SaaS Pricing Tier Optimizer
Stack up to three packages with real conversion and cost-to-serve , see MRR, ARR, blended margin, and how shifting mix moves the margin curve before you publish new prices.
100% client-side. No pricing spreadsheet leaves this tab.
Tune conversion, annual mix, and up to three tiers, feature bullets are for your own packaging notes and do not change the math.
Total MRR
$8,272
ARR estimate
$99,264
Blended margin
89.1%
Paying customers
200
MRR contribution by tier
Blended margin sensitivity (model only)
Curve sweeps Starter share from 50%–90% while Pro takes the remainder.
Tier 1
HealthyFeatures (labels only)
Tier 2
HealthyFeatures (labels only)
Per-tier economics
| Tier | Customers | MRR | Monthly cost | Gross | Margin |
|---|---|---|---|---|---|
| Starter | 140 | $3,816 | $420 | $3,396 | 89.0% |
| Pro | 60 | $4,456 | $480 | $3,976 | 89.2% |
How does the SaaS Pricing Tier Calculator work step by step?
Most SaaS products sell through two or three pricing tiers, each with a different price and a different cost to serve. This calculator starts at the top of your funnel: monthly website visitors multiplied by your free-to-paid conversion rate gives total paying customers. Those customers split across tiers by the percentage you assign. Per-tier MRR combines monthly and annual billing: monthly billing MRR = tier customers x (1 - annual plan %) x tier price; annual billing MRR = tier customers x (annual plan %) x tier price x (1 - annual discount). Cost-to-serve per user is subtracted from each tier to show gross margin per tier. Two warning badges appear automatically: orange when a tier margin falls below 20%, red when cost-to-serve equals or exceeds tier price. The blended margin across all tiers gives a company-level profitability metric at your current traffic and conversion assumptions.
What does a typical SaaS Pricing Tier Calculator result look like?
10,000 visitors. 2% conversion rate. 200 paying customers. 30% on annual billing with a 20% discount. Starter $29/month at 60% customer split: tier MRR $3,271, margin 89%. Pro $79/month at 30% split: tier MRR $4,456, margin 89%. Business $199/month at 10% split: tier MRR $3,741, margin 89%. Total MRR $11,468, ARR $137,616, blended margin 89.2%. Despite Starter having 60% of customers, Pro generates the most MRR. If Business cost-to-serve rises to $199, the red badge appears and that tier loses money per user.
Frequently asked questions
How many pricing tiers should a SaaS product have?
Three tiers is the standard for most SaaS products. The lowest tier anchors price-sensitive buyers, the middle tier captures the majority of revenue (typically 50% to 60% of MRR), and the top tier serves power users or teams. Two tiers works for early-stage products that have not yet differentiated enough to justify a third.
What is a good SaaS gross margin?
70% to 85% for software businesses. Below 60% suggests your hosting, support, or third-party API costs are too high relative to revenue. Margins vary by tier. Lower tiers often have higher margins in percentage terms because cost-to-serve is low, but they contribute less in absolute dollars. Use this metric consistently over time to track improvement rather than optimizing for a single period's snapshot.
How do I estimate cost-to-serve per user?
Add your monthly hosting or infrastructure costs, customer support costs, and any third-party API fees that scale with users. Divide by your active user count. For SaaS with tiered features, higher tiers typically have higher cost-to-serve because they access more compute, storage, or premium integrations.
What free-to-paid conversion rate should I enter?
2% to 5% is typical for product-led SaaS with a freemium or free-trial model. Sales-led products may show 10% to 30% from qualified leads. If you do not have conversion data yet, start with 2% as a conservative baseline and adjust as you collect real numbers.
What is a typical annual billing discount?
15% to 25% off the monthly rate is standard. A 20% discount means a $79/month plan costs $758/year instead of $948/year. The discount reduces per-user revenue but improves cash flow and reduces churn because annual customers are locked in for a full year. Use this metric consistently over time to track improvement rather than optimizing for a single period's snapshot.
Why does the tool show an orange badge on my tier?
An orange badge appears when a tier's gross margin drops below 20%. At margins this thin, a small increase in support tickets, API usage, or infrastructure costs can push the tier into negative territory. Consider raising the price, reducing cost-to-serve, or merging the tier into a higher one.