A 10 per cent rise survives anything under 9.09 per cent of customers leaving. Well-handled rises run nowhere near that
Price Rise Impact Calculator
What a price rise does to MRR at the churn you fear, the breakeven churn it can absorb, and the sensitivity table to run before the renewal cycle.
Price Rise Impact Calculator
What a price change does to MRR once the churn it causes is counted, and the churn a rise can survive before it stops paying.
The arithmetic nobody runs before arguing
A rise of r survives churn of up to r over one plus r before MRR falls: 9.09 per cent for a 10 per cent rise. Most SaaS price rises cause far less, which is why the fear is usually more expensive than the churn.
Grandfathering the existing base delays the benefit but not the anger; migrating everyone with notice collects it. The honest middle: migrate with a long notice period and an annual-billing escape hatch.
The demo: 10 per cent on 200 accounts at £200, losing 3 per cent of them, is £42,680 of MRR against £40,000, a 6.7 per cent gain that compounds through every later month.
Take the workbook
The rise in Excel with a churn sensitivity row, so you can see how wrong the churn guess can be before the rise stops paying.
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