Enter the total operational costs and the number of users into the calculator to determine the cost per user.

## Cost Per User Formula

The following equation is used to calculate the Cost Per User.

CPUS = OC / U
• Where CPUS is the cost per user ($/user) • OC are the total operational running costs($)
• U is the number of users on the platform

To calculate the cost per user, divide the running costs by the number of users.

## What is Cost Per User?

Definition:

Cost per user is a term most often used in technology and software sectors to describe the operation/running costs of one user on a platform such as a SAAS.

## How to Calculate Cost Per User?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per User.

First, determine the total running costs of the platform. In this example, the software takes a total of $50,000.00 to run on an annual basis. Next, determine the number of users using the software. This is found to be 2,500. Finally, calculate the cost per user using the formula above: CPUS = OC / #U CPUS =$50,000.00 / 2,500

CPUS = \$20 / user