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?

ApproachRiskWhen to use
New customers onlyLowestYour first increase ever
Existing with 60-day noticeMediumYou've shipped clear value since they signed up
Existing, grandfathered 6–12 moLowLoyal base, high LTV
Everyone at onceHighestPrice is far below market

How do you raise prices?

  1. Pick the new price: Set it from value and competitor data.
  2. Launch to new signups: Watch conversion for 2–4 weeks.
  3. Decide on grandfathering: Choose how long existing customers keep their old price.
  4. Send the announcement: Email customers 30–60 days ahead.
  5. Offer an annual lock-in: Let customers keep the old rate by switching to annual, as a retention lever.
  6. 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.


Want a human to make the call?

Pricing Decision + Rewrite — $299, delivered in 72h, refund guarantee. Get the Pricing Decision + Rewrite

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.