SaaS Pricing Calculator
Work out the lowest price your target margin allows, and how much room the market leaves you above it.
What this calculates
This finds the price at which an account hits your target gross margin, then compares that floor with the median price of the alternatives your buyers consider. The indicated price is the higher of your margin floor and just under the market median. It is a floor and a ceiling, not a willingness-to-pay study.
At typical inputs for a B2B SaaS company spending $95 a month to serve an account and targeting an 80% gross margin against a $520 market median, this calculator puts the margin floor at $475 a month and the indicated price at $494.
Your numbers
Your costs
The market
Results update as you type. Nothing is sent anywhere, the calculation runs in your browser.
Indicated price per account
Live$494 /mo
$41 per seat across 12 seats
- Margin floor price
- $475 /mo
- Margin at the market median
- 82%
- Headroom to the median
- $26 /mo
Watch
The market median sits just above your margin floor, which leaves almost nothing for discounting. Every deal you close below list is eating the margin you set out to protect. Either the cost to serve has to come down or the packaging has to change.
Pressure-test this against your real numbers
Thirty minutes on packaging, because the tier structure moves this more than the number does.
No email required to see your result. The field above exists only if you want a copy.
How is this calculated?
Gross margin is price minus cost to serve, divided by price. Rearranged, the price that produces a given margin is the cost to serve divided by one minus that margin. That is the floor. The indicated price is the higher of the floor and 95% of the market median, on the principle that you should never price under your own cost structure and rarely lead a market by default.
Formula
Margin floor = cost to serve ÷ (1 − target gross margin) Indicated price = max(margin floor, competitor median × 0.95) Margin at the market median = 1 − (cost to serve ÷ competitor median) Per seat divides the indicated price by the seats in a typical account.
- Cost to serve is the variable cost of one account for one month: hosting, third-party API calls, and the support time that scales with account count. Salaries that do not scale with accounts belong in operating expense, not here.
- The competitor median is the median of the options your buyers actually shortlist, which is usually three or four names rather than the whole category.
- The indicated price is a monthly figure for a whole account. Annual prepayment discounts sit on top of it.
- Nothing here measures willingness to pay. Two products at the same cost and the same competitive set can support very different prices, and only a conversation with buyers tells you which one you are.
When this number misleads
A margin floor computed from today’s cost to serve assumes today’s cost to serve is normal. If a handful of accounts drive most of your support load or most of your infrastructure spend, the average is fiction and the floor is too high for the accounts that behave and too low for the ones that do not. That is a packaging problem, and it shows up as a pricing problem for about a year before anyone names it.
Questions founders ask about this
Why price just under the market median rather than at it?
Because at the median you are asking a buyer to choose you on features alone, and a small visible gap gives the champion an argument to use internally. It is not a discounting strategy. It is five percent of room to make a decision easy.
My cost to serve is tiny. Does that mean I should charge very little?
No, and that is the limit of this tool. A low cost to serve sets a low floor, nothing more. The price should follow the value the account gets, which is why the market median is in here at all. Cost tells you where you cannot go, not where you should be.
Should I price per seat or per account?
Whichever grows with the value the customer receives. Per seat works when more users means more value. It works badly when your product replaces work rather than adding users, because then the buyer is rewarded for keeping the team small.
Do you store what I enter?
No. The calculation runs in your browser and nothing is transmitted. Your last inputs are saved in your own browser so the page remembers them when you return. If you use the email field, only the result summary and your address are sent.
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