Pricing

Free SaaS pricing model and LTV calculator

By Charles Summers · Updated · Free, no signup

Short answer

This calculates your implied customer lifetime value from price and churn, then builds the tier structure that fits your chosen pricing model, with actual computed price points, not generic advice. It sets the anchor tier near 2.5 times your current price and the entry tier near 0.4 times, derives the maximum CAC your economics can support, and names the specific retention mechanic (free-to-paid conversion, trial conversion, usage expansion) that matches the model you picked. All arithmetic, no guessing.

Use the saas pricing model calculator

What does this tool actually do?

This calculates your implied customer lifetime value from price and churn, then builds the tier structure that fits your chosen pricing model, with actual computed price points, not generic advice. It sets the anchor tier near 2.5 times your current price and the entry tier near 0.4 times, derives the maximum CAC your economics can support, and names the specific retention mechanic (free-to-paid conversion, trial conversion, usage expansion) that matches the model you picked.

It runs entirely in your browser. Nothing you type is sent to a server, no account is required, and there is no usage limit, because there is no cost per run to control.

What does the output look like?

This is the exact output the tool produces from the example inputs. It is generated by the same code that runs when you click the button, so what you see here is what you get.

INPUTS Price: $49/mo · Customers: 340 · Monthly churn: 3.5% · Model: 3-tier UNIT ECONOMICS MRR $16,660 ARR $199,920 Avg. customer lifetime 28.6 months LTV (ARPU / churn) $1,400 Annualized churn rate 34.8% Revenue at risk / year $69,548.1 TIER STRUCTURE (computed) Entry $20/mo (0.4x current price, widens the funnel) Core $49/mo (your current price, the tier most people pick) Anchor $123/mo (2.5x current price, makes Core look reasonable) CAC GUARDRAILS Max CAC for 3:1 LTV:CAC $466.67 Max CAC for 12-mo payback* $441 *assumes 75% gross margin, a standard SaaS benchmark since this tool does not collect COGS. Compare both to what you actually spend to acquire a customer. Whichever is lower is your real ceiling. RETENTION MECHANIC: tier migration If 20% of your 340 customers migrate from Core to Anchor over 12 months, blended ARPU moves from $49 to $63.8, a 30.2% lift with zero new customers. Track upgrade rate as the leading indicator, not just churn.

Frequently asked questions

Why is LTV just ARPU divided by churn? Isn’t that oversimplified?

It is simplified on purpose. The full formula weights in gross margin and discount rate, but ARPU/churn is the number every SaaS benchmark deck actually quotes, so it is the one your investors and your CAC targets are measured against. This tool shows the raw figure and flags when churn is high enough (over 8% monthly) that the simplification meaningfully overstates real lifetime value.

Where does the 2.5x anchor and 0.4x entry tier come from?

From how price anchoring works in practice: a tier priced at roughly 2.5 times your core price makes the core tier look like the reasonable middle choice, and an entry tier around 0.4 times widens the top of your funnel without cannibalizing the core price. These are starting points to test, not a law, but they are the ratios that show up repeatedly in three-tier SaaS pricing pages that convert well.

What if I do not know my CAC?

This tool does not ask for it. Instead it computes the maximum CAC your current economics can support, both for a 3:1 LTV to CAC ratio and for a 12-month payback assuming a 75% gross margin. Compare those two numbers to what you actually spend to acquire a customer. If your real CAC is above either figure, that is the problem to fix before you touch pricing.

Does the pricing model actually change the math, or just the wording?

It changes the math. Freemium and free-trial models get a computed funnel-volume requirement (how many free users or trials you need to sustain your current paid base at typical conversion rates). Usage-based gets a net revenue retention framing instead of a logo-retention one. Flat pricing gets a specific warning that it forfeits per-account expansion revenue, with the ARR consequence spelled out. These are not reworded paragraphs, the underlying numbers differ by model.

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