The method
How it is worked out
- ARPA
- Average revenue per account
Compare per-seat, usage-based and tiered pricing on your own customer base and see which earns more revenue. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Compare per-seat, usage-based and tiered pricing on your actual customer base and see which structure earns the most monthly revenue before you commit to a pricing page.
Per-seat revenue is customers times seats times seat price. Usage revenue applies the unit price to average consumption with a monthly minimum. Tiered revenue distributes customers across three plans by the shares entered. The models are ranked by monthly revenue.
400 customers with 8 seats at £25 give £80,000. Usage of 12,000 units at £1.50 per thousand with a £49 floor gives £19,600. Tiers at £99, £249 and £599 with 50%, 35% and 15% of customers give £90,600: tiers win here.
Put it to work
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
SaaS founders choosing or changing a pricing model, product managers running pricing reviews and revenue leaders forecasting a model migration.
Mistakes worth avoiding
Questions
Compare per-seat, usage-based and tiered pricing on your own customer base and see which earns more revenue.
Per-seat revenue is customers times seats times seat price. Usage revenue applies the unit price to average consumption with a monthly minimum. Tiered revenue distributes customers across three plans by the shares entered. The models are ranked by monthly revenue.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Choosing the model that earns most today without considering how each affects churn. Ignoring how usage pricing makes revenue swing with customer activity. Changing model without grandfathering existing customers.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.