Skip to content
calcbloc
PRICE INCREASE / SAAS

SaaS price increase calculator

See what a price rise does to recurring revenue after the customers it drives away, and how many customers you could lose before the rise stops paying off.

By the CalcBloc teamLast verified Updated

Your details

01Today

02The change

Extra MRR from the price rise

$2,250

+4.5% MRR · $27,000 a year

MRR change, %
4.5%
MRR after the change
$52,250
Break-even churn
9.091%
Customers lost
50
  • New MRR = customers × (1 − extra churn) × price × (1 + increase) = 1000 × 95% × $50.00 × 110%.
  • Break-even churn = increase ÷ (1 + increase) = 9.09%: a 10% rise still pays off unless more than 9.09% of customers leave because of it.
  • This is the immediate effect. Customers who stay also pay more for the rest of their lifetime, while those who leave also stop any future expansion; grandfathering existing customers delays both.

Extra MRR from the price rise: $2,250 +4.5% MRR · $27,000 a year

Before and after
Show the breakdownBeforeAfter
Customers1,000950
Price per month$50.00$55.00
MRR$50,000$52,250
ARR$600,000$627,000
MRR before and after
  • Before$50,000
  • After$52,250

$2,250

+4.5% MRR · $27,000 a year

How it's calculated

A price rise brings in more from every customer who stays but loses the customers it drives away. The calculator compares recurring revenue before and after, and works out the break-even: the share of customers you could lose before the increase stops paying for itself.

Recurring revenue here means MRR as public SaaS companies define it: the monthly run-rate of committed subscription revenue, multiplied by 12 for ARR.SEC (EDGAR)

The formula

  1. MRR before = customers × price
  2. MRR after = customers × (1 − extra churn) × price × (1 + increase)
  3. Break-even extra churn = increase ÷ (1 + increase)

The break-even comes from setting MRR after equal to MRR before: (1 − c) × (1 + i) = 1, so c = i ÷ (1 + i).

Worked example

Raising a $50 plan by 10% for 1,000 customers and losing 5% of them takes MRR to $52,250, a change of $2,250. You could lose up to 9.091% of customers before the rise cost revenue.

+10% on a $50 plan, 5% of 1,000 customers leaveBREAK-EVEN CHURN 9.1%
LineBeforeAfter
Customers1,000950
Price per month$50.00$55.00
MRR$50,000$52,250
ARR$600,000$627,000

A 20% rise with the same 5% loss adds $7,000 a month; its break-even churn is 16.667%.

Assumptions and limitations

  • Immediate effect only. Customers who stay pay the higher price for the rest of their lifetime, and those who leave also take future upgrades with them.
  • Everyone moves to the new price. Grandfathering existing customers delays both the gain and the churn.
  • New-customer conversion may also change; model that with the trial conversion calculator.
FAQ

Questions people ask

How do I calculate the effect of a price increase?

New recurring revenue = current customers × (1 − share who leave because of the increase) × current price × (1 + increase). Compare it with current customers × current price. Raising a $50 plan by 10% for 1,000 customers and losing 5% of them takes MRR from $50,000 to 950 × $55 = $52,250.

How many customers can I lose before a price increase stops paying off?

The break-even share is the increase divided by one plus the increase. For a 10% rise it is 0.10 ÷ 1.10, about 9.1%: you could lose just over 9% of customers and still have the same revenue. A 20% rise breaks even at about 16.7%. Most price rises lose far fewer customers than that.

Should I grandfather existing customers?

Keeping existing customers on the old price avoids churn and complaints but delays the revenue gain to new customers only. A common middle ground is to give existing customers notice and a period at the old price, or a smaller increase. The calculator shows the full effect if everyone moves to the new price.

Does a price increase affect new customer conversion?

It can. A higher price may lower the share of trials or leads that convert, which slows growth from new customers. The calculator covers the effect on your existing base. Use the trial conversion calculator to see what a lower conversion rate would mean for new MRR.

How often should SaaS companies raise prices?

There is no fixed rule. Many companies review pricing yearly and raise prices when they add significant value, move upmarket or when costs rise. Linking increases to new features or packaging changes makes them easier to explain, and giving clear notice reduces churn.

Sources

  1. U.S. Securities and Exchange Commission (EDGAR)Datadog, Inc. Form 10-K for 2025: ARR and MRR definitions; dollar-based net retention rate · retrieved 2026-10-20

By the CalcBloc teamLast verified Updated

How every figure is checked: methodology.