Offer economics · free calculator
Subscription Pricing
More cash upfront. What does it cost later? Compare your offers over the same time horizon.
Hypothetical USD inputs. One acquired cohort, not a company-growth forecast. Your scenario stays here until you send a mentor chat.
One new customer group
Offer 1
Offer 2
New-customer mix: 100%. Must total 100%. Later active mix changes with each offer’s renewal loss.
Fees and service costs
12-month contribution · one acquired cohort
$6,232.98 net cash received, less $913.29 service costs. Acquisition, overhead and tax are excluded. Customer counts and renewal outcomes are expected values under your assumptions.
Compare one starting payer per offer.
Same horizon, each offer’s own renewal-loss assumption. These figures do not predict which offer customers choose.
Monthly
$10.00 / month · $10.00 monthly-equivalent
8% lost per renewal
contribution / starting payer
Annual
$60.00 / year · $5.00 monthly-equivalent
35% lost per renewal
contribution / starting payer
First annual offer versus 12 payments on “Monthly”: 50.0% discount. Compare like-for-like features. This is a price comparison, not a retention-adjusted result.
Inspect the monthly ledger
| Month | Cumulative net cash | Cumulative service | Gross MRR | Active payers |
|---|---|---|---|---|
| 1 | $2,125.00 | $100.00 | $850.00 | 100.0 |
| 2 | $2,672.40 | $194.40 | $794.00 | 94.4 |
| 3 | $3,176.01 | $283.65 | $742.48 | 89.2 |
| 4 | $3,639.33 | $368.16 | $695.08 | 84.5 |
| 5 | $4,065.58 | $448.30 | $651.48 | 80.1 |
| 6 | $4,457.73 | $524.44 | $611.36 | 76.1 |
| 7 | $4,818.52 | $596.88 | $574.45 | 72.4 |
| 8 | $5,150.43 | $665.93 | $540.49 | 69.0 |
| 9 | $5,455.80 | $731.86 | $509.25 | 65.9 |
| 10 | $5,736.74 | $794.91 | $480.51 | 63.1 |
| 11 | $5,995.20 | $855.32 | $454.07 | 60.4 |
| 12 | $6,232.98 | $913.29 | $429.75 | 58.0 |
A comparison, not an optimal price
Which offer is worth testing?
Bring your offer mix and renewal assumptions to Marc Louvion and the Adapty Subscriptions AI mentor. Review the trade-off between customer value, cash and ongoing obligations.
Review my subscription offers ↗A worked comparison
The discount is only part of the decision.
A $10 monthly plan with 8% lost at each renewal produces 7.904 expected payments in its first 12 months. At 15% fees and $1 service cost per paid month, it leaves about $59.28 per starting payer. A $60 annual offer leaves $51 after fees, then $39 after a full year of service.
The annual offer collects more at the first payment but contributes less in this example. A different renewal rate can reverse the comparison. None of these numbers predicts customer preference.
How the cohort is calculated
All customers begin paid access on the start date, split by the new-customer shares. A plan loses its entered percentage only at each renewal: seven days for weekly, calendar months for monthly and calendar years for annual. The horizon excludes the next boundary date. No new customers, trials, upgrades or plan switching are added. Fractional expected customers are intentional.
Cash, MRR and service obligations
Cash arrives on the billing date in this model; actual payouts may be delayed. Refunds reduce each charge proportionally, percentage fees apply to the retained receipts and a fixed fee applies to every expected charge. Refunds do not separately change active access. Service costs accrue each calendar day. Gross MRR normalizes annual prices by 12 and weekly prices by 52/12; actual weekly charges follow seven-day intervals, so cash may include 53 charges in a year.
Stripe’s subscription revenue-recognition examples explain why cash and earned revenue differ. This planning model is not an accounting ledger. Check Apple’s subscription terms for your actual fee and offer rules; 15% is an editable example, not a universal rate.
What a pricing test still needs
Prices exclude sales tax. Fees, refund policies and service costs vary. Discounts can change conversion, customer mix and renewal behavior. Enter separately justified renewal losses for each period; using 8% weekly and 8% annually does not describe equivalent retention. Compare equivalent benefits when interpreting the annual discount. Acquisition, company overhead, financing and tax are excluded. Service obligations after the chosen horizon are also excluded, even when an earlier charge paid for that future access.
Read the offer before choosing the discount
Should you offer $10 monthly or $60 annually? Follow the contribution comparison and the renewal assumption that reverses it.
Separate a cancellation request from the end of paid access before entering renewal loss. If AI usage is a major service cost, check typical and heavy-user costs first.