Skip to content
calcbloc
TRIAL FUNNEL / SAAS

Free trial conversion calculator

Turn website visitors into trials, paying customers and new MRR using your sign-up and trial-to-paid rates, with cost per trial and CAC.

By the CalcBloc teamLast verified Updated

Your details

01Funnel

New paying customers a month

100

$4,900 new MRR · $58,800 ARR

Trials started
500
New MRR
$4,900
New ARR
$58,800
Visitor-to-paid conversion
1%
Cost per trial
$20
CAC
$100
  • Customers = visitors × trial sign-up rate × trial-to-paid rate = 10,000 × 5% × 20%; overall 1% of visitors become paying customers.
  • New MRR = new customers × average revenue per account. Measure trial-to-paid on trials that have finished (a 14-day trial started yesterday has not had its chance yet).
  • Improving either rate by the same relative amount has the same effect on customers; the cheaper one to move is usually the right place to start.

New paying customers a month: 100 $4,900 new MRR · $58,800 ARR

The funnel, per month
Show the breakdownCount
Visitors10,000
Start a trial (5%)500
Convert to paid (20%)100
New MRR$4,900
Cost per trial$20.00
CAC (spend ÷ customers)$100.00
Funnel
  • Visitors10,000
  • Trials500
  • Customers100

100

$4,900 new MRR · $58,800 ARR

How it's calculated

A free-trial funnel has two conversion steps: visitors who start a trial, and trials that become paying customers. Multiplying through gives new customers and new recurring revenue, and dividing your acquisition spend by the result gives cost per trial and CAC. Each step's rate affects the outcome equally, so the funnel shows where an improvement would add the most.

CAC is calculated as in David Skok's SaaS metrics guide: sales and marketing spend divided by the number of new customers added.David Skok, For Entrepreneurs

The formula

  1. Trials = visitors × trial sign-up rate
  2. New customers = trials × trial-to-paid rate
  3. New MRR = new customers × average revenue per customer; new ARR = new MRR × 12
  4. Cost per trial = spend ÷ trials; CAC = spend ÷ new customers

Worked example

10,000 visitors a month, 5% of whom start a trial and 20% of those who convert, gives 100 new customers. At $49 a month that is $4,900 of new MRR; with $10,000 of monthly spend, CAC is $100.

10,000 visitors, 5% trials, 20% trial-to-paidTRIAL → PAID 20%
LineCount
Visitors10,000
Start a trial (5%)500
Convert to paid (20%)100
New MRR$4,900
Cost per trial$20.00
CAC (spend ÷ customers)$100.00

Lifting trial-to-paid to 25% brings CAC down to $80 without spending more.

Assumptions and limitations

  • Steady monthly flow. Trials started late in a month convert in the next one; over a few months this evens out.
  • Measure conversion on completed trials only.
  • Single plan price. If customers choose between plans, use the average revenue per new customer.
FAQ

Questions people ask

How do you calculate trial conversion rate?

Trial-to-paid conversion rate = trials that became paying customers ÷ trials that ended in the period. Count only trials that have finished, since a trial started yesterday has not had its chance to convert. If 100 of 500 completed trials became customers, the rate is 20%.

What is a good free trial conversion rate?

It depends on the trial design. Trials that ask for a card at sign-up usually convert a much larger share of trials but attract fewer sign-ups; trials without a card attract more sign-ups and convert fewer of them. Compare the end-to-end visitor-to-paid rate when choosing between the two.

How do I calculate new MRR from my trial funnel?

Multiply visitors by the trial sign-up rate to get trials, multiply trials by the trial-to-paid rate to get new customers, and multiply customers by average monthly revenue per customer. 10,000 visitors at 5% and 20% give 100 customers; at $49 a month that is $4,900 of new MRR.

How does the funnel relate to CAC?

If you know what you spend each month to attract visitors, CAC = spend ÷ new paying customers, and cost per trial = spend ÷ trials. Improving any conversion rate lowers CAC without spending more, which is why funnel work is often the cheapest way to improve unit economics.

Which part of the funnel should I improve first?

A 10% relative improvement in either rate adds the same number of customers, so start with the one that is cheaper to move. Sign-up rate responds to the website and offer; trial-to-paid responds to onboarding, getting users to their first result quickly, and the timing of reminders before the trial ends.

Sources

  1. David Skok, For EntrepreneursSaaS Metrics 2.0 – Detailed Definitions (LTV, CAC, months to recover CAC) · retrieved 2026-10-20

By the CalcBloc teamLast verified Updated

How every figure is checked: methodology.