How to Raise SaaS Prices Without Losing Customers
By Mike Redler · Updated Oct 16, 2026 · 2 min read
Short answer: Raise prices for new customers first. Give existing customers 30–60 days' notice, offer loyal accounts a grandfather period or a locked-in annual rate, and tie the increase to value you've added. Most SaaS companies see little extra churn from a 10–25% increase handled this way.
Definition: Grandfathering means letting existing customers keep their old price for a set period, or for as long as they stay subscribed.
Related reading: How to Price a SaaS Product (2026 Guide) · Annual vs Monthly SaaS Pricing: What Discount Should You Offer? · SaaS Pricing Psychology: 9 Tactics That Lift Upgrades
Get your free Instant Pricing Page Score →What are the signs you're underpriced?
- Almost no one pushes back on price on sales calls.
- Your win rate is above 40% and there's no discounting.
- Customers describe you as "a steal".
- Your heaviest users pay the same as your lightest users.
If 2 or more of these are true, you're leaving money on the table.
Should you raise prices for new or existing customers first?
| Approach | Risk | When to use |
|---|---|---|
| New customers only | Lowest | Your first increase ever |
| Existing with 60-day notice | Medium | You've shipped clear value since they signed up |
| Existing, grandfathered 6–12 mo | Low | Loyal base, high LTV |
| Everyone at once | Highest | Price is far below market |
How do you raise prices?
- Pick the new price: Set it from value and competitor data.
- Launch to new signups: Watch conversion for 2–4 weeks.
- Decide on grandfathering: Choose how long existing customers keep their old price.
- Send the announcement: Email customers 30–60 days ahead.
- Offer an annual lock-in: Let customers keep the old rate by switching to annual, as a retention lever.
- Measure for 90 days: Track churn, expansion and ARPA.
What should the announcement email say?
Subject: An update to your [Product] plan
Hi [Name]. Since you joined, we've shipped [3 improvements]. On [date], [Plan] moves from $X to $Y/mo. As a thank-you, you can lock in $X for 12 months by switching to annual before [date]. Questions? Just reply.
How much churn should you expect?
A well-communicated 10–25% increase usually adds only a small, short-lived bump in churn, which the higher ARPA more than covers. Model your break-even: the new churn rate can rise until (new price ÷ old price − 1) of revenue is lost before you come out behind.
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FAQ
How often should SaaS raise prices?
Review pricing every 6–12 months, and raise it when you've added value or the market has moved.
Should I grandfather customers?
Yes, for loyal and high-LTV accounts. Grandfather for a fixed window, not forever.
How much notice is required?
30 days at minimum; 60 days for annual and B2B contracts. Also check your Terms.
What percentage increase is safe?
10–25% is common and low-risk. Above 30%, add new value or a new tier alongside the increase.