What this calculator is doing (in plain English)

A tiered pricing plan is just a structured way to answer two questions: (1) How much money do you want to make? and (2) What mix of customers will pay which price? This builder turns those assumptions into a quick revenue forecast.

You set a percentage mix for Basic, Pro, and Team. In the real world, mixes rarely sum to exactly 100% while you’re experimenting. To keep the math stable, the builder normalizes the three percentages so they add to 100%.

• If your mix is 60% / 30% / 10%, it already sums to 100% — nothing changes.
• If your mix is 70% / 40% / 10% (=120%), the tool scales each down proportionally.
• If your mix is 40% / 0% / 0%, the tool treats it as 100% Basic (and warns you).

Customers in a tier = Total paying customers × Normalized tier percentage. We round to whole customers (because you can’t have 0.3 of a customer).

The output is shown as MRR (monthly recurring revenue) and ARR (annual recurring revenue). If you choose monthly subscriptions, the monthly price is the MRR contribution. If you choose annual prepaid, the tool applies your annual discount and converts the annual payment into a “monthly equivalent” so the forecast is comparable.

• Monthly model: Tier MRR = Customers × Monthly price
• Annual model: Tier MRR ≈ Customers × (Monthly price × (1 − annualDiscount%))
• ARR is then simply MRR × 12.

Many businesses earn extra revenue from add‑ons (usage, seats, premium support, templates, SMS credits, etc.). This builder adds: Add‑on MRR = Total customers × Add‑on revenue per customer. That keeps the model simple and helps you see how “small extras” can move the needle at scale.

Gap to target = Target MRR − Forecast MRR. If the gap is positive, you’re below target; if it’s negative, you’re above target. The meter shows how close you are as a percentage.

• It forces clarity: if you want $10k MRR, you can see whether you need more customers or higher ARPU.
• It reveals leverage: sometimes a small Team tier or add‑on makes revenue much easier.
• It’s shareable: you can screenshot or copy the summary and discuss assumptions, not feelings.

Three quick scenarios you can copy

You have 200 customers, Basic $19 (60%), Pro $49 (30%), Team $149 (10%), and $5 add‑ons. Your blended ARPU is roughly: 0.60×19 + 0.30×49 + 0.10×149 + 5 ≈ $45.6. Multiply by 200 customers and you’re near $9.1k MRR.

Same prices, but you improve onboarding and shift the mix to 45% / 40% / 15%. Now the weighted tier revenue is higher even with the same customer count. In many products, improving the “Pro story” (who it’s for + why it’s worth it) is easier than acquiring 50% more customers.

You offer annual with a 15% discount. If a tier’s monthly price is $49, the “monthly equivalent” becomes $49 × (1 − 0.15) ≈ $41.65. That can reduce MRR, but it increases cash collected up front and reduces churn in practice. Use the annual setting to understand the trade-off: MRR optics vs. cash and retention.

In real pricing, changing price changes demand. This builder doesn’t model elasticity because it varies by market. Instead, use it as a planning baseline: it shows what your assumptions imply. Then validate via experiments (pricing page tests, sales calls, cohorts).

A fast workflow for building a viral, shareable pricing draft

If you want this calculator to be useful (and shareable), treat it like a short “pricing challenge”: the user can play with sliders and instantly see consequences. The best viral moment is when someone says: “Wait… we only need 30 Team customers to hit our goal?”

• Start with customers: choose a realistic near-term number (or current paying customers).
• Set a target: a revenue goal creates context (e.g., $10k MRR, $50k MRR).
• Pick Basic: the easiest tier to price; it anchors everything.
• Ladder up: set Pro and Team so each jump feels meaningfully better.
• Adjust mix: experiment with what happens if you upgrade 5–10% more customers.
• Use add‑ons: test whether small extra revenue per customer closes the gap.
• Save scenarios: store “Conservative”, “Realistic”, “Aggressive” drafts locally.

• Tiers too close: if Pro and Team are similar, upgrades don’t happen.
• Pro too expensive: if Pro is 4× Basic, users either stay Basic or churn.
• No revenue engine: if 90% of customers are Basic and Basic is low, you must acquire endlessly.
• Ignoring add-ons: many profitable products win with add-ons + a strong Pro tier.

• If your gap is huge, you usually need to change customers, mix, or Team price (in that order).
• Adding $2–$5 in add‑on revenue can be equivalent to dozens of new customers in small businesses.
• Don’t chase perfect numbers. Use this to find a “reasonable corridor” and then test.

Frequently Asked Questions

• Is a 3‑tier model always best?

  It’s the simplest structure that covers most products. One tier is too rigid, and five tiers can confuse buyers. If you need more tiers later (e.g., Enterprise), start with 3 and expand after you have data.

• What’s a “good” customer mix?

  There’s no universal answer. Many consumer products are Basic-heavy, while B2B products often have a meaningful Team/Business share. Use your expected buyer types as the guide. In general, if Pro is your best value, you want a healthy Pro share.

• Should I default to annual prepaid?

  Annual prepaid can reduce churn and improve cash flow, but it may reduce “MRR” optics depending on discount. A common approach is: show monthly by default, but offer annual as a toggle with a clear discount.

• Does this include churn or growth?

  Not directly. This is a snapshot model. If you want churn and growth, pair this with a cohort model: new customers per month, churn %, expansion %, and net revenue retention.

• How do I choose the “right” prices?

  Use customer research and willingness-to-pay data if you have it, then validate with experiments. A practical start is to price for outcomes: what’s the value of the result you help the customer achieve?

• Can I copy this result into my pitch deck?

  Yes — it’s designed for that. Build a scenario, copy the summary, and label it as “assumption-based forecast.” Then show how you’ll validate the assumptions.