Fixed Costs

Costs that stay roughly the same regardless of how much you sell, like rent, salaries, and software subscriptions. You pay them whether you have one customer or a thousand.

Why it matters

Fixed costs set your baseline burn and your break-even point. Keeping them lean early gives a startup more runway and more room to experiment before the model is proven.

For example

Rent, salaries, and software subscriptions of 25 lakh a month are fixed costs the startup pays whether it has ten customers or ten thousand.

Worth your time

Related terms

Go deeper

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

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