Free tool

SaaS Pricing Calculator

Design a 3-tier pricing model, set take rates, and project MRR and ARR in 60 seconds. Built on value-based pricing best practices for B2B SaaS.

Tier prices

Three-tier B2B SaaS pricing is the proven default. Set monthly list prices.

$

Individuals or small teams

$

Your majority revenue tier

$

Anchors value (or quote-based)

Tier mix (% of customers)

Business share = 100% minus the other two. Most healthy SaaS sees 25 / 60 / 15.

%
%
15%

Auto-calculated

Growth assumptions

Net new paid signups across all tiers

%

3-5% is typical SMB SaaS

%

75-85% typical for SaaS

%

What % of buyers pay annually

%

Discount given for annual prepay

Blended ARPU
$106/mo
List ARPU $112 - annual discount applied
Steady-state customers
1,000
Where new signups = churned
Customer LTV
$2,113
At 80% gross margin
Tier-spread check
Business / Growth = 3.0x
Your business tier anchors value at a sensible multiple of growth.
Healthy Tier Spread

Year 1 projection

Simple model: net new customers per month minus churn, no expansion revenue.

Month 12 MRR
$40,916
Month 12 ARR (annualized)
$490,989
MonthActive customersMRRARR run-rate
278$8,283$99,392
4151$15,916$190,992
6217$22,951$275,410
8279$29,434$353,210
10335$35,409$424,910
12387$40,916$490,989

Steady-state economics

Steady-state MRR$105,646
Steady-state ARR$1,267,755
Gross profit at steady state$1,014,204
Average customer lifetime25 months

Pricing benchmarks

Healthy tier mix25 / 60 / 15
Growth-to-Business price ratio2x to 5x
Annual discount range10% to 20%
Annual plan adoption25% to 50%
Net revenue retention target110%+

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Frequently asked questions

How do I price a new SaaS product?+

Start by defining the value metric (the unit your customer pays for as they get more value: seats, projects, API calls, GB stored). Then size three tiers around the most common usage patterns, and price each tier so the middle tier captures roughly 60 to 70 percent of buyers. Finally, validate with willingness-to-pay interviews: ask 20 target users what they would expect to pay, and look for the band where most answers cluster.

What is the difference between cost-plus, competitor-based, and value-based SaaS pricing?+

Cost-plus pricing adds a fixed margin on top of your unit cost. It is the easiest to compute but rarely the most profitable, because it ignores what the customer actually values. Competitor-based pricing anchors to what similar tools charge. It is fast to set but caps your upside and assumes the market is correctly priced. Value-based pricing starts from the customer outcome (revenue gained, hours saved, risk avoided) and captures a fraction of that value as price. It is the hardest to research but produces the highest ARPU and best margins for differentiated SaaS.

How many pricing tiers should a SaaS product have?+

Three is the proven sweet spot for most B2B SaaS: a Starter tier for individuals or small teams, a Growth tier that captures the majority of revenue, and a Business or Enterprise tier with custom pricing for large accounts. Two tiers leaves money on the table from large customers. Four or more creates choice paralysis and slows down the buying decision. Use add-ons rather than extra tiers for power features.

What is a value metric and why does it matter?+

A value metric is the unit a customer pays more for as they get more value from your product. Examples: seats for collaboration tools, contacts for email marketing, API calls for developer tools, GB for storage. A good value metric grows with the customer (so revenue expands without re-selling), is simple to count and forecast, and aligns price with perceived value. SaaS companies with strong value metrics typically see 110 to 130 percent net revenue retention.

How do I project MRR and ARR from my pricing?+

Multiply your expected paying customers per month by the blended ARPU (average revenue per user). Blended ARPU is the weighted average of all tier prices, weighted by the share of customers in each tier. ARR is MRR times 12. For projections, also model expansion revenue (existing customers moving up tiers or adding seats) and churn. A typical SaaS expands MRR by 10 to 30 percent annually from existing customers while losing 10 to 20 percent to churn.

Should I publish enterprise pricing on my website?+

No, in almost every case. Hiding enterprise pricing behind a contact form gives you room to price each deal based on the prospect's budget, organization size, and use case, and it qualifies leads who can support a sales conversation. Publishing your top tier price also caps every enterprise deal at that number. The exception is product-led companies that explicitly want to remove sales friction at every tier.

How often should I re-evaluate my SaaS pricing?+

Light review every quarter (look at win rates, downgrade reasons, and feature usage). A full pricing audit every 12 to 18 months. Raise prices on new customers first to limit churn risk, and grandfather existing customers for at least 6 months. Most SaaS companies underprice for the first 2 years of life and could safely raise prices 20 to 40 percent without affecting conversion.