Pricing is the part of building a business that makes people physically uncomfortable.
Not because it's complicated — the math is middle school algebra. Because it forces you to answer a question you'd rather leave open: what is this actually worth, and what does my life need it to be worth?
Those are two different numbers. And the gap between them is where most solo founders get stuck.
You know pricing matters. You've read enough to know that undercharging is the most common mistake. You've seen the tweets: "Just raise your prices." Easy to say. Harder to do when the idea of someone seeing your price and clicking away feels like personal rejection.
So you pick something low. Safe. "I'll start at €15 and raise it later." Later never comes, because now you have customers at €15 and raising it feels like betraying them.
Every Price Implies a Different Business
This is the thing most pricing advice skips over. Your price isn't just a number — it's a business model in disguise.
- At €9-15/month — You're in the volume game. You need hundreds of customers, which means serious acquisition channels, low churn, and a product that practically sells itself. Your marketing budget matters more than your feature set.
- At €29-49/month — The sweet spot for many solo products. You need fewer customers but each one has to see clear, immediate value. You're selling a painkiller, not a vitamin. Free trials need to deliver an "aha" moment fast.
- At €79-149/month — You're probably selling to small businesses, not individuals. The buying decision involves someone justifying the expense to someone else (even if that someone else is their own bank account). You need case studies, ROI stories, and a product that visibly saves time or money.
- At €200+/month — You're in sales territory. Customers expect a conversation before they buy. Your website is a lead generation tool, not a checkout page. This is a different job entirely.
None of these are wrong. But they're different businesses. Different audiences. Different levels of effort. And if you don't know which one you're building, you're going to optimize for the wrong things.
"I'll start cheap and raise prices later" is the startup equivalent of "I'll start exercising Monday." The right time to price correctly is before your first customer, not after your hundredth.
What the Calculator Actually Shows You
The calculator above works backward from the life you want. Not the price you think the market will tolerate — the income you actually need, the number of customers that implies, and the traffic and conversion rates required to sustain it.
Here's what each input is really asking:
- Target monthly income — Not revenue. Income. After costs, after taxes, after the payment processor takes its cut. What do you actually need to deposit in your bank account?
- Price per customer — The number you're considering. The calculator shows you what that number demands.
- Costs per customer — Support time, infrastructure per user, transaction fees. These eat into your margin in ways that compound.
- Churn rate — The silent killer. At 5% monthly churn, you lose half your customers every year. You're running on a treadmill that speeds up. At 2%, you're building a snowball. This single number changes everything.
- Conversion rate — What percentage of visitors actually buy. Industry average for SaaS is 2-5%. If your plan requires 10%, you're planning for a miracle.
The output isn't "charge this amount." It's "here's what each price demands of you." Some founders look at the numbers and realize they need to charge more. Some realize they need to reduce churn. Some realize their target income requires a fundamentally different approach than they imagined. All three are useful.
The Pricing Mistakes That Keep Showing Up
After running hundreds of founders through this exercise:
- Pricing based on what competitors charge — Your competitor might have 10x your traffic, a team of three, or venture funding that lets them lose money for years. Their price is their strategy, not yours.
- Pricing based on cost — "It costs me €2/user so I'll charge €10." That's a margin calculation, not a pricing strategy. Price based on value to the customer, not cost to you.
- Having only one tier — You're leaving money on the table and making it harder for people to say yes. Give people a way in, a way up, and a way to get more.
- Discounting on day one — If your first instinct is a launch discount, you don't trust your own pricing. Fix the price or fix the value, but don't paper over doubt with a coupon code.
- Ignoring the funnel math — A €49/month product with 3% conversion needs ~1,667 visitors per month per customer. Where are those visitors coming from? If the answer is "I don't know," the price is academic.
Your price is a filter. Too low and you attract people who don't value what you've built. Too high and nobody shows up. The right price is the one where the people who pay are glad they did.
Pricing Is Validation
Here's what most founders don't realize: pricing is one of the most powerful validation tools you have. Someone willing to pay €49/month for your product is telling you something fundamentally different than someone who'll use it for free.
Free users tell you the concept is interesting. Paying customers tell you it solves a real problem. The gap between "interesting" and "worth money" is where most ideas go to die — quietly, politely, without anyone ever saying no.
The calculator above won't tell you what to charge. It'll show you what each price demands, so you can pick the business you actually want to build.
Ready to run the numbers?
Try the Pricing Calculator →Pricing tells you what your business needs to look like. Whether the idea behind it holds up is a different question.
Pressure test your idea with Cat →