Simulate a three-tier SaaS pricing model (Basic, Pro, Enterprise) to estimate MRR, ARR, per-tier gross profit, and overall ARPU. Model customer growth scenarios and understand revenue distribution across pricing tiers. Educational use only, not financial or pricing advice.
Configure your Basic, Pro, and Enterprise tiers
Enter pricing details for your Basic, Pro, and Enterprise tiers. The simulator will calculate MRR, ARR, gross profit, and show how customer growth affects your revenue metrics.
Multi-tier pricing is a SaaS pricing strategy where companies offer multiple subscription levels (typically Basic, Pro, and Enterprise) at different price points. Each tier provides increasing features, limits, or support levels to serve different customer segments.
MRR (Monthly Recurring Revenue)
Predictable monthly revenue from all active subscriptions. For annual plans, MRR = Annual Price ÷ 12.
ARR (Annual Recurring Revenue)
Total annualized revenue. ARR = MRR × 12. Used for year-over-year growth tracking.
ARPU (Average Revenue Per User)
Average monthly revenue per customer. ARPU = Total MRR ÷ Total Customers.
Per Tier MRR =
(Monthly Price × Monthly Customers) +
(Annual Price ÷ 12 × Annual Customers)
Total MRR = Sum of all tier MRRs
This approach normalizes annual subscriptions to monthly equivalents for consistent revenue tracking.
Gross profit represents revenue minus the direct costs of delivering your service (hosting, support, third-party APIs). Different tiers may have different gross margins based on support levels and infrastructure costs.
Monthly Gross Profit =
MRR × (Gross Margin % ÷ 100)
Understand the difference between markup and margin and calculate selling prices based on cost and target margins.
Project your cash runway based on current cash and monthly burn rate.
Compare baseline versus promotion revenue and profit to understand discount impacts.
Calculate your break-even point in units and revenue to understand profitability.
Evaluate investments using discounted cash flow analysis and net present value.
Understanding how different pricing tiers contribute to your MRR helps you make informed decisions about pricing, feature allocation, and customer acquisition strategy.
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