SaaS Pricing Calculator with Tiers
Calculate SaaS pricing with complete tier analysis. Learn subscription models, revenue forecasting, and pricing strategy. Free calculator.
Quick Answer
Revenue = (Basic Users × Basic Price) + (Pro Users × Pro Price) + (Enterprise Users × Enterprise Price). Common tiers: $9-29 (Basic), $29-99 (Pro), $99+ (Enterprise). Essential for SaaS revenue modeling, pricing strategy, and business planning.
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Calculate With Full ToolWhat is SaaS Pricing with Tiers?
SaaS pricing with tiers offers multiple subscription levels at different price points, each with varying features and usage limits. This tiered approach allows businesses to capture different market segments, from individual users to large enterprises, while maximizing revenue and customer satisfaction.
How Tiered Pricing Works
Each tier targets specific customer segments with appropriate features and pricing. Basic tiers offer core functionality at lower prices, while premium tiers include advanced features, higher limits, and better support. This structure encourages customer upgrades as needs grow, creating natural revenue expansion.
Revenue Optimization
Effective tiered pricing balances customer acquisition costs, retention rates, and average revenue per user (ARPU). The goal is to create upgrade paths that provide clear value justification while maintaining competitive positioning in the market.
SaaS Pricing Formulas
Monthly Revenue = Σ(Tier Users × Tier Price)
ARPU = Total Revenue ÷ Total Users
Churn Rate = Lost Customers ÷ Total Customers
Common Tiers: Basic ($9-29), Pro ($29-99), Enterprise ($99+)
Upgrade Rate: % of users moving to higher tiers
LTV/CAC Ratio: Lifetime Value ÷ Customer Acquisition Cost
Monthly Recurring Revenue (MRR): Sum of all subscription revenue
Annual Recurring Revenue (ARR): MRR × 12
Step-by-Step Example
Example: Three-tier SaaS pricing model
Step 1: Basic: 1,000 users × $19 = $19,000/month
Step 2: Pro: 500 users × $49 = $24,500/month
Step 3: Enterprise: 50 users × $199 = $9,950/month
Step 4: Total MRR: $19,000 + $24,500 + $9,950 = $53,450
Step 5: ARPU: $53,450 ÷ 1,550 = $34.48 per user
Step 6: Annual ARR: $53,450 × 12 = $641,400
Example: Revenue with 20% upgrade rate
Step 1: Initial: 1,000 Basic users = $19,000 MRR
Step 2: After 6 months: 200 upgrade to Pro
Step 3: New MRR: 800 Basic × $19 + 200 Pro × $49 + 50 Enterprise = $36,350
Step 4: Additional revenue: $36,350 - $19,000 = $17,350
Step 5: Growth rate: 17,350 ÷ 19,000 = 91.3% increase
Step 6: New ARPU: $36,350 ÷ 1,050 = $34.62 (+$0.14)
These examples show how tiered pricing creates revenue growth through customer upgrades. Even modest upgrade rates can significantly impact monthly recurring revenue and average revenue per user metrics.
Who Should Use This Calculator?
SaaS Founders
Design pricing tiers and revenue models
Product Managers
Analyze pricing strategy and positioning
Revenue Teams
Forecast subscription revenue and growth
Investors
Evaluate SaaS business models
Frequently Asked Questions
How many pricing tiers should I have?
Most successful SaaS companies use 3-4 tiers. Too few tiers limit revenue potential, while too many tiers can confuse customers. Start with Basic, Pro, and Enterprise, adding more tiers only if your product serves distinct market segments.
What's the best pricing strategy?
The best strategy aligns price with value delivered, targets different customer segments, encourages upgrades through clear feature differentiation, and maintains competitive positioning while maximizing lifetime value (LTV) and customer acquisition cost (CAC) ratios.
How do I calculate customer lifetime value?
LTV = (ARPU × Customer Lifetime) - Customer Acquisition Cost. For subscription businesses, LTV is typically 3-5x the first month's revenue. Track this metric to ensure pricing tiers are sustainable and profitable.
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