Annual vs Monthly Pricing Calculator
Offering an annual plan is one of the best ways to boost cash flow and cut churn — but how big should the discount be? Enter your monthly price and the discount you're considering, and this free tool shows the annual price, the effective monthly cost, and the "months free" equivalent so the offer is easy to frame. No signup.
A common annual discount is "2 months free" (about 17%), but anything from 10–25% is normal. Bigger discounts lift annual take-up and cash flow but lower per-customer revenue — pick the trade-off that fits your goals. Model how the resulting recurring base grows with the MRR projector.
Why offer an annual plan?
Annual billing brings cash up front (great for a bootstrapped business), and annual customers churn far less than monthly ones — they've committed for a year, so you keep them longer and spend less re-acquiring them. The discount is the incentive you pay for that commitment.
Frame the offer around the "months free" number — "Pay annually, get 2 months free" is more compelling than "save 17%". Once your pricing is set, see how the base compounds with the recurring revenue projector, and read how to price a digital product for the bigger picture.