Micro-SaaS

In one self-selected scoutr analysis of 8,817 indie startups, 54% had $0 in monthly revenue, 12.1% were above $1,000 and 3.1% above $10,000.

Selling costs 2.9% + 30¢ per domestic card payment on Stripe, or 5% + 50¢ per transaction on Paddle, whose pricing includes tax compliance.

Micro-SaaS suits people who can already build and run software and can go without income for an unknown stretch.

How the money works

Customers pay you a subscription or a one-time price that you set. A payment processor moves the money, and a merchant of record also becomes the legal seller. Stripe's pricing page lists Managed Payments, its merchant-of-record option, at 3.5% per transaction on top of Payments fees, including sales tax compliance and remittance. Paddle and Lemon Squeezy say they collect and remit sales tax and VAT themselves. The platform table below lists each fee.

What micro-SaaS founders actually earn

The one sample-based revenue source is scoutr's analysis, which covers founders who connected a payment account.

Revenue in these figures is before fees, hosting and tax. No published source gives a typical time to first revenue. The BLS Occupational Outlook Handbook doesn't measure founder income.

Where the hours go

The calculator models only the platform fee. Customer support, bug fixes and hosting upkeep are unpaid hours that continue whether or not revenue arrives.

What it costs to start

Hosting is a monthly cost that runs whether or not anyone pays. The Apple and Chrome fees apply only if you distribute through those stores.

Where to collect payment

These platforms handle checkout and payouts for software.

Freemius sells SaaS, downloadable software and Chrome extensions.

Sales tax, business setup and income tax in the U.S.

States differ on whether software subscriptions are taxable. In a 2020 advisory opinion, the New York tax department treated a hosted software service as prewritten software subject to sales tax. Check your own state's tax agency.

Once you cross a state's economic nexus threshold you may need to collect tax there. Stripe says most states use $100,000 in sales or 200 transactions in 12 months, with Texas and California at $500,000. A merchant of record takes this on, though Lemon Squeezy notes you may still owe income tax on payouts.

The SBA says a sole proprietorship exists automatically, with unlimited personal liability, and an LLC limits liability. Local zoning and trade-name rules can apply even to home-based businesses.

Income from the product is self-employment income. The IRS applies self-employment tax from $400 in net earnings, and the self-employed tax center covers Schedule C.

Risks and red flags

• Account holds. Stripe's services agreement lets it suspend access immediately over fraud or risk concerns, close an account at any time, and hold a reserve. Its payout help page says a reserve can cause partial payouts.
• Chargebacks. On Stripe, a dispute debits the disputed amount plus a fee.
• Missed sales tax. Stripe says tax you should have collected comes out of your pocket, with interest and penalties it says average 30%.
• API dependency. OpenAI's services agreement lets it limit or suspend API access, which matters if your product runs on it.
• Income claims. Stripe's restricted list includes pyramid schemes and get-rich-quick schemes.

Who micro-SaaS fits, and who should skip it

Fits you if:

• You can already build and host software, so your main cost is time rather than a development bill.
• You can cover hosting and payment costs out of pocket while revenue is zero.
• You are comfortable owning sales tax and business setup, or paying a merchant of record to take over the tax work.

Skip it if:

• You need income soon. Paid website and app user testing pays per test without a product to build.
• You don't write code. Rating AI responses pays per task with no startup risk.
• You want the simplest start. Paid online surveys need no experience.

How to start

1. Price hosting on Render or Fly.io so you know your monthly floor before launch.
2. Choose a payment route: Stripe Payments, or a merchant of record such as Paddle, Lemon Squeezy or Freemius.
3. If you pick Paddle, follow its go-live checklist. It requires terms, privacy and refund pages and a reviewed domain before checkout works.
4. Look up your state's treatment of SaaS on its tax agency's website and note the nexus threshold for states where customers live.
5. Decide between sole proprietorship and LLC using the SBA's licensing guide, and check your city's rules for home-based businesses.
6. Keep records of income and expenses for Schedule C and check the IRS estimated tax rules, which apply when you expect to owe $1,000 or more.