# SaaS Price Increase Calculator

URL: https://www.paydude.io/resources/tools/saas-price-increase-calculator
Type: Free interactive calculator
Summary: Raising from $20 to $25? See the new MRR, the extra annual revenue, and exactly how many customers you could lose and still break even.

The revenue gain is the easy half. The number that decides whether you go through with it is the churn headroom: how many customers you could lose and still be no worse off than today.

## Summary

A 25% price rise lets you lose 20% of customers before revenue falls. Break-even churn is always lower than the percentage increase, and the gap widens as the rise gets bigger. Grandfathering existing customers removes almost all the risk and most of the near-term gain. Actual churn from a well-communicated increase is usually far below the headroom.

## The number that matters

Going from $20 to $25 with 1,000 customers adds $5,000 of MRR — $60,000 a year. Useful, but it does not tell you whether to do it.

The decisive figure is that you would still make $20,000 of MRR with only 800 customers at the new price. You can lose **200 customers** and be exactly where you started.

**Churn you can absorb at each increase**

| Price increase | Customers you can lose | Still break even at |
| --- | --- | --- |
| 10% | 9.1% | 909 of 1,000 |
| 25% | 20.0% | 800 of 1,000 |
| 50% | 33.3% | 667 of 1,000 |
| 100% | 50.0% | 500 of 1,000 |

> **Why the headroom is always smaller than the increase:** A 25% rise buys 20% headroom, not 25%. The increase is measured against the old price and the churn against the old customer count, so the two are computed on different bases.

## How to actually run one

1. **Decide who it applies to** — New customers only is nearly risk-free but slow. Existing customers too is where the revenue is, and where the churn risk lives.
2. **Give real notice** — Thirty to sixty days, in an email that says what is changing and when. Discovering it on a card statement is what actually causes cancellations.
3. **Explain what improved** — An increase attached to shipped work reads very differently from one attached to nothing.
4. **Offer to lock in the old rate annually** — Customers who prepay a year at the current price convert an objection into cash up front.
5. **Watch cancellations against your headroom** — You calculated how many you could afford to lose. Track against that number rather than reacting to the first few complaints.

In practice, well-run increases on a product people rely on tend to churn a low single-digit percentage — a fraction of the headroom above.

**Lower fees on every dollar of the increase** Published tiers that improve automatically as your volume grows. — [See pricing](https://www.paydude.io/pricing)

## Frequently asked questions

### How much notice should I give before raising prices?

Thirty to sixty days for monthly plans, and at least a full billing period before an annual renewal. The single biggest driver of cancellations is customers discovering the change on their card statement rather than in an email.

### Should I grandfather existing customers?

It depends on where your revenue is. Grandfathering removes nearly all churn risk but delays the gain until your customer base turns over. A middle path — existing customers keep the old price for six or twelve months — captures most of both.

### What churn should I actually expect?

For a product customers depend on, a well-communicated increase typically churns a low single-digit percentage — usually far below the headroom this calculator shows. If you are anywhere near the break-even number, the price was probably the only reason people stayed.

### Does raising prices affect my payment processing costs?

Favourably. Fees are a percentage plus a fixed amount, so a higher price spreads that fixed fee across more revenue. Going from $20 to $25 at 2.9% + 30¢ drops your effective rate from 4.4% to 4.1%.