Tier Pricing Optimizer

Plan multi‑tier pricing by combining price points with expected customer mix per tier. Enter signups, tier prices, and shares to estimate weighted ARPU and monthly revenue, and explore how packaging shifts shares.

Guidance

Use differentiation (features, limits, support) to shift shares toward higher tiers while preserving self-selection.

What is tier pricing optimization?

Tier pricing optimization balances plan prices and customer mix to maximize revenue and capture value from higher‑willingness segments.

How to use this calculator

Enter monthly signups, three tier price points, and the expected share per tier. The tool normalizes shares, computes weighted ARPU, and estimates monthly revenue.

Why it matters

Well‑designed tiers align value to price and let customers self‑select, improving monetization without hard sell tactics.

Example

With 1,000 signups and shares 50/35/15 at $15/$30/$60, weighted ARPU is ~$26.25 and monthly revenue ~$26,250.

Assumptions & limitations

Shares are estimates and can shift with packaging. Consider adding an enterprise tier or add‑ons if top segments are constrained.

Design principles

Good‑better‑best tiering, clear price fences (limits, features, SLAs), and decoy tiers can nudge selection. Keep tiers simple and value‑aligned.

Benchmarks

Many products see mixes around 50–35–15 or 60–30–10 (basic/standard/premium). Your mix should evolve with packaging and segment focus.

Common pitfalls

Overlapping tiers, confusing limits, underpriced premium plans, and excessive complexity. Monitor upgrade quality and churn across tiers.

Step‑by‑step check

Normalize shares to sum to 100%, compute weighted ARPU, and multiply by signups. Test alternative price points and feature fences to observe share shifts.