SaaS Subscription Pricing Calculator
Compare monthly vs annual subscription pricing models.
See how discounts affect total revenue and customer lifetime value.
Revenue Comparison
SaaS subscription pricing compares monthly vs annual billing to optimize revenue and retention.
Annual Price = Monthly Price × 12 × (1 − Discount)
Monthly Revenue (monthly plan) = Subscribers × Monthly Price
Monthly Revenue (annual plan) = Subscribers × Annual Price / 12
Common annual discount ranges:
- Conservative: 10–15% off monthly price
- Standard: 15–20% off monthly price
- Aggressive: 25–40% off monthly price
Why offer annual plans:
- Reduced churn: Annual subscribers churn 2–3× less
- Cash flow: Upfront payment improves cash position
- Lower payment processing fees (12 charges vs 1)
Typical annual plan adoption:
- B2B SaaS: 40–60% choose annual
- B2C SaaS: 20–35% choose annual
Rule of thumb: The discount should be less than the cost savings from reduced churn and processing fees.