SaaS Pricing Formula
This foundational SaaS pricing formula helps businesses determine the necessary average price per customer to achieve their target revenue, making it crucial for setting initial pricing or evaluating current models.
Formula
Copy the exact expression or work through it step by step below.
Required Price = Target Revenue / Active Customers Variables
RP
Required Price
The cost-side input that anchors the saas pricing math.
TR
Target Revenue
The incoming amount used to size the saas pricing outcome.
AC
Active Customers
The active customers value plugged into the saas pricing calculation.
Step By Step
- 1
Set the baseline case with the real calculator inputs.
Cogs Per User = 28, Target Gross Margin Percent = 80.0%, Target Payback Months = 8, CAC = $450
- 2
Translate rates, periods, and cash values onto the same footing before combining them.
Keep the saas pricing assumptions consistent instead of mixing monthly and annual views.
- 3
Apply the formula and read the first calculator outputs, not just the headline assumption.
The calculator lands with recommended monthly price at $140 and margin floor at $140.
- 4
Run one changed scenario so the formula is stress-tested before it is trusted.
The saas pricing strategy calculator page is the fastest way to compare that second case.
Worked Example
SaaS Pricing sample case
Cogs Per User
28
Target Gross Margin Percent
80.0%
Target Payback Months
8
CAC
$450
Required Price = Target Revenue / Active Customers using cogs per user 28, target gross margin percent 80.0%, target payback months 8, cac $450.
The calculator lands with recommended monthly price at $140 and margin floor at $140.
Common Variations
Try These Tools
Run the numbers next
Wholesale Pricing Calculator
Set wholesale price, retail price, and MOQ revenue from unit cost and overhead using cost-plus, keystone, or target-margin strategies.
Price Elasticity Calculator
Calculate price elasticity of demand and see whether a price change grows or shrinks revenue.
Sources & References
- SaaS Pricing: The Ultimate Guide — Chargebee
- How To Price Your SaaS Product: A Complete Guide — Baremetrics
Related Content
Keep the topic connected
SaaS Pricing Examples
Explore diverse SaaS pricing examples, from freemium to enterprise models. Learn how to strategize your SaaS pricing for different markets and growth stages.
How to Use SaaS Pricing Strategy Calculator
Optimize your SaaS pricing for maximum growth and profitability. Learn to use the SaaS Pricing Strategy Calculator to analyze LTV, CAC, and churn, ensuring sustainable success.
What Is Average Order Value? Simply Explained
Learn what Average Order Value (AOV) is, why it's crucial for e-commerce growth, and how to calculate it. Discover strategies to boost your online store's profitability.