SaaS Price Increase Calculator
Raising prices is scary. Find out exactly how much churn you can tolerate before a price increase negatively impacts your MRR.
You can afford to lose 379 customers and still maintain your current MRR of $49,000.
What is SaaS Churn Tolerance?
When you raise the price of your SaaS (Software as a Service) product, you will inevitably lose some customers. However, because you are making more money per remaining user, your total revenue might actually go up. Churn Tolerance is the exact percentage of your customer base you can afford to lose while maintaining the exact same Monthly Recurring Revenue (MRR).
How to use the Price Increase Calculator
- Current Active Customers: The total number of paying users on your current pricing tier.
- Current Monthly Price: How much those users are currently paying you per month.
- Proposed New Price: The new price point you want to test or roll out to existing users.
Why Founders Underprice Their Software
Most founders are terrified of raising prices because they fear a mass exodus of users. But the math tells a different story. If you raise your price by 50%, you can often afford to lose over 30% of your user base and still break even. Furthermore, higher prices often attract better customers who require less support and have lower natural churn rates.
The Golden Rule of SaaS Pricing
Never grandfather legacy users forever. Use this tool to calculate your break-even point, send a transparent email to your users explaining the value added since they joined, and execute the price increase. You will almost always retain more users than the break-even threshold.
Frequently Asked Questions
What is the SaaS Churn Calculator?
The SaaS Churn Calculator is a free online tool designed to help you raising prices? calculate exactly how many customers you can afford to lose without dropping your mrr.
How much does the SaaS Churn Calculator cost?
Our SaaS Churn Calculator is 100% free to use. We do not require any signups, subscriptions, or credit cards.
Is my data safe when using this tool?
Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.