Pricing Tier Optimizer

Guide

This page is a calculator first, but it's also a quick reference you can share internally. Start with the presets, then adjust inputs and copy the share link. Example defaults for this tool are shown below.

Example (defaults)

Example inputs: Target ARPA (monthly) = 120, Basic plan share (%) = 60, Pro plan share (%) = 30

Inputs explained

Outputs explained

How it works

• We model ARPA as the weighted average of tier prices.
• Basic price is solved so the weighted average matches your target ARPA.
• Pro and Enterprise prices are set as multipliers of the basic tier.

Modeling tips

• Use an ARPA target that aligns with revenue goals and margin constraints.
• If plan shares do not sum to 100, we normalize them automatically.
• Set multipliers based on value delivered or competitive benchmarks.
• Run multiple mixes to stress-test how pricing shifts with segment mix.
• Validate the final prices against willingness-to-pay research.

Validation checks

• Implied ARPA should match your target ARPA.
• If all plan shares are 0, prices will be 0; set a realistic mix.
• If multipliers are 1, all tiers will be priced the same.

Common mistakes

• Using a target ARPA without validating CAC or payback impact.
• Setting enterprise multipliers too low for high-touch costs.
• Ignoring how mix shifts can change ARPA over time.
• Comparing prices to competitors without aligning on value.

Interpretation

• Use the basic tier price as your public anchor.
• If prices look too high, reduce the target ARPA or adjust the mix.
• If prices look too low, increase multipliers or shift mix assumptions.

Use cases

Mini walkthroughs

Scenarios

Edge cases

• If multipliers are 0, all prices will be 0; use realistic multipliers.
• If target ARPA is 0, all prices will be 0.
• Extremely high multipliers can push enterprise pricing beyond market norms.

FAQ