Freemium Paid Price Point Calculator

Enter your revenue goal, free users and conversion rate.

How it is calculated

The tool works backwards from the revenue you want to the price each paying user must pay. First it estimates paying users: paying = free users × conversion % ÷ 100. Then price = revenue target ÷ paying users. The conversion is a percentage, so enter 3 for 3%. Revenue target, free users and conversion must all be above zero. The price covers whatever period your target covers: a monthly target gives a monthly price per paying user, an annual one gives an annual price. The result assumes every paying user pays the same price and that conversion stays fixed whatever the price, which is optimistic, because a higher price usually lowers conversion. Paying users are shown rounded to whole users.

Worked example

You aim for 20,000 a month, you have 50,000 free users and 3% convert. Paying users = 50,000 × 3 ÷ 100 = 1,500 users. Required price = 20,000 ÷ 1,500 = $13.33 per paying user per month. If conversion were only 1.5%, paying users would drop to 750 and the price would have to double to $26.67 to reach the same target.

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Common mistakes

  • Entering conversion as a fraction, such as 0.03. The field expects percent, and 0.03 means 0.03%, which turns 50,000 users into 15 payers and an absurd price.
  • Mixing periods: a monthly target gives a monthly price. If you plan a yearly plan, use a yearly target.
  • Using total registered users or downloads instead of active free users. Only users who could realistically upgrade should be counted.
  • Assuming conversion stays the same at any price. A price near $13 may convert worse than the 3% you measured at a lower price, so treat the result as a check, not a forecast.
  • Ignoring churn, app-store fees and taxes. The price shown is the gross amount per paying user needed, before those deductions.

About this calculator

A freemium product converts only a fraction of its free users into paying customers, so hitting a monthly revenue goal means solving for the price each paying customer must be charged: price = revenue goal ÷ (free users × conversion rate). Nudge the conversion rate up or the free base down, and the required price per paying user climbs to compensate.

This back-of-envelope math is exactly what product managers, growth teams and SaaS or mobile-app founders run when setting or sanity-checking a paid tier’s price — comparing the price this formula implies against what users are actually willing to pay tells them whether they need to grow the free funnel, improve the conversion rate, or accept a lower revenue target instead of a price that will kill signups.

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