SaaS

Freemium Conversion Calculator

Free users are not free when each account creates AI or infrastructure cost. Model the conversion needed to cover that cost.

Formula

Break-even conversion = free-user cost / contribution per paid user.

How to use this calculator

If 10,000 free users cost $0.35 each per month, your paid conversion rate must cover that burn before freemium becomes healthy.

This page explains the arithmetic behind the estimate so you can adjust assumptions before using the number in planning.

Learn how free-user cost, paid conversion, and paid contribution determine whether a freemium model can cover itself.

Why is freemium risky for AI products?

Each free user may create model, storage, or compute cost.

Does this include support cost?

No. Add support cost to variable cost if it scales with users.

Can this predict conversion?

No. It only shows the conversion needed under your assumptions.