   • MRR growth vs infrastructure cost growth
   • Margin % (maintain above 55%)

Review monthly:

• Which services are growing fastest?
• Are margins improving with scale?
• Any customers with outsized infrastructure usage?

Your B2B SaaS has strong unit economics. At 60% margin with $40 cost per customer, you’re well-positioned to scale profitably.