SaaS Pricing Strategy Calculator
Set price floors from margin and CAC payback constraints.
Result
- The competitor's price is below the floor your margin and payback targets need with your COGS and CAC.
$140 per user per month is the lowest price that meets both targets; the gross margin target sets it. That is $51 above the competitor.
Price floors vs the competitor
Monthly price per user. The higher floor is your minimum price.
What does the SaaS Pricing Strategy Calculator calculate, and which formula does it use?
The SaaS Pricing Strategy Calculator sets a monthly price floor as the higher of two constraints: the margin floor — COGS per user ÷ (1 − target gross-margin percentage) — and the payback floor — COGS per user + CAC ÷ target payback months. The larger figure is the minimum monthly price; it is compared with a competitor's price, showing the gap and the gross margin you would keep at the competitor's price.
Last updated .
How to use it
- Enter monthly COGS per user, target gross margin, target CAC payback in months, CAC, and competitor monthly price. Margin targets around 75-85% are common for healthy SaaS, while sub-6-month payback targets are aggressive enough to force premium pricing.
- Read the minimum monthly price, the margin floor, the payback floor, the gap versus the competitor, and the margin you would keep at the competitor's price. The true floor is whichever is higher between the margin floor and the payback floor, because you must satisfy both operating margin and cash-recovery needs.
- If your recommended price is 20% or more above the market anchor, the problem is not just messaging. You likely have a CAC, COGS, or payback-expectation issue that needs fixing before you can compete comfortably on price.
- Use the output as a minimum viable monthly price, then test packaging, usage caps, or annual-plan discounts without crossing below that floor. If competitor price is below your floor, resist matching blindly and instead change cost structure or target a higher-value segment.
- Re-run whenever CAC, support cost, cloud spend, or payback targets move. Track price floor over time because creeping COGS or weakening acquisition efficiency can quietly make old price points unsustainable.
Questions people usually ask
What does the price floor mean?
It is the minimum monthly price that still supports the gross-margin and CAC payback goals you set.
Does the price floor tell me what customers will pay?
No. It tells you what your economics need. Market willingness to pay still needs separate customer research.
Why can the recommended floor feel higher than expected?
Because weak margin or slow payback forces price up. The calculator shows when the business model, not the headline price, is the real problem.
Should I use this for annual pricing too?
Yes. Start with the monthly floor, then back into annual offers or discounts without breaking the model.
Is this tool free and private to use?
Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
Is this professional advice?
No. Outputs are business planning estimates — not legal, tax, or accounting advice.
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Use it from code
The same calculation as a JavaScript module you can import. It runs where you import it, with no request, key or rate limit.
import { compute } from "https://aibizhub.io/engines/saas-pricing-strategy-calculator.js";Input and output contract, TypeScript types and the guide for agents.