Ecommerce
Subscription Pricing Calculator
Enter monthly cost to serve, target margin and optional seats or fixed overhead.
What should a subscription cost?
Subscription pricing usually starts from the monthly cost to serve a customer (hosting, support, payment fees, content, COGS) and the margin you need after that cost. Suggested price ≈ cost ÷ (1 − target margin). Multiply by twelve for a simple annual headline, and if you enter fixed monthly overhead the tool estimates how many paying subscribers cover that base (overhead ÷ contribution per subscriber). Seat-based products can scale the cost field by seats. Cross-check affordability narratives with the monthly to annual converter and existing bill modelling in the subscription cost tool.
Worked example
£8 cost to serve at 60% margin → price ≈ £20/month (£240/year). £500 overhead with £12 contribution per sub → break-even at ceil(500/12) ≈ 42 subscribers.
Limits and assumptions
Ignores churn, trials, annual prepay discounts and usage tiers. Margin is on price, not markup on cost.
Frequently asked questions
What is COGS?
Cost of goods sold — what it costs you to deliver one subscriber’s month of service (hosting, support time, payment fees, materials, and so on). “Cost to serve” is the same idea here.
Margin or markup?
This tool uses margin: profit as a share of price. Markup would be profit as a share of cost instead.
What belongs in cost to serve?
Variable costs that scale with each subscriber — not one-off setup you already sunk.
Why show break-even subscribers?
Fixed overhead must be covered before the subscription is viable; headcount of paying users is the blunt test.