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Ramen Profitable

A term from Paul Graham for a startup earning just enough to cover the founders' basic living costs, ramen noodles being the cliche. Not real profitability, but enough to survive indefinitely.

Why it matters

Reaching ramen profitability removes the gun to your head: you no longer have to raise or die, so you can build on your own timeline and raise from strength. It is an underrated milestone for early founders.

For example

Two founders reach 3 lakh a month in revenue, just enough to cover their rent and food, so they can keep building indefinitely without raising.

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Related terms

Also in Starting Up

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

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