Should I…? – Decision
Should I offer an annual discount on my SaaS?
Verified · editorial policy
Verdict
Yes
VerdictYes – 15 to 25% annual discount, framed as 'two months free'.
Decision key facts
TL;DR
- Question
- Should I offer an annual discount on my SaaS?
- Verdict
- Yes – Yes – 15 to 25% annual discount, framed as 'two months free'.
- Category
- pricing
- Last verified
- May 22, 2026
Direct answer
Direct answer
As of , the answer is: Yes. Offer an annual plan at a 15 to 25% discount, framed as 'two months free' (a 16.7% discount). Annual customers churn 3 to 5x less than monthly customers, so the discount pays for itself in retention. Don't default to annual; show monthly as the default with a toggle to annual.
Why
- 'Two months free' converts better than '17% off' framing. Same math, more concrete value.
- Trigger an annual upgrade prompt at day 60 to 90 of monthly use – the buyer has formed a habit and is more receptive.
- Avoid annual-only pricing for new buyers. Locking in a 12-month commitment before trust is built underconverts dramatically for indie SaaS.
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