Five-spoke pricing health compassAll spokes are normalized to the targets entered above
Business
Subscription Pricing Benchmark Calculator
Diagnose subscription pricing health across five independent dimensions rather than relying on one revenue multiple. The calculator reconciles realized price, retention, contribution economics, CAC payback, and gross margin with entered targets and identifies the limiting pricing dimension.
Pricing health score-
Price realization-
Net revenue retention-
Contribution LTV/CAC-
CAC payback-
Contribution per account-
Limiting dimension-
Benchmark posture-
Composite target attainment
Pricing health compass
Expose the limiting dimension behind an apparently healthy subscription price
Actual profileTarget ring
| Dimension | Actual | Target | Attainment | Status | Pricing implication |
|---|
Benchmark setup
Measure realized economics—not the list price printed on the website
- Enter list price and actual average revenue per account from the same period.
- Use logo churn and expansion rates measured on a monthly basis.
- Subtract direct support cost after applying gross margin.
- Replace target values with segment and maturity-stage policy.
- Investigate the limiting compass spoke before relying on the average score.
Five independent pricing tests
Discounting, retention, acquisition, recovery speed, and delivery cost can fail separately
Detailed calculation process
Normalize each pricing result against its directional target
Price realization = Realized ARPA ÷ List priceNRR = 1 − Monthly logo churn + Monthly expansionMonthly contribution = ARPA × Gross margin − Support costContribution LTV = Monthly contribution ÷ Monthly logo churnLTV/CAC = Contribution LTV ÷ CACCAC payback = CAC ÷ Monthly contributionHigher is favorable for realization, NRR, LTV/CAC, and gross margin; lower is favorable for payback. The score caps each target at full attainment so one exceptional metric cannot hide a failing one.
Benchmark examples
Use the compass to isolate different corrective actions
Discount leakage: strong retention with 82% price realization points to packaging, discount governance, or contract enforcement rather than a churn problem.
Acquisition strain: healthy margin and NRR with long payback suggests CAC or onboarding economics must change before raising acquisition spend.
Pricing health reconciliation
Rebuild every default benchmark from the same recurring contribution
Price realization = $52 / $59 = 88.1%NRR = 1 - 2.8% + 4.0% = 101.2%Monthly contribution = $52 x 78% - $6 = $34.56LTV/CAC = ($34.56 / 2.8%) / $480 = 2.57xCAC payback = $480 / $34.56 = 13.9 monthsThe default score is 97/100. LTV/CAC is the limiting metric even though NRR and payback clear their entered targets.
Data sources
Keep numerator and denominator cohorts aligned
- Billing-system ARPA after discounts and credits
- Logo churn and expansion from the same cohort window
- Fully loaded direct support cost
- Blended CAC matched to the acquired segment
Benchmark caution
Targets are policies, not universal facts
Enterprise, usage-based, self-serve, and early-stage products can have materially different healthy ranges.
Subscription pricing benchmark FAQ
Questions about interpreting the score
Why not average raw percentages?
The metrics use different units and directions; target normalization makes them comparable.
Why is support cost subtracted after gross margin?
It isolates recurring contribution available to recover CAC after direct service burden.
Can the score replace cohort analysis?
No. It is a compact diagnostic that points to the cohort analysis needed next.
Practical examples
Subscription Pricing Benchmark Calculator in real planning situations
- Test whether discounting is eroding list-price realization.
- Compare contribution LTV/CAC with a three-times policy threshold.
- Find whether payback or retention is the primary pricing constraint.
Important note
Before relying on this result
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Additional Subscription Pricing Benchmark Calculator questions
Are the default targets universal?
No. Replace them with the policy, segment, and maturity stage relevant to the business.
Why use contribution LTV?
It removes direct service cost and gross-margin leakage before valuing the customer relationship.
Can NRR exceed 100%?
Yes, when expansion more than offsets logo churn in this simplified rate model.