# How Many Monthly Recurring Customers Do You Need for a 0.5 Million Investment?

## Steps

2. Estimate the investor’s equity stake
3. Calculate your valuation. Valuation = investment / equity stake
4. Estimate the investor’s required money multiple
5. Calculate your exit value. Exit value = valuation * money multiple
6. Estimate the buyer’s revenue multiple at exit
7. Calculate your annual revenue at exit. Annual revenue at exit = exit value / revenue multiple at exit
8. Calculate your monthly revenue at exit. Monthly revenue at exit = annual revenue at exit / 12
9. Estimate your price per product at exit
10. Calculate your monthly number of products at exit. Monthly products at exit = monthly revenue at exit / price per product at exit
11. Estimate the number of products per invoice at exit
12. Calculate your monthly number of invoices at exit. Monthly invoices at exit = monthly products at exit / products per invoice at exit
13. Calculate the monthly total number of customers at exit. Monthly total customers at exit= monthly invoices at exit * invoice interval
14. Estimate the life of a customer at exit
15. Calculate your monthly number of new customers at exit. Monthly new customers at exit = monthly total customers at exit / life customer