SaaS businesses must price subscriptions to cover hosting, customer support, ongoing development, and customer acquisition while accounting for churn.
Optimize your pricing strategy with AI-powered insights
Enter your shop name for a personalized PDF report with your business name.
How many items do you expect to sell each month?
💡 Why needed? Fixed costs (Rent/Labor) must be split by each item. Lower sales = Higher cost per item. We need this to calculate your min break-even price.
Percentage of items that are wasted or unsold.
✅ Price is above break-even $18.35. You are making profit!
How much will you charge for one item?
Net Profit
$3325
per month
Margin
26.6%
profit margin
Break-Even
312
units/month
✓ Margin Detected: Your 26.6% profit margin is healthy for the cafe industry. You need to sell 312 units to break even, currently projecting 500 units.
Required Volume Growth ≥17% to break even
Current Expectation: 30% ✅
SaaS pricing is about recurring economics, not unit cost: monthly recurring revenue (MRR), churn, and the ratio of lifetime value to customer acquisition cost. Healthy SaaS keeps monthly churn under ~5% and aims for an LTV at least 3× CAC. Hosting and support cost little per user, so price on value with tiers — and remember that reducing churn lifts revenue more than chasing new signups.
Hosting a user costs cents; the software's value is what justifies the price. Cost-plus pricing dramatically undercharges for the problem solved.
If 8% of customers leave monthly, growth leaks out the bottom. High churn means the price must fund constant re-acquisition, or net growth stalls.
One price fits no one well. Tiers by usage, seats or features capture solo users and enterprises at the value each gets.
If it costs months of subscription to acquire a customer who churns quickly, you lose money on growth. Keep LTV comfortably above CAC.
Once your pricing works, these are the tools small operators use to take payments, keep books, and market.
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Price on the value delivered with tiered plans, not on hosting cost. Track MRR, keep churn under ~5% monthly, and ensure lifetime value is at least 3× acquisition cost. The calculator above helps model the unit economics.
Churn determines how long a customer pays you. At 8% monthly churn the average customer lasts only about a year, so your price and onboarding must recover acquisition cost well before they leave.
A common benchmark is LTV at least 3× CAC. If acquiring a customer costs more than a third of their lifetime value, growth becomes unprofitable and pricing or retention needs work.
Yes. Tiers by seats, usage or features let you capture solo users, small teams and enterprises at prices matched to the value each derives, raising average revenue per account.
Reducing churn usually compounds harder — retained customers keep paying and expand. That said, many SaaS products are underpriced, so value-based price increases and lower churn together drive the most growth.
Many small business owners use the "3x material cost" rule or simply match competitor prices. The problem? This ignores your unique cost structure. Your rent might be higher, your waste rate different, or your labor costs vary by location. This calculator reveals your true break-even point and ensures sustainable pricing.
Download a clean, shareable PDF of your pricing breakdown — cost structure, break-even point, and profit scenarios — completely free, with no sign-up. Useful for partners, lenders, or your own records.