SaaS Pricing Calculator

The SaaS Pricing Calculator turns your pricing tiers into a clear revenue projection. Enter the price, billing model, and expected customers for up to three tiers, and the tool calculates your Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR), shows how revenue is split across tiers, maps your Good-Better-Best pricing ladder, and projects how churn erodes ARR over a year. It supports both per-seat and per-account pricing and several currencies, so it works for self-serve, sales-led, and usage-based SaaS models alike.

What Is Recurring Revenue (MRR and ARR)?

MRR is the predictable subscription revenue your product earns each month. ARR is that figure annualized — for a pure subscription business, ARR is simply MRR multiplied by 12. These two numbers are the heartbeat of any SaaS company: investors value SaaS businesses on ARR multiples, and almost every other metric (growth rate, burn multiple, magic number) is measured against them.

SaaS ARR Formula

The calculation builds up from a single tier to your whole price book in three short steps.

If you bill annually with a discount, the list price is multiplied by (1 − discount) before the MRR is calculated, so the projection reflects the lower effective monthly price your customers actually pay.

Per-Seat vs Per-Account Pricing

Choosing a pricing model is one of the highest-leverage decisions in SaaS. The two most common structures are:

This calculator handles the per-seat and per-account models directly. For usage-based pricing, enter your expected average revenue per customer as a flat per-account price.

Why the Good-Better-Best (3-Tier) Model Works

Three tiers is the most widely used SaaS pricing structure, and for good reason. The entry tier removes the barrier to getting started, the middle tier is where you steer most buyers and where the bulk of revenue usually lands, and the premium tier raises the reference price so the middle option looks like the sensible choice. The pricing ladder view in your results shows the step-up multiplier between tiers — a healthy ladder typically jumps 2.5× to 4× between adjacent tiers, large enough to feel distinct without leaving a gap that buyers fall through.

Why Churn Matters So Much

Churn is the silent killer of SaaS growth. Because it compounds every month, even a small monthly churn rate produces a large annual revenue loss. At 2% monthly churn you retain about 78% of your starting ARR after a year with no new sales; at 5% monthly churn that figure drops to roughly 54%. The churn projection in your results makes this compounding visible and ties directly to customer lifetime: average lifetime in months is approximately 1 ÷ monthly churn, so 2% monthly churn implies an average customer stays about 50 months.

How to Use This Calculator

1. Set your global options: Pick a currency, choose monthly or annual billing, set an annual discount if you bill yearly, and enter your expected monthly churn rate.
2. Define your tiers: For each tier, enter a name, a price, whether it is charged per account or per seat, the seats per customer (if per seat), and how many customers you expect.
3. Leave tiers blank to model fewer: A tier is counted only when it has both a price and a customer count, so you can model one, two, or three tiers.
4. Click Calculate: Review your total ARR and MRR, the revenue mix donut, the pricing ladder, blended ARPA, and the churn-adjusted Net Revenue Retention projection.

What Drives Your SaaS Revenue?

Frequently Asked Questions

What is ARR in SaaS?

ARR stands for Annual Recurring Revenue. It is the value of your recurring subscription revenue normalized to a one-year period. For a subscription business ARR equals your Monthly Recurring Revenue (MRR) multiplied by 12. It excludes one-off charges and counts only predictable, recurring subscription income.

How is SaaS ARR calculated?

First calculate the MRR of each pricing tier. For a flat per-account tier, MRR equals price times the number of customers. For a per-seat tier, MRR equals price times seats per customer times the number of customers. Add the MRR of every tier to get total MRR, then multiply by 12 to get ARR.

What is the difference between per-seat and per-account pricing?

Per-account (flat) pricing charges a single price per customer regardless of how many users they have. Per-seat pricing charges per user, so a customer with more seats pays more. Per-seat pricing scales revenue with customer size, while per-account pricing is simpler and easier for buyers to predict.

What is a good number of pricing tiers for SaaS?

Three tiers, often called Good-Better-Best, is the most common and effective structure. It anchors buyers with a clear entry tier, a recommended middle tier where most revenue concentrates, and a high-end tier that raises the perceived value of the others. More than three or four tiers tends to create choice paralysis.

How does churn affect ARR?

Churn is the rate at which customers cancel. With monthly churn and no new customers, your retained ARR after twelve months equals ARR times (1 minus monthly churn) raised to the power of 12. Even a few percent of monthly churn compounds into a large annual revenue loss, which is why retention is central to SaaS growth.

What is ARPA?

ARPA stands for Average Revenue Per Account. It is your total MRR divided by your total number of customer accounts. Blended ARPA across all tiers tells you how much an average customer is worth per month, which is useful for comparing pricing strategies and estimating customer lifetime value.

Additional Resources

• Software as a Service - Wikipedia
• Revenue Stream - Wikipedia