SaaS Pricing Simulator
Model Monthly Recurring Revenue (MRR) growth based on tiered pricing logic. Optimize your ARPU and LTV by adjusting plan distribution.
Funnel Metrics
Pricing Tiers
MRR Composition
Tier Contribution
Where is the money coming from?
Revenue Drivers
Look at the MRR chart. Even if 'Basic' has the most users, 'Pro' or 'Enterprise' should drive the most revenue.
LTV Reality
At $1320 LTV, you can afford to spend up to $440 to acquire a customer (CAC).
ARPU Check
Your blended ARPU is $66.00. If this is too low, you need to push users up-market.
Execution Steps
Enter monthly traffic and free-to-paid conversion rate.
Set prices for your 3 tiers (Basic, Pro, Enterprise).
Adjust the 'Distribution' sliders to match expected user behavior (e.g., most users pick Basic).
See the impact on MRR and Lifetime Value (LTV).
Pro Strategy
- Don't underprice your Enterprise tier. It often accounts for 10% of users but 50% of revenue.
- Use the 'Pro' tier as the anchor. Make it the 'Best Value' to drive users away from Basic.
- Reducing churn has a multiplier effect on LTV. A drop from 5% to 2.5% doubles your LTV.
Core Concepts
ARPU (Average Revenue Per User)
Total Revenue / Total Users. Increasing ARPU is often easier than finding new customers.
Expansion Revenue
Revenue generated from existing customers upgrading tiers. This is the key to net negative churn.
The 'Golden Ratio'
A common healthy SaaS ratio is 3:1 LTV to CAC. Knowing your LTV helps you set your ad budget.
What is SaaS Pricing Simulator?
This model simulates the unit economics of a tiered subscription business. It calculates weighted averages based on user distribution to project monthly revenue and lifetime value.
Best For
- • Launching a new SaaS.
- • Repackaging existing plans.
- • Forecasting revenue for investors.
Limitations
- • Assumes constant conversion rate across all traffic sources.
- • Does not account for variable costs (server usage).
Alternative Methods
LTV/CAC Calculator
Focuses more on acquisition costs.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
CRM Startup
Users were camping on the $10 Basic plan.
Moved 'Integrations' to the $50 Pro plan.