SaaS pricing calculator

A monthly price from your cost to serve and target margin, and how many customers that price needs to hit your revenue goal.

Cost to serve one customer A month: hosting, support, payment fees

Target gross margin Percent. Healthy SaaS runs at 70 to 80

Monthly revenue target

Monthly churn Percent of customers who cancel each month

Price a month$48

Customers needed417

New customers a month to stand still17

Lifetime value at this price$1,200 25 months

The price comes from the margin you want on the cost of serving a customer: cost divided by one minus the target margin. At $12 a month and a 75% margin that is $48. The revenue target divided by that price is the customer count you need.

Churn is what makes the count hard to hold. Four percent a month means the average customer stays 25 months, and that you must sign a new one for every 25 you have, every month, just to stay level. A price that looks fine at 2% churn can be unworkable at 6%.