Founders under-price because they fear churn. This shows the surprising math: how many customers you can lose on a price rise and still make more money.
What this tool does
You enter your current price, the proposed increase, and your margin; it calculates the break-even churn. The share of customers you can lose and still come out even or ahead.
Who it's for
Founders considering a price rise who want the math before the nerves.
How to use it. Step by step
- Enter current price and margin. Your starting point.
- Enter the proposed rise. The new price you're considering.
- Read break-even churn. The share of customers you can lose and still win.
- Compare to expected churn. If real churn is below break-even, raise the price.
How to read your result
The higher your margin, the more customers you can afford to lose. Often far more than founders fear. If expected churn is below the break-even churn, the increase is a clear win.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
10% rise, healthy margin
Inputs: $100 → $110, 70% margin.
What the tool shows: You can lose a meaningful share of customers and still make more.
What to do: Raise it. Expected churn is almost always below break-even.
High-margin SaaS
Inputs: Software with ~85% margin.
What the tool shows: Break-even churn is very high. Pricing power is large.
What to do: Raise confidently; grandfather key accounts if needed.
Low-margin product
Inputs: Thin margin business.
What the tool shows: Break-even churn is lower. Less room, but often still positive.
What to do: Raise carefully and watch retention.
Common questions
Won't I lose customers? Some. But the math usually still wins, which is the point.
Why does margin matter? Higher margin means each retained customer covers more lost ones.
Should I grandfather existing customers? Often yes for goodwill. Model both.