The verdict in three sentences
Solid SaaS pricing rests on three numbers: a 70 to 85% gross margin, monthly churn under 5% and an LTV/CAC ratio above 3. Freemium is an acquisition magnet, but it is conversion to paid tiers of EUR 15 to 90/month that funds the company. With an infra cost of EUR 2 to 8 per user, every tier must yield enough margin to absorb acquisition and support.
Building your tiers
A good tier ladder guides the customer to the right offer with legible, rising value. Freemium should be generous on usage but limited on high-value features (teams, API, reporting).
| Tier | 2026 price/month | Key limits | Target |
|---|---|---|---|
| Free | EUR 0 | 1 user, 50 items | Trial / solo |
| Starter | EUR 15 - 29 | 3 users, basic features | Micro-business |
| Pro | EUR 39 - 59 | 10 users, automations | SME |
| Business | EUR 79 - 90 | unlimited users, API, SSO | Mid-market |
| Enterprise | Custom quote | SLA, dedicated onboarding | Large accounts |
2026 golden rule: aim for 20 to 40% conversion from free to a paid tier on active accounts, and concentrate 60 to 70% of revenue on Pro and Business tiers.
The metrics that decide
Pricing does not live alone: it is judged via acquisition and retention. Here are the 2026 benchmarks to hold.
| Metric | 2026 target | Alert signal |
|---|---|---|
| Gross margin | 70 - 85% | < 65% |
| Monthly churn | < 5% | > 7% |
| LTV/CAC ratio | > 3 | < 2 |
| CAC payback period | < 12 months | > 18 months |
| Infra cost / user | EUR 2 - 8/month | > EUR 12 |
| Initial build cost | EUR 40,000 - 90,000 | — |
Building the platform (4 to 8 months) is a fixed cost; the churn/CAC/LTV mechanics then determine whether the pricing holds over time.
Mini case study
Sarah, founder of a management SaaS for architecture firms in Amsterdam, charges EUR 49/month on Pro. Her infra cost is EUR 4/user/month and support EUR 6/user/month, giving a gross margin of (49 - 10) / 49 = 80%. Her CAC is EUR 220 and a customer stays 30 months (3.3%/month churn), so LTV is 49 x 0.80 x 30 = EUR 1,176 and the LTV/CAC ratio is 5.3. With 300 paying customers, her MRR reaches EUR 14,700 and ARR EUR 176,400: enough to amortise a EUR 70,000 build in under 6 months of margin.
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FAQ
What gross margin should a vertical SaaS target in 2026?
Between 70 and 85%. Below 65%, infra or support cost is too heavy and the model funds neither acquisition nor product.
Is freemium still relevant?
Yes if it converts: aim for 20 to 40% move to paid on active accounts. Otherwise a time-limited free trial (14 days) is often more profitable.
How do I set a tier price?
Start from perceived value and target margin, not cost. A Pro tier at EUR 39-59/month must cover infra + support + a share of CAC while keeping 70%+ margin.
What churn is acceptable?
Monthly churn under 5% is healthy in B2B; above 7%, growth is eaten by departures and LTV collapses.
How much does the platform cost upfront?
Budget EUR 40,000 to 90,000 and 4 to 8 months of development for a multi-tier base with subscription billing and limit management.
Let's scope your project. Send us your target, planned tiers and acquisition budget: we will model pricing, margin and break-even. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
