SaaS Pricing Calculator
Calculate MRR, ARR, churn impact and net new MRR for your SaaS.
⚖️ LTV / CAC ratio calculator
The LTV:CAC ratio tells you whether your business model is sustainable. The industry benchmark is 3:1 — every $1 spent acquiring a customer should return $3 in gross profit over their lifetime. Below 1:1 means you are losing money on every customer you acquire.
📈 12-month MRR growth projector
This projection applies your growth and churn rates from the main calculator compounded month-over-month. The gap between growth and churn determines whether your MRR expands, plateaus, or contracts.
📐 SaaS metrics reference
These are the metrics every SaaS founder, investor, and operator needs to know. They form the standard language of SaaS performance reporting — from seed-stage board decks to IPO filings.
| Metric | Full name | Formula | Benchmark |
|---|---|---|---|
| MRR | Monthly Recurring Revenue | Active customers × avg monthly price | Track monthly; target >10% MoM at early stage. |
| ARR | Annual Recurring Revenue | MRR × 12 | Primary metric for Series A+ fundraising and valuation. |
| Churn rate | Monthly customer churn | Lost customers ÷ start-of-month customers | Target <2%/mo. Best-in-class: <0.5%/mo. |
| NRR | Net Revenue Retention | (Start MRR + expansion − churn) ÷ start MRR | >100% NRR means revenue grows from existing customers alone. |
| CAC | Customer Acquisition Cost | Total S&M spend ÷ new customers | Payback period target: <12 months for SMB, <18 for enterprise. |
| LTV | Customer Lifetime Value | ARPU × gross margin × avg customer lifetime | LTV:CAC ratio should be 3:1 or higher. |
| ARPU | Avg Revenue Per User | MRR ÷ active customers | Improve via upsell, cross-sell, and tier expansion. |
| Quick ratio | SaaS Growth Efficiency | (New + expansion MRR) ÷ (churn + contraction) | >4 is excellent; below 1 means you are shrinking. |
🧭 SaaS pricing models compared
The pricing model you choose determines your revenue ceiling, sales motion, and churn dynamics. Here are the six main models and when each makes sense.
Charge per user/seat per month. Simple to understand and scales revenue with team growth. Works well for collaboration tools (Figma, Notion, Slack). Downside: customers resist adding seats and may share logins.
Charge based on consumption — API calls, data processed, emails sent. Revenue scales directly with customer success. Stripe, Twilio, and AWS use this model. Downside: unpredictable MRR and harder to forecast revenue.
Offer 2–4 fixed plans (e.g. Starter/Pro/Business) with different feature sets. The most common SaaS model. Middle tiers drive the most revenue. Create clear upgrade triggers between tiers to drive expansion MRR.
Offer a free tier to acquire users and convert a percentage to paid. Works when the conversion rate is 2%+ and CAC is near zero. Viral or PLG (product-led growth) products use this. Risk: free users create support costs without revenue.
Price based on the economic value delivered to the customer rather than costs or competitors. Requires deep understanding of customer ROI. Leads to significantly higher prices — and is the approach most SaaS companies underutilise.
Combine a base subscription with usage-based add-ons or feature modules. Lets you capture more revenue from power users without raising base prices. Common in enterprise SaaS where contracts are custom.
💡 6 proven strategies to reduce SaaS churn
Reducing monthly churn from 5% to 2% more than doubles your average customer lifetime — and because LTV compounds with retention, the revenue impact is larger than most founders expect.
Track product usage data — login frequency, feature adoption, and support ticket volume. Customers who stop using key features 2–4 weeks before renewal are at high churn risk. Proactive outreach at this stage saves the majority of at-risk accounts.
The first 30–60 days determine whether a customer becomes a long-term user or churns at renewal. A structured onboarding sequence — product tours, check-in emails, a dedicated CSM for larger accounts — dramatically improves retention.
Annual customers churn at roughly 3–4× lower rates than monthly customers. They are more committed and you collect a year's revenue upfront. Offer a 15–20% discount for annual vs. monthly to drive the switch — it almost always pays off.
The more integrated your product is with a customer's workflow — through integrations, data, custom configurations — the higher the cost of switching. Design your onboarding to increase these switching costs in a way that genuinely benefits the customer.
Roughly 20–30% of churned customers will resubscribe if you contact them 60–90 days after churning with a relevant offer or new feature announcement. Churned customers have zero CAC and already know your product.
Exit surveys completed within 24 hours of cancellation have 3–5× higher response rates than those sent later. Keep it short: one multiple-choice question ("Why did you cancel?") with an optional text box. The insights are worth more than the churn event itself.
❓ Frequently asked questions
All calculations are based on the inputs provided and simplified financial models. Actual SaaS performance depends on many factors including market conditions, competitive dynamics, product quality, and operational execution. Benchmarks cited are based on publicly available SaaS industry research and are for reference only.
MRR = Active users × Monthly price ARR = MRR × 12 Churn loss = MRR × monthly churn rate Net new MRR = New MRR from growth − Churned MRR Target: Net new MRR > 0 to grow. Keep monthly churn below 2% for healthy retention.