# SaaS pricing calculator: tiers, free-to-paid conversion and MRR

> SaaS revenue from self-serve sign-ups = sign-ups × free-to-paid (or trial) conversion rate × blended price, minus churn. Blended price, or ARPA, is the average of your tier prices weighted by how many customers choose each tier. Freemium usually converts a few percent of users and free trials convert more, so small changes in conversion or tier mix move MRR as much as price changes do.

- Interactive version: https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator
- Type: free instant calculator
- Category: SaaS
- Last reviewed: 2026-10-05
- Publisher: Infikey Technologies (https://infikeytechnologies.com)

## Example result (default inputs)

| Input | Value |
| --- | --- |
| Currency | USD ($) |
| Model | Freemium (free plan) |
| New sign-ups per month | 2,000 |
| Sign-ups that become paying customers | 4% |
| Tier 1 price per month | 19 |
| Customers choosing tier 1 | 60% |
| Tier 2 price per month | 49 |
| Customers choosing tier 2 | 30% |
| Tier 3 price per month | 149 |
| Customers choosing tier 3 | 10% |
| Monthly churn of paying customers | 4% |
| Cost per free user per month | 0.1 |
| Forecast length | 12 months |

**MRR after 12 months: $31,758.** 2,000 sign-ups a month at 4% conversion and a blended price of $41.00 reach about $31,758 MRR after 12 months.

At this churn, MRR levels off around $82,000 unless sign-ups, conversion, price or retention improve.

| Metric | Value |
| --- | --- |
| Blended price (ARPA) | $41.00 |
| New paying customers per month | 80.0 |
| Paying customers after 12 months | 775 |
| Revenue over the period | $221,813 |
| Revenue per sign-up (first month) | $1.64 |
| Free accounts / their monthly cost at the end | 23,040 / $2,304 |
| MRR ceiling at this churn | $82,000 |

### MRR forecast

| Item | Value | Detail |
| --- | --- | --- |
| Month 1 | $3,280 |  |
| Month 2 | $6,429 |  |
| Month 3 | $9,452 |  |
| Month 4 | $12,354 |  |
| Month 5 | $15,139 |  |
| Month 6 | $17,814 |  |
| Month 7 | $20,381 |  |
| Month 8 | $22,846 |  |
| Month 9 | $25,212 |  |
| Month 10 | $27,484 |  |
| Month 11 | $29,664 |  |
| Month 12 (selected) | $31,758 |  |

**What conversion is worth**

| Conversion rate | MRR after 12 months | Revenue in period |
| --- | --- | --- |
| 2% | $15,879 | $110,906 |
| 4% | $31,758 | $221,813 |
| 6% | $47,637 | $332,719 |
| 8% | $63,516 | $443,626 |

- Free accounts accumulate month after month, so their cost keeps rising even when paid growth levels off. The forecast assumes none of them leave.

Open this result on the website: https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator?currency=USD&model=freemium&signups=2000&conversion=4&price_1=19&mix_1=60&price_2=49&mix_2=30&price_3=149&mix_3=10&churn=4&free_cost=0.1&months=12

## Use from a link or API

Add these query parameters to https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator (pre-filled page), https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator.md (this plain-text page) or https://infikeytechnologies.com/api/tools/saas-pricing-freemium-calculator (JSON).

| Parameter | Meaning | Accepted values |
| --- | --- | --- |
| `currency` | Currency | one of USD, INR, AED, GBP, EUR |
| `model` | Model | one of freemium, trial |
| `signups` | New sign-ups per month | number from 0 to 100000000, default 2000 |
| `conversion` | Sign-ups that become paying customers | number from 0 to 100 (%), default 4 |
| `price_1` | Tier 1 price per month | number from 0 to 1000000 (in the chosen currency), default 19 |
| `mix_1` | Customers choosing tier 1 | number from 0 to 100 (%), default 60 |
| `price_2` | Tier 2 price per month | number from 0 to 1000000 (in the chosen currency), default 49 |
| `mix_2` | Customers choosing tier 2 | number from 0 to 100 (%), default 30 |
| `price_3` | Tier 3 price per month | number from 0 to 1000000 (in the chosen currency), default 149 |
| `mix_3` | Customers choosing tier 3 | number from 0 to 100 (%), default 10 |
| `churn` | Monthly churn of paying customers | number from 0 to 100 (%), default 4 |
| `free_cost` | Cost per free user per month | number from 0 to 1000 (in the chosen currency), default 0.1 |
| `months` | Forecast length | number from 1 to 60 (months), default 12 |

