Free Tool
Pricing Sensitivity Calculator
What happens to MRR, gross profit, and unit economics if you change your price? Model it in seconds, with price elasticity, the profit-maximizing price, and how many customers you could afford to lose.
Frequently Asked Questions
- What is price elasticity and what number should I use?
- Price elasticity here is how many percent of customers you lose for each 1% price increase. A value of 1.0 means a 10% price rise loses about 10% of customers (unit elastic). Sticky B2B products with switching costs are often 0.3-0.7 (inelastic); commodity or easily-substituted products can be 1.5+ (elastic). If unsure, start at 1.0 and test a range.
- How do you find the profit-maximizing price?
- The tool applies your elasticity to each price change, recomputes customers, revenue, and gross profit (variable cost per customer held fixed), and highlights the price that produces the highest gross profit. Because cost per customer is roughly fixed, the profit-maximizing price is usually higher than the revenue-maximizing price.
- Why does gross margin improve when I raise prices?
- The calculator derives your variable cost per customer from your current margin and holds it fixed in dollars. When price rises, that fixed cost is a smaller share of the new price, so gross margin percentage widens. This is realistic for software and most subscription businesses where cost to serve does not scale with price.
- What is the break-even loss figure?
- It is the percentage of customers you could lose at the new, higher price and still keep the same total MRR you have today. A large break-even cushion means a price increase is low-risk even if churn is worse than your elasticity assumption.
- Is a higher price always better?
- No. Past a point, elasticity-driven customer loss outweighs the higher price and both revenue and profit fall. Raising prices can also slow new-customer acquisition (not modeled here) and strain retention. Use the optimal-price row as a starting hypothesis, then test with a real cohort.
Email me this pricing analysis
How your price change moves MRR, gross profit, and payback, with the elasticity assumptions stated plainly.
The tool stays free and open either way. No spam, unsubscribe anytime.
Keep learning
What Belongs in SaaS COGS and How to Compute Gross Margin
A practical guide to defining SaaS cost of revenue and calculating gross margin correctly, including AI inference costs and benchmarks.
InsightHow Much Does a 409A Valuation Cost? (2026 Guide)
Most venture-backed startups pay $2,000 to $5,000 for a 409A valuation, but the range runs from $1,000 bundled with a cap table platform to $10,000 and up at a Big Four firm. Here is what drives the price, what you actually get, and when paying more is worth it.
GlossaryTransfer Pricing
IRS rule requiring related-party transactions to be priced at arm's length.
GuideAdaptive Billing: Flexing Across Subscription, Usage, and Hybrid as You Scale
How to design a billing system that flexes across subscription, usage, and hybrid models as pricing and the company evolve.
InsightBest Accounting Software for Startups (2026)
QuickBooks Online, Xero, Zoho Books, Puzzle, Wave, and FreshBooks ranked for venture-backed startups in 2026: accrual support, integrations, accountant access, pricing, and which one to pick at each stage.
GlossaryUsage-Based Pricing (Metered Billing)
Charging customers based on measured consumption (API calls, seats, transactions) rather than a flat subscription.
