About the Subscription Pricing Calculator
Subscription pricing works backward from the margin you want. Enter your monthly cost to serve a customer and a target margin to get a recommended price, and see the annual value and profit per customer.
How it’s calculated
Price = cost per customer ÷ (1 − target margin%). Monthly profit = price − cost.
Example calculation
A $16 monthly cost per customer at a 60% target margin suggests a $40 price — $24 monthly profit, $480 a year.
Frequently asked questions
Does cost include support and infrastructure?
It should. Use the fully loaded cost to serve one customer — hosting, support, payment fees, tooling — so the price genuinely protects your margin.
Should I offer annual billing?
Often yes — an annual plan (frequently at a discount) improves cash flow and retention. Model both monthly and annual value before deciding the discount.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.