FINANCIAL MODEL

Model assumptions: Blended ARPU $57.50 · COGS/sub $33.13 launch, $31.00 at 200+ subs · Fixed costs $169/month base · Tiered ad spend $1,500→$6,000 · 10% monthly churn tapering to 7% by Year 2.

Year 1 — Monthly P&L

MonthSubscribersRevenueGross%Ad SpendFixed CostsEBITDACumulative
M1 — Jul 202627$1,56842.4%$1,500$169($1,004)($1,004)
M2 — Aug 202652$2,96442.4%$1,500$169($413)($1,417)
M3 — Sep 202688$5,03442.4%$2,000$169($36)($1,453)
M4 — Oct 2026133$7,62642.4%$2,500$169$563($890)
M5 — Nov 2026 ✅ BREAK-EVEN193$11,12342.4%$3,000$169$1,545$655
M6 — Dec 2026261$15,02546.1%$3,500$561$2,864$3,519
M7 — Jan 2027351$20,17646.1%$4,000$695$4,604$8,123
M8 — Feb 2027448$25,77546.1%$4,500$841$6,538$14,661
M9 — Mar 2027553$31,79446.1%$5,000$3,169$6,485$21,146
M10 — Apr 2027687$39,50646.1%$5,500$3,169$9,539$30,685
M11 — May 2027829$47,67746.1%$6,000$3,169$12,806$43,491
M12 — Jun 2027964$55,44146.1%$6,000$3,169$16,384$59,875

Ad Spend Ramp

6-MONTH DASHBOARD PERIOD — TOTAL $14,000
Jul — M1
$1,500
Aug — M2
$1,500
Sep — M3
$2,000
Oct — M4
$2,500
Nov — M5
$3,000
Dec/Jan — M6
$3,500
MONTHS 7–12 — TOTAL $45,000 YEAR 1
M7
$4,000
M8
$4,500
M9
$5,000
M10
$5,500
M11–12
$6,000

5-Year Summary

YearSubs EoYAnnual RevenueAd SpendEBITDAEBITDA %Valuation 4×Valuation 8×
Y1 FY2026-27964$264K$45K$60K22.7%$2.7M$5.3M
Y2 FY2027-283,817$1.72M$110K$770K44.7%$10.5M$21.1M
Y3 FY2028-298,164$4.22M$136K$2.24M53.1%$22.5M$45.1M
Y4 FY2029-3014,387$7.85M$165K$4.29M54.6%$39.7M$79.4M
Y5 FY2030-3120,844$12.36M$180K$6.86M55.5%$57.5M$115.1M

KPI Targets

Monthly Watch

KPITargetWarning
Churn RateBelow 10%Above 12%
CPABelow $50Above $75 → kill
LTV:CAC RatioAbove 3:1Below 2:1 = crisis
MRR GrowthMonth on month ↑Decline = investigate
Gross Margin42%+ launch, 46%+ at 200 subsBelow 38%

Viability Decision Points

End of Month 3 (Oct 2026): Early warning check. If subs below 40% of model AND no clear reason why, review strategy.

End of Month 6 (Jan 2027): First genuine viability checkpoint. Full Christmas data. LTV, churn, CAC all visible.

End of Month 12 (Jun 2027): Full year of trading. If below 300 subs, LTV:CAC below 2:1, churn above 12% — hard conversation required.

Pull the plug trigger: Below 300 subs at M12 + sustained LTV:CAC below 2:1 + churn above 12% despite adjustments.

Subscriber Tracker — Actual vs Model

Enter your actual subscriber count each Monday. The chart plots actual vs model so you can see at a glance whether you're ahead or behind plan.

Log Actual Numbers

Actual vs Model Chart

Model target
Actual