Revenue and pricing assumptions

The Revenue section is where you define how you make money. It drives the MRR waterfall and everything downstream.

Pricing plans

Add one plan per tier (for example Starter, Pro, Enterprise). For each plan you set:

• Plan type — flat subscription, usage-based, or a hybrid of both.
• Start month — when the tier becomes available.
• Existing customers — how many customers are already on the plan at the start of the forecast.

Flat subscription

• Monthly fee — the recurring price.
• Annual discount % — the discount for customers who pay yearly (for example 20%, roughly two months free).

Usage-based pricing

For metered pricing you define the billable unit and how customers consume it:

• Block — the unit you charge for (API calls, GB stored, emails sent) and units per block.
• Free allowance — blocks included before charges begin.
• Price per block.
• Usage mix — the split of heavy, medium and light users, and their typical monthly usage.

Hybrid

Combine a flat monthly fee with a usage component when customers pay a base price plus overage.

Add-on modules

Model upsells separately from your core plans. For each module set a price and which plans adopt it, plus the adoption rate (what share of customers on a plan buy it). This feeds your expansion revenue.

Conversion assumptions

Set how prospects become paying customers: trial length, trial-to-paid conversion rate, and whether customers pay monthly or annually (which affects the timing of cash vs. recognized revenue).

Professional services

If you charge implementation fees or ongoing services, add them here — one-time fees per new customer and any recurring services revenue.

Related reading: SaaS pricing models.