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Founders and product leaders

Per seat, or per usage?

What each pricing model earns on the same customer base, which earns more, and which holds up in a bad month.

Your numbers

Starting numbers: A software business with a couple of hundred accounts, choosing between charging per seat and charging for what people use. Change anything below.

What you charge for one named user.

What you charge for one unit consumed.

How much a typical account consumes.

Usage-based revenue moves with your customers. This is the drop in a weak month.

How many customers you have.

Named users at a typical customer.

What this also assumes (1)

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What usage pricing adds over per seat

Yearly revenue on per seat
Yearly revenue on usage
What a bad month costs you on usage

How it's computed

About this calculator

Seat pricing bills the people who log in; usage pricing bills the work the product does. On the same customer base the two models earn different revenue, and they fail differently: seat counts fall slowly in a bad month, while consumption can fall fast. This model prices both on identical accounts, then applies each model's bad-month swing, so you see the usage premium in a normal month next to what that upside costs you in a downturn.

Pull the levers to match your seat price, unit price, consumption, and how hard usage swings when things go quiet. The chain above shows how each revenue line is built. When the numbers reflect your product, save the model to test hybrid mixes and pricing changes, and share it with your team.

Every number on this page is computed live by the LeverMap engine.