Pricing Model Comparator
Per-User or Flat Rate? See which model wins as you scale.
How This Tool Works
This calculator compares two common SaaS pricing strategies: Flat Rate (one price for everyone) vs. Per-User (seat-based pricing). It projects your monthly recurring revenue (MRR) for both models based on you customer usage patterns.
- Flat Rate: Simpler to sell, but you leave money on the table with large clients.
- Per User: Captures more value from large teams, but introduces friction (teams hesitate to add members).
How to Use
- Number of Customers: How many paying accounts (companies) you have.
- Avg Users: The average team size of those companies.
- Pricing Inputs: Enter your proposed Flat Rate vs Per-Seat Rate to see the difference.
The Scaling Effect
100 Customers. Average team size: 10 people.
• Option A (Flat): Charge $99/mo. Revenue =
$9,900.
• Option B (User): Charge $15/user. Revenue = 100 * 10 * 15 =
$15,000.
• Difference: +$5,100/mo (50% increase) just by
pricing
per seat.
Why This Matters
Pricing is the most powerful lever in your business. Changing your model can double your revenue overnight without acquiring a single extra customer. However, the wrong model can kill conversion rates.
Limitations & Disclaimer
• This model assumes conversion rates remain the same for both prices (which is rarely
true;
higher prices usually mean lower conversion).
• It calculates revenue based on averages, ignoring the distribution of small vs large
teams.
FAQs
It depends. Flat Rate is better for rapid adoption and simplicity (SMBs love it). Per-User is better for maximizing revenue from large enterprises.
When your product becomes a 'team workflow' tool where value increases with more people. If your tool is single-player (like a logo maker), Flat Rate is better.
Tiered pricing is the most common hybrid. You charge a flat rate for a package (e.g., $99) that includes a set number of users (e.g., up to 5 users), then extra for each additional user.