---
title: "Should I charge monthly or annual for my SaaS?"
summary: "Offer both. Monthly as the default lowers commitment friction for new buyers; annual at a 15 to 25% discount captures buyers who've already decided. Locking customers into annual-only structures works for established brands but underconverts for indie SaaS where buyers haven't built trust yet."
canonical: https://unlocksaas.com/answers/should-i-charge-monthly-or-annual
updated: 2026-05-19
publisher: "Unlock SaaS"
author: "Maryan"
license: All rights reserved. Quotation with attribution permitted.
---

# Should I charge monthly or annual for my SaaS?

> Offer both. Monthly as the default lowers commitment friction for new buyers; annual at a 15 to 25% discount captures buyers who've already decided. Locking customers into annual-only structures works for established brands but underconverts for indie SaaS where buyers haven't built trust yet.

## Supporting points

- Annual plans churn 3 to 5x less than monthly. Annual customer LTV is typically 8 to 12x monthly customer LTV.
- Customers who choose annual at signup are 'high-conviction' buyers; they convert at lower top-of-funnel rates but stay much longer.
- Trigger annual upgrade prompts at day 60 to 90 of monthly use – the buyer has formed a habit and is more receptive to annual commitment.

## Related terms

- [Value Ladder](https://unlocksaas.com/glossary/value-ladder) – An ordered sequence of offers a customer can move through, each delivering more value than the last at a price proportional to the delivery.
- [Offer](https://unlocksaas.com/glossary/offer) – What the page asks for and what it gives in return, structured so the perceived value is unambiguously higher than the price.

---

Canonical URL: https://unlocksaas.com/answers/should-i-charge-monthly-or-annual
Publisher: Unlock SaaS (https://unlocksaas.com)
Contact: maryan@unlocksaas.com