SaaS Margin Calculator
Don't let payment processor fees destroy your margins. Model your pricing strategy, calculate Stripe fees, and find out exactly how many users you need.
UNIT ECONOMICS (PER USER)
MRR GOAL: $10,000.00
To hit your MRR goal of $10,000.00, you need exactly 1,063 paying users.
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Pricing is the most important lever in your startup. Undercharging will kill your business through processing fees, while overcharging will kill your conversion rate. Here is how to find the sweet spot.
Why do micro-subscriptions fail?
Many indie founders try to price their first SaaS at $2 or $3 per month to attract more users. However, payment processors like Stripe charge a fixed fee (usually 30¢) plus a percentage (2.9%) on every transaction.
On a $2 subscription, Stripe takes nearly 18% of your revenue immediately. This makes micro-subscriptions highly unprofitable for bootstrapped startups. You have to support a customer for a whole month for just $1.64 in profit.
What is a good SaaS margin?
After payment processing fees, a healthy SaaS business should aim for an effective margin of 85% to 92% on gross transaction volume.
If your effective margin after Stripe fees drops below 70%, your subscription price is likely too low. You should strongly consider raising your prices or switching exclusively to annual billing to minimize the impact of fixed transaction fees.
How to use this pricing calculator
Model your SaaS economics in three simple steps:
- Set your Monthly Subscription Price: Input the amount you plan to charge users every month.
- Set your Monthly MRR Goal: Input your target revenue (e.g., $10,000 for standard ramen profitability).
- Review the output: The tool will instantly calculate the Stripe fees per transaction, your true profit margin, and exactly how many paying customers you need to acquire to hit your goal.
Should I offer an annual plan?
Yes, absolutely. Annual plans are the lifeblood of bootstrapped startups.
Not only do they provide you with an immediate influx of cash to reinvest into marketing, but they also drastically reduce the amount of revenue you lose to Stripe's 30¢ fixed transaction fee, pushing your true margin closer to 96%.
Pricing modeled? Start acquiring users.
You've run the numbers. Now it's time to test your pricing model in the real world. Launch on WonderLaunch for free.
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