Model the revenue impact of a price increase — including the customers who'll walk.
Owners avoid raising prices because they imagine losing every customer. The maths usually says you can afford to lose more than you'd think. The Price Increase Planner shows you exactly: given an increase and an expected churn rate, does your gross profit go up, stay flat, or fall?
Most price increases in SaaS, services, and trade businesses are net positive — even with the lost customers — because the surviving customers contribute more. This calculator lets you sanity-check that before you send the letter.
New revenue = current revenue × (1 + price increase) × (1 − churn). New gross profit = new revenue − cost of sales × (1 − churn). The break-even churn is the level at which gross profit stays exactly equal to today's — anything above that and you've lost ground, anything below and you're up.
Enter your current monthly revenue and gross margin
Enter the price increase percentage you're considering
Enter your honest expectation for customer churn caused by the rise
Read whether the move is net positive AND the break-even churn rate (the level at which you'd be no better off)
Decide if the worst-case is acceptable
For SaaS and services with annual contracts, real churn from a single-digit price rise is usually under 5%. For retail and price-sensitive markets it can be higher. The honest answer is: model the break-even churn first, then ask 'is my real churn likely to be below that?'
30–90 days of notice is the standard for B2B and services. A small one-sentence reason ('our costs have risen 10% over the last 18 months') is enough. Long apologetic emails make customers more anxious, not less.
Sometimes. It's good for retention but builds a slow-burn problem: your most loyal customers pay the least, and over years the rate gap becomes huge. A common compromise: grandfather for 6–12 months, then move everyone to the new price.
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