SaaS Pricing Calculator
Model your pricing strategy using cost-plus pricing or work backwards from an ARR target. Built for founders and indie hackers.
How to Price a SaaS Product in 2025
Pricing a SaaS product is one of the most consequential decisions you'll make. Price too low and you attract the wrong customers and leave money on the table. Price too high before you've proven value and you'll slow growth. Most successful SaaS companies go through two or three major pricing iterations before finding their equilibrium.
Cost-plus pricing is a great starting point: add up what it costs to serve a customer, then apply your target margin. This ensures you're never selling at a loss. But the ceiling for this approach is low — the best SaaS companies price based on value delivered, not cost incurred.
Value-based pricing means charging a fraction of what your software saves or earns for the customer. If your tool saves a business $5,000 per month in labor, charging $500/month is a no-brainer for them. Anchor your conversations around that ROI, not your infrastructure bill.
Understanding MRR, ARR, and Churn Rate
Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue from all active subscriptions. Annual Recurring Revenue (ARR) is simply MRR × 12. These are the two metrics investors care most about because they measure the size and quality of your revenue stream.
Churn rate is the percentage of customers who cancel each month. A 2% monthly churn sounds low, but it means you're losing roughly 22% of your customer base every year. At 5% monthly churn, you'd need to replace nearly half your customers just to stay flat.
The new customers needed per month figure in the MRR Planner accounts for churn. To grow, you must acquire more customers than you lose. Focus on both sides of that equation: reduce churn through product improvements and onboarding, and increase acquisition through marketing and sales.