Break-Even Point
A simple, yet effective API that can be used to generate detailed break-even analysis tailored to your business model. Whether you are pricing freelance projects, offering digital content online or managing a subscription based service.
The solution builds on the existing API, and adds a set of challenges (hands-on excercises) for each business model. Try to complete them all! Each challenge expects a POST request with a specific JSON body. The request then returns whether you passed or failed the challenge.
Meant to run locally using our portable HTTP server.
Freelancer
The following challenges are centered around the freelancer endpoint, providing you with a better understanding of how pricing, costs and labor affect your business goals
POST /challenge/freelancer-1
Challenge 1: Break even in 5 projects
Goal: Choose a projectRate and fixedCosts so you can break even within 5 projects or fewer.
{
"fixedCosts": 1000,
"projectRate": 150
}
Digital Creator
These challenges are centered on you being a digital content creator, helping you understand how pricing, platform fees and visitor conversion rate relate to your ability to generate profit.
POST /challenge/digital-creator-1
Challenge 1: Break even in with a 1% conversion rate
Goal: Set your productPrice and fixedCosts, so that you can break even with a 1% conversion rate and less than 5000 visitors.
{
"fixedCosts": 1000,
"productPrice": 25,
"platformFeePercent": 10
}
POST /challenge/digital-creator-3
Challenge 3: Keep platform fees below 200€ at break-even.
Goal: Adjust your productPrice, fixedCosts, and platformFeePercent, so that the total platform fees paid by the time you break even are under 200€.
{
"fixedCosts": 900,
"productPrice": 30,
"platformFeePercent": 15
}
POST /challenge/saas-2
Challenge 2: Earn 5000€ profit while maintaining less than 500 users
Goal: Reach at least 5000€ in profit with less than 500 users. Hint: Keep your churn under control.
{
"fixedCosts": 1000,
"pricePerUser": 50,
"variableCostPerUser": 10,
"churnRate": 5
}
Download the whole code, or just a distribution bundled with esbuild and get going
You can also download the API along with the HTTP server to run the API. Just extract the .zip, import the deps and run the backend_server.exe.
POST /challenge/freelancer-2
Challenge 2: Earn over 1000€ in profit under 50 hours
Goal: Reach at least 1000€ profit (on top of covering your costs) while working less than 50 hours in total.
{
"fixedCosts": 1000,
"projectRate": 150,
"profitGoal": 1000,
"laborHoursPerProject": 5
}
POST /challenge/freelancer-3
Challenge 3: Keep your hourly rate below 30€
Goal: Choose your fixedCosts, profitGoal, laborHoursPerProject so that your effective hourly rate stays below 30€.
{
"fixedCosts": 600,
"profitGoal": 900,
"laborHoursPerProject": 50
}
POST /challenge/digital-creator-2
Challenge 2: Earn 1000€ profit with less than 10 000 visitors
Goal: Reach at least 1000€ in profit while staying under 10 000 total visitors, based on your conversionRate, productPrice and platformFeePercent.
{
"fixedCosts": 800,
"productPrice": 40,
"platformFeePercent": 30,
"conversionRate": 2.5
}
SaaS
The next three challenges are centered around the economics of running a Software as a Service (SaaS) business. They will help you understand how user pricing, churn rate or customer lifetime values (CLTV) impact your abilities to achieve profit.
POST /challenge/saas-1
Challenge 1: Break even with less than 200 users
Goal: Set your fixedCosts, pricePerUser, and variableCostPerUser to break even with less than 200 users.
{
"fixedCosts": 1500,
"pricePerUser": 50,
"variableCostPerUser": 10,
"churnRate": 5
}
POST /challenge/saas-3
Challenge 3: Achieve a customer lifetime value (CLTV) above 100€ per user.
Goal: Adjust your pricePerUser, variableCostPerUser, and churnRate to achieve CLTV greater than 100€.
{
"pricePerUser": 50,
"variableCostPerUser": 10,
"churnRate": 5
}