This Revenue and Cost Forecasts Software Development document shows the three-year financial forecast for the ProjectAdm SaaS platform — projecting subscription revenue, operational costs, and net profit from March 2026 (launch) through February 2029. Eduardo Montes and Henry Douglas used this Excel model to support the Business Case, the Funding Strategy, and the M5 milestone review that confirmed the project's commercial viability before the organizational investment was closed.

What Are Revenue and Cost Forecasts?

Revenue and Cost Forecasts are a PMBOK 8 output in the Measurement Performance Domain that project the financial performance of the product or service resulting from the project over a defined period. They extend beyond the project budget (which covers development costs) to model the ongoing operational revenue and expenses of the delivered product. For SaaS projects, revenue forecasts are built from customer acquisition models (new customers per month, churn rate, average revenue per user), while cost forecasts cover ongoing infrastructure, support, and development costs. These forecasts are essential inputs to the Business Case NPV calculation and post-launch financial governance.

What This Revenue and Cost Forecasts Software Development Includes

The ProjectAdm Revenue and Cost Forecasts workbook contains a full 36-month financial model:

• Revenue Model Assumptions — Launch: March 2026; Freemium conversion rate: 8% of signups to paid within 90 days; Monthly churn: 3% (conservative); Pricing tiers: Free ($0), Starter ($19/mo), Professional ($49/mo), Enterprise ($149/mo); Distribution: 55% Starter, 35% Professional, 10% Enterprise (based on beta user survey); Customer acquisition cost: $45/customer (SEO-led, organic)
• Year 1 Revenue Forecast (Mar 2026 – Feb 2027) — New customers: 15/month average; Month 3 target: 50 paying customers; End of Year 1: 150 paying customers; ARR: $88,200; Monthly Recurring Revenue (MRR) at year-end: $7,350; Average Revenue Per User (ARPU): $49/month blended
• Year 2 Revenue Forecast (Mar 2027 – Feb 2028) — New customers: 40/month average (SEO flywheel + affiliate program); End of Year 2: 500 paying customers; ARR: $294,000; MRR at year-end: $24,500; ARPU: $49/month (mix shift toward Professional and Enterprise tiers)
• Year 3 Revenue Forecast (Mar 2028 – Feb 2029) — New customers: 80/month; End of Year 3: 1,200 paying customers; ARR: $705,600; MRR at year-end: $58,800; Enterprise tier growth: 15% of customers (up from 10% in Year 1)
• Operational Cost Forecasts — Year 1: AWS infrastructure $33,600/yr; support team (part-time, Marcus Webb + Bruno Silva): $40,000; content/marketing (SEO, Eduardo Montes 20% time): $12,600; OpenAI API: $9,600; payment processing fees (2.9%+$0.30): ~$2,600; Total opex Year 1: $98,400; Net Year 1: $88,200 – $98,400 = -$10,200 (near-breakeven)
• NPV and Payback Analysis — Total development investment: $242,500; Cumulative net cash flow by year: Year 1: -$252,700; Year 2: +$52,800 cumulative; Year 3: +$371,200 cumulative; NPV (10% discount rate, 5 years): $412,000; Payback period: 3.2 years (Month 38 from project approval); IRR: 28.4%
• Sensitivity Analysis — If churn = 5%: Year 3 ARR drops to $560,000 (NPV still positive at $298,000); If new customers = 60/mo Year 3: ARR $528,000 (NPV $264,000); Break-even sensitivity: project still NPV-positive under all scenarios where monthly churn <7%

How Eduardo Montes Used This Revenue and Cost Forecasts Software Development

Eduardo Montes updated the Revenue and Cost Forecasts Software Development model at M3 and M5 with revised assumptions based on beta user data. The M3 update (July 2025) revised the Enterprise tier penetration upward from 8% to 10% based on beta feedback about SSO and white-label demand — increasing the Year 3 NPV by $48,000. This updated model was presented at the M5 closure review and used by Henry Douglas to make the case for hiring a dedicated customer success manager in Q4 2026.

How to Use This Revenue and Cost Forecasts Software Development Document

When building your own Revenue and Cost Forecasts Software Development model, build the sensitivity analysis before the base case — understanding the break-even conditions (churn <7%, customers >40/month Year 2) tells you which assumptions most need validation during the project. The ProjectAdm model's sensitivity analysis made the post-launch marketing investment in SEO and the affiliate program a financially justified priority, not just a nice-to-have.

Download the Template and Deepen Your Knowledge

Ready to create your own revenue and cost forecasts? Download the blank Revenue and Cost Forecasts Template (PMBOK 8).

• Download the Revenue and Cost Forecasts Template — PMBOK 8 (blank, ready to use)
• Read the full guide: Revenue and Cost Forecasts in PMBOK 8

Want to go deeper? The PMBOK Guide 8th Edition is the definitive reference for modern project management. Get your copy and use it alongside these examples to build a solid, practical understanding of every performance domain.

Format: Microsoft Excel (.xlsx) | Project: Software Development (SaaS Platform) | PMBOK Edition: 8th (2025) | Domain: Measurement