Cost Per User Calculator

Formula

The formula to calculate the Cost Per User (CPUS) is:

\[ CPUS = \frac{OC}{U} \]

Where:

$ CPUS $ is the Cost Per User ($/user)
$ OC $ are the Total Operational Costs ($)
$ U $ is the Number of Users on the Platform

What is Cost Per User?

Cost Per User (CPUS) is a metric often used in the technology and software sectors, especially in Software as a Service (SaaS) platforms, to determine the operational or running costs associated with servicing a single user on the platform. This metric is crucial for understanding the cost structure of a business and can inform pricing strategies and financial planning.

Example Calculation

Let's consider an example:

Total Operational Costs (OC): $500,000
Number of Users (U): 10,000

Using the formula to calculate the Cost Per User (CPUS):

\[ CPUS = \frac{500000}{10000} = 50 \, \text{\$/user} \]

This means that the cost to serve each user on the platform is $50.