SaaS Pricing Calculator
Calculate optimal SaaS subscription tier pricing based on unit COGS (hosting, AI tokens, support), target gross margin percentages, and annual discount incentives.
Value Metric & Margin Economics
Cost-Floor Monthly Price$40.00 / mo$384.00 / yr with 20% discount
Value-Based Recommended Tier$40.00 - $80.0010% - 20% ROI value-capture benchmark
Gross Margin Dollars$32.00 / subAvailable for R&D, sales and profits
Step-by-Step Worked Example
Scenario:
Calculation Steps:
Result:
How to Use This Calculator
Assumptions & Limitations
- COGS includes hosting, third-party API token pass-through, and customer success support.
- High-performing SaaS companies target 75% to 85%+ gross profit margins.
Frequently Asked Questions
Why is gross margin so critical in SaaS pricing?
High gross margins (80%+) provide the gross profit required to fund customer acquisition (CAC), product R&D, and engineering operations without diluting runway.
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