- Freemium productivity app: https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator?currency=USD&model=freemium&signups=10000&conversion=2.5&price_1=8&mix_1=70&price_2=15&mix_2=25&price_3=30&mix_3=5&churn=5&free_cost=0.05&months=12
- B2B trial, card required: https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator?currency=USD&model=trial&signups=400&conversion=25&price_1=49&mix_1=50&price_2=99&mix_2=40&price_3=299&mix_3=10&churn=3&free_cost=0&months=24
- AI tool with usage costs: https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator?currency=USD&model=freemium&signups=5000&conversion=4&price_1=20&mix_1=75&price_2=60&mix_2=20&price_3=200&mix_3=5&churn=7&free_cost=0.6&months=12

## How it is calculated

- **Blended price (ARPA)**: Σ tier price × tier share
- **Paying customers next month**: customers × (1 − churn) + sign-ups × conversion
- **MRR**: paying customers × ARPA
- **MRR ceiling**: new paying customers per month ÷ churn × ARPA

## Freemium vs free trial

|  | Freemium | Free trial |
| --- | --- | --- |
| Typical conversion | Low single-digit percent of sign-ups | Higher, especially with a card required |
| Best for | Products that spread through use and sharing | Products whose value shows quickly |
| Cost | Ongoing cost of free users | Limited to the trial period |
| Risk | Free plan is “good enough” | Users do not reach value before it ends |

## Designing pricing tiers

- Price on a value metric customers understand: seats, usage, projects or locations.
- Make the middle tier the obvious choice for most customers.
- Put features larger customers need (SSO, audit logs, admin controls) in the top tier.
- Offer annual billing with a discount to reduce churn and improve cash flow.
- Review prices at least yearly as the product adds value.

## Improving free-to-paid conversion

1. Define the moment users first get value and guide them to it in onboarding.
2. Set free-plan limits at the point where active users naturally need more.
3. Show upgrade prompts in context, when a limit is reached.
4. Follow up with lifecycle emails based on what users have done.

## FAQ

### What is a good freemium conversion rate?

Freemium products often convert a few percent of sign-ups to paid; free trials usually convert more. Your own cohort data is the best benchmark.

### How do you calculate blended ARPA?

Multiply each tier’s price by the share of customers on that tier and add them up. 60% at $19, 30% at $49 and 10% at $149 is $40.00.

### Should I offer a free plan or a free trial?

A free plan suits products that grow through usage and sharing; a trial suits products where value shows quickly and you want a faster sales cycle.

### Why does MRR level off?

With steady sign-ups and churn, eventually as many customers leave each month as join. Growth then needs more sign-ups, better conversion, higher prices or lower churn.

## Get expert help

Send these results to an Infikey Technologies specialist from the form on https://infikeytechnologies.com/tools/saas-pricing-freemium-calculator#estimate or via https://infikeytechnologies.com/contact.

More free calculators: https://infikeytechnologies.com/tools.md

## Disclaimer

This calculator is provided free for general information and planning only. Results are estimates based on the inputs you enter and the assumptions described on this page, reference data such as published prices may change, and actual costs and outcomes will differ. Nothing on this page is financial, legal, tax, investment or other professional advice. Infikey Technologies Private Limited, Infikey Technologies LLC and their directors, employees and affiliates make no warranty, express or implied, about the accuracy, completeness or suitability of this tool or its results, and accept no liability for any loss or damage, direct or indirect, arising from its use or from reliance on its results. Verify all figures independently and seek professional advice before making any decision. Use of this tool is at your own risk.