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Free Calculator

Pricing Power Calculator

Value-based pricing in three numbers: customer value × your share = ceiling. Anchored against competitor price for a defensible recommended range.
Recommended annual price
$13K
Conservative
$11K
Aspirational
$16K
Value ceiling
$13K
How the price was set
  • • Value ceiling: $13K — the max price that still leaves the customer better off given the value you deliver.
  • • Competitor anchor: $12K — what the alternative costs.
  • • Recommended range: set just below the value ceiling and slightly below or above the competitor depending on differentiation.
Use this as a starting pointThe right price is whatever the market will pay. Test by quoting the recommended price for your next 5 deals. If close rate stays the same, raise. If it drops sharply, you're at the ceiling.

What is the pricing power calculator?

Value-based pricing sets your price as a share of the value you deliver to the customer — not as a cost-plus calculation, not as a competitor match.

The math: Customer's annual value × your share = your price ceiling. Most SaaS captures 10-30% of value delivered.

Why this matters for founders & operators

Cost-plus pricing makes sense for hardware. SaaS has near-zero variable cost, so cost-plus dramatically under-prices most products.

Value-based pricing forces a different question: "how much does this customer benefit?". Answer that, take a fair share, and you'll usually charge 2-5x what cost-plus would suggest.

How to use this calculator

  1. 1
    Quantify the value you deliver

    Time saved × hourly rate. Revenue gained. Cost avoided. Risk reduction (in expected dollar terms).

  2. 2
    Pick a fair share

    20-30% is standard for B2B SaaS. 10% is conservative; 50%+ is aggressive and hard to defend.

  3. 3
    Anchor to competitor pricing

    Customers compare prices. The recommendation factors competitor prices to keep your number defensible.

  4. 4
    Test on 5 deals

    Quote the recommended price. If close rate stays the same, raise. If it drops sharply, you've hit the market ceiling.

FAQ

How do I quantify value if it's qualitative?+
Convert to dollars. 'Better customer experience' → 'reduces churn by X% → saves Y MRR'. If you can't make the conversion, the value is probably weaker than you think.
What's a typical value share for SaaS?+
20-30% for vertical SaaS. 10-20% for horizontal SaaS. Higher (30-40%) for products with strong moats.
How does this differ from competitor pricing?+
Competitor pricing answers 'what's normal?' Value-based answers 'what's possible?' Use both — value sets the ceiling, competitor anchors the floor.
What if my value is much higher than competitor pricing?+
Price below value ceiling but well above competitors. Investors and customers will both ask 'why so expensive?' — the answer is the value calculation. Make it visible.