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See the revenue gain — and how many customers you could afford to lose.
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.
Assumes the increase applies to every customer. If you grandfather existing accounts, enter only the customers who will actually move.
You could lose up to 200 customers — 20.0% of your base — and still make the same revenue as you do today at $20.00.
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.
| 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 |
New customers only is nearly risk-free but slow. Existing customers too is where the revenue is, and where the churn risk lives.
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.
An increase attached to shipped work reads very differently from one attached to nothing.
Customers who prepay a year at the current price convert an objection into cash up front.
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.
GOOD QUESTIONS
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.
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.
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.
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%.