Method and assumptions
Use this as a floor for pricing experiments. Value, willingness to pay, packaging and competitor positioning still require customer research.
Required price = (fixed costs + target profit) ÷ customers ÷ target gross margin + variable cost per customer.
Common questions
Does this calculate willingness to pay?
No. It calculates a cost and margin floor; willingness to pay needs interviews and experiments.
Should hosting be fixed or variable?
Classify it according to how it changes with usage and customers in your own books.
Independent planning calculator. Not financial, tax, legal or investment advice.