About the SaaS Pricing Calculator
What is the SaaS Pricing Calculator?
This saas pricing calculator sets a monthly price that covers your costs at your target user count and leaves the margin you want.
It then checks the unit economics investors look at: LTV, LTV:CAC and CAC payback.
How to use the SaaS Pricing Calculator
- Monthly Fixed Costs – team, tools, office (₹) (sample: 2,50,000)
- Variable Cost per User – hosting, support (₹ a month) (sample: 120)
- Target Paying Users (sample: 1,000)
- Target Profit Margin (%) (sample: 30)
- Monthly Churn (%) (sample: 3)
- Customer Acquisition Cost (₹) (sample: 3,000)
- Press Price My SaaS (results also refresh as you type). The result card shows the Recommended Monthly Price, along with Annual plan (2 months free), Cost per user, Gross margin and Monthly recurring revenue at target.
Formula used
Price = (Fixed costs ÷ Users + Variable cost) ÷ (1 − Target margin); LTV = Price × Gross margin ÷ Churn
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly Fixed Costs – team, tools, office (₹) | 2,50,000 |
| Variable Cost per User – hosting, support (₹ a month) | 120 |
| Target Paying Users | 1,000 |
| Target Profit Margin (%) | 30 |
| Monthly Churn (%) | 3 |
| Customer Acquisition Cost (₹) | 3,000 |
| Result | Value |
|---|---|
| Recommended Monthly Price | ₹528.57 |
| Annual plan (2 months free) | ₹5,286 |
| Cost per user | ₹370 |
| Gross margin | 77.3% |
| Monthly recurring revenue at target | ₹5,28,571 |
| Customer lifetime value | ₹13,619 |
| LTV : CAC | 4.5× |
| CAC payback | 7.3 months |
Tips for using the SaaS Pricing Calculator
- Price on value to the customer, then check that costs are covered – not the other way round.
- Annual plans with two months free improve cash flow and reduce churn.