SaaS pricing tier calculator

What it does

This SaaS pricing calculator shows what a set of plans would earn each month. Enter your plans, whether each is charged per account or per seat, the monthly list price, the average seats on per-seat plans, and the share of customers you expect on each. Add the share of customers on annual billing and the discount they get. The page returns monthly recurring revenue (MRR), the annual run rate (ARR), average revenue per account, each plan's share of revenue, total seats sold and the monthly cost of the annual discount. It runs in your browser.

How to use it

1. Pick a currency and enter the number of paying customers, today or at a target date.
2. Enter the share on annual billing and the annual discount.
3. Set up each plan: name, per account or per seat, list price, average seats and the share of customers.
4. Make sure the customer shares add to 100%. If they do not, the page scales them and says so.
5. Change one price or share at a time and copy the summary when you have a version worth discussing.

How to read the result

The example has 200 customers across three plans. Starter is 19 a month per account and takes 55% of customers, so 110 accounts. Team is 12 per seat with 6 seats on average, or 72 per account, for 70 accounts. Business is 25 per seat with 15 seats, or 375 per account, for 20 accounts. At list price that is 2,090 + 5,040 + 7,500 = 14,630 a month.

Thirty per cent of customers pay annually at 15% off, which lowers revenue by 0.30 × 0.15 = 4.5%. MRR is 14,630 × 0.955 = about 13,972, ARR is about 167,660, and revenue per account is about 69.86. The discount costs about 658 a month.

The useful finding is the split. Business has 10% of customers but brings in about 51% of MRR, while Starter has over half the customers and about 14% of revenue. Raising the Starter price from 19 to 24 adds about 525 a month. Raising the Team seat price from 12 to 14 adds about 802, because it multiplies across 420 seats.

The formulas:

• Revenue per account = price × seats (seats is 1 on per-account plans)
• Plan MRR = customers × share of customers × revenue per account × (1 − annual share × discount)
• ARR = MRR × 12, and revenue per account = MRR ÷ customers

This is a model, not a forecast. Customers choose plans based on what each tier includes, so a price change can also change the mix. Check the long-term value of a customer at your new prices with the LTV calculator, and payment fees with the Stripe fee calculator.

Billing, seat management and plan limits all need building into the product. Our web app development service covers subscription billing in SaaS products.