Free calculator for MSP owners
How many clients does an MSP need to break even?
An MSP's tools and technician time grow with clients, while leadership, office and insurance stay fixed. Break-even is the number of average clients that covers the fixed side.
Break-even point
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clients a month to cover every cost
Profit at today's level
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per month, before owner pay
Cushion above break-even
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how many you could lose and still cover costs
The starting numbers are an example for an MSP. Replace them with yours.
The worked example
Each client brings in $3,500 a month and costs $1,400 to serve. That leaves $2,100 toward fixed costs of $35,000 a month. Divide one by the other and you need 17 clients to break even. Every client past that adds $2,100 to profit.
Ways to lower break-even in an MSP
- Raise per-seat prices when tool costs rise, and say so in the contract.
- Standardize the tool stack so each client costs less to support.
- Move project-heavy clients onto managed contracts.
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