SaaS Pricing Strategy Model

Modeling the impact of three pricing strategies over the next 24 months.

Current MRR

Model Parameters

New Customer Growth (Monthly)

Monthly Growth: 2.0%

Strategy A: Starter Churn Delta (pp)

Churn Delta: 0.8pp

Strategy A: Pro Churn Delta (pp)

Churn Delta: 0.4pp

Strategy B: Add-on Adoption Rate

Adoption Rate: 35%

Strategy C: Forced Migration Churn

Churn Rate: 30%

Metric	Baseline	Strategy A (Price +25%)	Strategy B (Usage Add-on)	Strategy C (Repackage)
Ending ARR	$0	$0	$0	$0
Total Churned MRR	$0	$0	$0	$0
Blended ARPU	$0	$0	$0	$0

Adjust the sliders to see which strategy performs best.

Strategy A: Higher revenue per customer but risks higher churn and lower conversion.
Strategy B: Captures more value from power users without increasing churn, but requires product changes.
Strategy C: Simplifies the offering and increases ARPU, but risks short-term churn from forced migration.