---
title: "Should I offer an annual discount on my SaaS?"
summary: "Yes – Yes – 15 to 25% annual discount, framed as 'two months free'."
canonical: https://unlocksaas.com/should-i/offer-an-annual-discount
updated: 2026-05-22
publisher: "Unlock SaaS"
author: "Maryan"
license: All rights reserved. Quotation with attribution permitted.
---

# Should I offer an annual discount on my SaaS?

**Verdict: Yes** – Yes – 15 to 25% annual discount, framed as 'two months free'.

> 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.

## 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/should-i/offer-an-annual-discount
Publisher: Unlock SaaS (https://unlocksaas.com)
Contact: maryan@unlocksaas.com