b2KIT

Subscription Pricing Calculator

Design subscription tiers with feature matrices, annual vs monthly pricing, and revenue projection across plan mix scenarios.

Tested tool guide Tested browser tools Checked August 16, 2026

What Subscription Pricing Calculator does, with a checked example

This tool turns the pricing decisions you are juggling - what each tier costs per month, which features each tier unlocks, how much the annual plan is discounted, how many subscribers you expect per tier - into one comparable view: an annual price and effective monthly rate per plan, a feature matrix to scan for gaps, and projected revenue for the subscriber mix you enter. The surprise is the arithmetic: the annual discount is real money out. At 20% off, each annual subscriber pays 80% of a year's monthly bills, so projected annual-billing revenue is lower per subscriber - the tool shows that tradeoff explicitly.

Worked example

A concrete input and expected output from the current implementation.

Input

Tiers: Basic $12/mo, Pro $29/mo, Team $79/mo. Annual discount: 20%. Subscriber counts: 200 Basic, 60 Pro, 10 Team.

Expected output

Annual price per tier: Basic $115.20/yr (effective $9.60/mo), Pro $278.40/yr ($23.20/mo), Team $758.40/yr ($63.20/mo). Monthly revenue: $4,930. Full-year revenue if all 270 subscribers stay monthly: $59,160; if all take annual billing: $47,328 - 80% of the monthly figure, exactly the discount.

Each annual price is 12 monthly bills minus 20%, and the effective monthly rate is that price divided by 12. Revenue is price times subscriber count summed across tiers, so the two billing modes differ by exactly the discount: 200 x 12 + 60 x 29 + 10 x 79 = $4,930 monthly, and 200 x $115.20 + 60 x $278.40 + 10 x $758.40 = $47,328 a year.

How the result is produced

1

Feature matrix and tier entry

You enter each tier's name, monthly price, and feature set - features marked available or not, or limited values such as '5 projects' - and the tool assembles the matrix so you can scan for gaps: a lower tier offering something a higher tier omits, or two tiers that are indistinguishable. Prices and features sit in the same table, so the comparison you read is the one you entered.

2

Annual conversion and scenario revenue

Each plan's annual price is 12 times its monthly price, minus the discount you set, with the effective monthly rate that implies (annual price divided by 12) shown alongside. You then enter subscriber counts per tier - each set of counts is one scenario - and the tool totals price times count across tiers, reporting monthly and full-year revenue under both billing modes side by side.

Good uses

  • Setting first prices for a new product: see what an annual plan actually nets per subscriber before you commit.
  • Deciding whether to push annual billing: project the same subscriber counts under monthly and annual mixes and see exactly what the discount costs per subscriber.
  • Auditing an existing feature matrix before a relaunch: lay out features per tier and catch gaps, duplicate tiers, or a premium tier missing something the free tier has.

Limits and checks

  • The revenue projection is a snapshot, not a forecast: it multiplies the subscriber counts you enter by list prices. Churn, upgrades, downgrades, and new signups are not modeled, so a year-ahead figure holds only if those counts hold.
  • Annual-billing revenue reads lower than monthly for identical counts - that is the discount, not a bug. The tool quantifies the tradeoff but cannot tell you whether annual billing actually cuts churn, which is the only thing that can justify it.
  • Inputs are sticker prices. Taxes, payment fees, refunds, and mid-year price changes are not included, so compare like with like: the effective monthly rate of an annual plan (annual price divided by 12) is not the same number as a list monthly price.

Common questions

Can this tool tell me what to charge?

No. It shows the arithmetic of the prices you enter - what an annual plan implies per month and what a subscriber mix is worth. Whether customers will actually pay those prices, or respond to the discount, is a demand question that comes from competitor research and price testing, not from the calculator.

Why is my projected annual-billing revenue lower than monthly?

Because the discount is a real price cut: at 20% off, an annual subscriber pays 80% of 12 monthly bills, so identical subscriber counts yield 20% less revenue per subscriber. The offsetting benefits - retention and cash arriving upfront - are real but outside the arithmetic, so the tool shows both totals and lets you judge.

References and verification

The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.

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