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