How to Use the Pricing Calculator

Follow these steps to model revenue and profit for your tech product:

1. Input Your Parameters

Fill in the fields with your business data:

Pro Tip: Use realistic estimates based on your product’s historical data or industry benchmarks.

2. Click "Calculate"

  • After entering all values, click the green Calculate button.

  • Results will appear instantly in the table below.

3. Review Results

The calculator displays:

  1. Total Paid Users: Number of users who convert to paid plans.

  2. Total Revenue: Income from all paid tiers.

  3. Total Costs: Variable + fixed costs.

  4. Profit: Revenue minus costs.

Example Output :

Total Paid Users: 500

Total Revenue: $17,750

Total Costs: $6,000

Profit: $11,750

4. Test Scenarios

  • Adjust inputs (e.g., increase prices, reduce costs) and recalculate to see how changes impact profitability.

  • Use the "What-if" Analysis :

    • What if the conversion rate doubles?

    • What if enterprise pricing increases by 20%?

Important Notes
  1. Validation :

    • The calculator checks for invalid inputs (e.g., negative numbers, text).

    • Errors appear in red above the results (e.g., “Conversion rate must be between 0% and 100%” ).

  2. Tier Distribution :

    • Assume that 30% of paid users choose Tier 1, 50% choose Tier 2, and 20% choose Tier 3.

    • Adjust these ratios in the code if your audience behavior differs.

  3. Affiliate Tools :

    • Use tools like Hotjar (user behavior analysis) or ProfitWell (pricing optimization) to refine your strategy.

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