Freemium-to-paid conversion revenue calculator
Turn your freemium funnel into a revenue model — and see exactly how much each percentage point of conversion rate is worth at your current free user base.
Enter your freemium MAU, your current paid conversion rate, and ARPU. The sensitivity table below shows MRR across a ±1% conversion rate range — the numbers make it clear why conversion rate optimisation is often the highest-leverage growth lever for freemium products.
Freemium conversion calculator inputs and results
Conversion rate sensitivity
| Conversion rate | Paid users | MRR | vs base |
|---|
How freemium conversion revenue works
The formula is straightforward: paid users = MAU × conversion rate, and MRR = paid users × ARPU. What makes freemium leverage unusual is that the conversion rate multiplies against a large free user base — so even a small percentage shift produces a significant dollar change.
The sensitivity table makes this concrete. At 50,000 MAU and a $29 ARPU, each additional 0.5% conversion rate adds 250 paid users and $7,250 in MRR. That's $87,000 in ARR from a change that looks tiny on a dashboard. Freemium businesses often have more leverage on conversion rate optimisation than on any other single growth lever.
The model assumes conversion rate is constant across all free users. In reality, users who have been active longer, used more features, or hit a specific paywall convert at higher rates. Segmenting your MAU by engagement cohort and applying different conversion rates to each will give you a more accurate model.
About this tool
This tool calculates MRR from a freemium funnel. Inputs: total freemium MAU, paid conversion rate %, ARPU (monthly). Output: paid user count, MRR, ARR, and a sensitivity table showing MRR at conversion rates from 1% below to 1% above your base, in 0.5% increments. Formula: MRR = MAU × (conversion rate ÷ 100) × ARPU.
Frequently asked questions
What is a good freemium-to-paid conversion rate?
Industry benchmarks vary widely by product type and price point. Most freemium SaaS products convert between 2% and 5% of free users to paid. Consumer apps often see lower rates (1–3%), while B2B tools with a clear free-to-paid upgrade path can hit 5–10% when the free tier is deliberately limited. Above 10% suggests the free tier may be too restrictive; below 1% suggests the paid tier isn't delivering enough additional value to justify the jump.
Why is a 1% conversion rate shift so significant?
Because conversion rate operates on your entire free user base. If you have 50,000 MAU and move from 3% to 4% conversion, you gain 500 more paid users — multiplied by your ARPU, that's meaningful MRR from a change that feels small in percentage terms. This is why the sensitivity table is the most useful output: it shows in dollar terms what improving (or losing) conversion is actually worth at your current scale.
What should I count as MAU for this calculation?
Monthly Active Users — users who took at least one meaningful action in the product in the last 30 days. Registered-but-inactive users inflate the denominator and make your conversion rate look worse than it is. Use only genuinely active free users as your base. If you don't track active vs inactive separately, a reasonable proxy is users who logged in at least once in the last 30 days.
Should I use ARPU or ARPPU here?
Use ARPPU (Average Revenue Per Paying User) — the average monthly revenue from customers who have actually converted to paid. ARPU (across all users including free) would undercount the revenue per paid customer since free users generate $0. The output of this calculator is the MRR from paid users, so the right input is what each paying user generates on average.