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Should the feature move down a tier?
What moving a flagship feature down a tier does to ARR once upgrades won are netted against downgrades lost.
Your numbers
Starting numbers: A software business with three tiers, deciding whether to move a feature down from the top plan. Change anything below.
Share of mid-tier customers who move up because of this feature.
Share of top-tier customers who drop a tier once the feature is available lower down.
What the middle plan costs.
What the top plan costs.
How many customers you have across all tiers.
What this also assumes (4)
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Change in yearly recurring revenue
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How it's computed
About this calculator
Repackaging is a bet with two sides. Moving a flagship feature down a tier gives some middle-tier accounts a reason to upgrade toward the richer plan, but it also removes the reason some top-tier accounts were paying a premium, and a share of them will drop down. This model prices both flows against the gap between the two tier prices and nets them into a single annualized revenue change. It also shows what share of the upgrade win the downgrades eat: past a full share, the repackaging destroys revenue outright.
Pull the upgrade and downgrade rates to match what your account managers actually expect, adjust the tier prices, and watch the net effect change sign. The chain shows every step of the arithmetic. Save the model with your numbers to stress-test scenarios and take a priced answer into the packaging debate.
Every number on this page is computed live by the LeverMap engine.