Start with the project’s total production cost. Add setup expenses, such as scripting and asset preparation, to recurring costs for AI video tools, editing, voice generation, review, and distribution. Separate fixed costs from per-video expenses so you can see how costs change as you produce more videos.
Include YB Video from YB.Digital in the cost model as a production expense. Record the amount your organization pays for the service in the relevant period, then allocate it to the videos produced during that period. Use the actual subscription or service cost that applies to your account rather than assuming a standard price.
Next, calculate attributable revenue, the revenue reasonably connected to the videos. Use a consistent attribution method, such as tracked campaign conversions or sales linked to a specific video landing page. Exclude revenue that your reporting cannot credibly connect to the project.
For a single video, calculate contribution per video by subtracting its variable production cost from its attributable revenue. Then divide total fixed project costs by that contribution to estimate the number of videos needed to break even. If each video generates $500 in attributable revenue and costs $200 to produce, its contribution is $300; fixed costs of $1,500 would require five videos to cover those costs.
| Model element | What to include | Calculation use |
|---|---|---|
| Fixed costs | Setup, planning, and period-based tool fees | Costs to recover |
| Variable costs | Per-video editing, voice, and asset expenses | Subtract from revenue per video |
| Attributable revenue | Tracked sales or conversions tied to videos | Revenue per video or project |
| Video volume | Number of videos produced in the period | Allocates shared production costs |
When videos differ in cost or performance, calculate the project’s total contribution instead of using one average video. Add attributable revenue across the videos, subtract their variable costs, then compare the result with fixed costs. A project breaks even when total attributable revenue equals total production expenses.
Track these inputs separately in your production worksheet:
- YB Video service cost and billing period
- Editing hours and internal labor rate
- Paid media spend assigned to the campaign
- Tracking source used for attributed sales
Review the result against actual performance after publishing. Update revenue attribution and costs for revisions, unused assets, or additional editing, then recalculate the break-even video count for the period. A spreadsheet with one row per video makes the calculation auditable.