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Pricing Model

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Revenue Analysis

Monthly Recurring Revenue
$0
Annual Recurring Revenue
$0
Customer LTV
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Avg Customer Lifetime (mo)
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Annual Discount
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Gross Margin
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Projected MRR in 12 Months$0

*Disclaimer: Estimates only. This tool is for informational purposes and does not constitute professional financial or tax advice. Consult a qualified CPA before making decisions.

Find the Right SaaS Price

Pricing is the single most important decision for any SaaS business. Too low and you leave money on the table. Too high and you kill growth. This calculator helps you find the sweet spot by analyzing the relationship between price, churn, and customer lifetime value.

LTV (Lifetime Value) is the most important SaaS metric. It tells you how much revenue you can expect from a customer. A healthy LTV:CAC ratio is 3:1 or higher.

Monthly vs Annual Pricing

Annual plans typically offer a 15-20% discount but improve cash flow and reduce churn. Annual customers tend to stick around longer because they have prepaid. Our calculator compares both options.

FAQ

For B2B SaaS, 3-5% monthly churn is average. Under 3% is good. Under 1% is exceptional. For B2C, 5-10% is normal.

Improve onboarding, offer annual discounts, add features customers request, provide better support, and implement win-back campaigns for canceled users.

A ratio of 3:1 or higher is considered healthy. Below 1:1 means you are spending more to acquire a customer than they will ever pay you.

Did You Know?

Reducing SaaS monthly churn from 5% to 3% can nearly double your average customer lifetime from 20 months to 33 months — increasing LTV by approximately 65%. For a product priced at $29/month, that is an extra $377 per customer in gross revenue. Use our Profit Margin Calculator to see how improved LTV flows to your bottom line.