SAAS PRICING

SaaS Pricing Calculator

Model SaaS price, variable cost per user, subscriber count, and target gross margin to see monthly revenue, profit, and the minimum price your economics require.

SaaS pricing details

This calculator auto-updates when values change.

Test price, cost, users, and margin for a simple SaaS tier.

Monthly gross profit

£17,250

750 users at £29 generate £21,750 monthly revenue with an estimated 79.3% gross margin.

Monthly revenue

£21,750

Monthly costs

£4,500

Gross margin

79.3%

Target price

£24

This calculator is for general business planning only and is not financial, tax, legal, accounting, or professional advice.

SaaS price must cover delivery, support, and growth

Subscription pricing is not only competitor matching — it must cover variable cost per user, leave gross margin for support and infrastructure, and still fund acquisition and product development. A price that wins demos can still fail unit economics.

This calculator models monthly revenue, costs, gross profit, and margin % at your price and user count, plus a target price implied by cost and desired margin.

Use the SaaS pricing tier packaging calculator when you need to compare several tiers, seat minimums, add-ons, annual discounts, and tier mix rather than one simple plan.

Subscription pricing is not only competitor matching — it must cover variable cost per user, achieve gross margin that funds support and infrastructure, and still leave room for acquisition and product investment. A price that wins demos can fail unit economics.

Use with SaaS pricing tier packaging calculator, usage-based billing calculator, LTV vs CAC breakeven calculator, and churn impact calculator before scaling paid acquisition.

Worked example: £29/user, £6 cost, 750 users, 75% target margin

At £29 per user and 750 users, monthly revenue is £21,750. Cost at £6 per user = £4,500, gross profit £17,250.

Gross margin ≈ 79.3% — above the 75% target. Minimum price for 75% margin on £6 cost is £24 per user (cost ÷ 0.25).

Acquisition, churn, and support still sit below gross profit — use with LTV:CAC and churn tools before scaling spend.

If users fall 20% to 600, revenue drops to £17,400 but many costs still scale with users — retest margin before cutting price to win deals.

When to rerun pricing before you launch or change tiers

Run the same maths for each tier with different usage-based costs. Enterprise tiers with human onboarding may need higher price or lower margin target.

Sensitivity-test user count ±20% — SaaS forecasts often miss activation and churn early on.

Before launching a new tier, cutting price for enterprise, or adding usage-based components that raise cost per user.

When infra or API costs shift — margin can erode without a headline price change.

When mixing annual and monthly plans — convert to monthly equivalent price for comparison in this tool.

SaaS pricing mistakes before scale

Pricing from competitor pages without knowing your cost structure. Ignoring payment fees and infra that scale per seat.

Setting target margin on revenue while forgetting CAC payback needs cash, not just accounting margin.

Matching competitor list price while their infra cost per seat is half yours — margin maths differ even at same price.

Treating payment fees as immaterial on £15/mo plans — 2.9% + 30p is meaningful at low ARPU.

Cutting price 20% to hit enterprise logo without modelling support and onboarding cost per seat — gross margin can collapse while MRR chart looks better.

How SaaS margin and target price are calculated

Monthly revenue = price × users. Monthly costs = cost per user × users. Gross profit = revenue − costs. Gross margin % = gross profit ÷ revenue × 100.

Target price = cost per user ÷ (1 − target margin ÷ 100). Example: £6 at 75% margin → £24 minimum price before any CAC or fixed engineering.

Cost per user should include variable hosting, support load, usage-based APIs, and payment fees — not fixed payroll unless you allocate per seat.

Five levers beyond headline price

Reduce cost per user via architecture and support deflection.

Annual prepay improves cash; model separately from margin on delivery.

Seat minimums on enterprise tiers to cover onboarding cost.

Usage caps on expensive API features.

Packaging so high-cost users sit on higher tiers — see SaaS pricing tier packaging calculator for multi-tier plan mix and freemium viability calculator if you serve free users.

Packaging tiers so margin scales with value

Run this calculator per tier — enterprise with heavy support may need £45 seat while self-serve stays at £29 on £6 cost. For several plans at once, use the SaaS pricing tier packaging calculator so blended average does not hide weak tiers subsidised by strong ones.

Annual prepay improves cash but does not change monthly delivery cost — model margin on monthly equivalent revenue when comparing to monthly plan.

Before freemium at scale, check freemium viability calculator — free users raise cost per user in the denominator of sustainable pricing.

Anchor middle tier as the default — good/better/best packaging steers most buyers to the tier with best margin, not the cheapest entry point.

Review COGS per tier when usage-based costs rise — AI or API-heavy features may need metered overage even on "unlimited" marketing labels. Model the allowance in usage-based billing calculator.

Before discounting annual plans, confirm LTV impact in LTV calculator — annual prepay helps cash but deep discounts can hurt unit economics if churn is front-loaded.

How to review SaaS pricing each quarter

Rerun per tier when infra or API cost per user moves — margin erodes without headline price changes.

Before scaling ads, confirm LTV vs CAC breakeven calculator on gross-profit LTV.

If freemium grows, check freemium viability calculator — free users change blended economics.

What this SaaS pricing calculator covers

This page should target SaaS pricing calculator, SaaS margin calculator, price per user calculator, subscription pricing calculator, and SaaS unit economics pricing searches where the user needs a simple tier-level margin model.

It calculates monthly revenue, delivery cost, gross profit, gross margin, and a target price from cost per user and target margin. It does not design full pricing tiers, model usage-based billing bands, forecast churn, calculate CAC, optimise discounts, or validate willingness to pay. Use SaaS pricing tier packaging calculator for multi-tier packaging, seat minimums, add-ons, annual discounts, and tier mix; use usage-based billing calculator for included usage and overage maths; use LTV/CAC, churn, freemium, survey, or pricing-research tools for the rest.

Model SaaS price and gross margin

  1. 1

    Enter monthly price per user

    List or effective price for the tier you are testing.

  2. 2

    Add monthly cost per user

    Hosting, support share, third-party API, and variable delivery.

  3. 3

    Set expected paying users

    Active subscribers on this tier or blended average.

  4. 4

    Compare actual margin and target price

    See if current price meets target margin; adjust price or cost inputs. This calculator auto-updates when values change.

SaaS pricing: common questions

What gross margin should SaaS target?

Many subscription businesses aim for 70–80%+ on delivery, but definitions of cost vary. Be consistent when comparing tiers.

How is target price calculated?

Cost per user ÷ (1 − target margin). At £6 cost and 75% margin, minimum price is £24.

Should I include CAC in this calculator?

No — this is gross margin on serving users. Use LTV vs CAC tools for acquisition sustainability.

What counts as cost per user?

Variable costs that grow with each subscriber: infra, usage-based APIs, support load share — not fixed engineering payroll unless allocated.

How do annual plans affect this?

Convert to monthly equivalent revenue and spread servicing cost the same way for apples-to-apples comparison.

When is gross margin high but the business still struggles?

High CAC, churn, or heavy free tiers can burn cash despite strong unit delivery margin — model those separately.

Disclaimer: This calculator is for general business planning and education. It does not provide tax, legal, accounting, or investment advice. Check important decisions against real financial records and qualified professionals where appropriate.