Per-Seat SaaS Cost Calculator
Most business software is priced per user per month. Enter the vendor's price and your team size to see the real monthly and yearly bill, including seat minimums, flat platform fees, discounts and planned hiring.
- Per month
- $300.00
- Seats billed
- 25
- Cost per user, per year
- $144.00
- Next 12 months with growth
- $3,600.00
You'd pay for 0 unused seats because of the seat minimum.
The formula
Billed seats = larger of (users, seat minimum)
Monthly cost = billed seats × price × (1 − discount) + platform fee
Yearly cost = monthly cost × 12
Cost per user = yearly cost ÷ users
With 25 users at $12.00 per user per month, the bill is $300.00 a month, or $3,600.00 a year. The growth figure adds up 12 monthly bills while the team grows evenly from today's size to the size you expect in a year, so you can budget for hiring.
Hidden costs to check before you sign
- Billing basis. "Billed annually" prices are often lower than month-to-month prices for the same plan. Compare them with the monthly vs annual calculator.
- Seat minimums and tiers. Some features sit only on higher tiers, and some plans start at a minimum number of users.
- Add-ons and usage fees. Extra storage, API calls, AI credits and premium support are often priced separately.
- Renewal increases. First-year discounts can disappear at renewal. Model the change with the price increase calculator.
- Inactive users. People who left or never logged in still occupy paid seats until someone removes them.
Questions and answers
What does "per user per month, billed annually" mean?
The vendor quotes a monthly price per person, but you pay 12 months up front for every seat. A plan at $10 per user per month billed annually costs $120 per seat at signup. The same plan billed monthly is often priced higher per month.
What is a seat minimum?
Some plans bill a minimum number of seats even if fewer people use the software, for example "minimum 5 users". The calculator bills the larger of your team size and the minimum, and shows how many seats you would be paying for without using.
How do I calculate software cost per employee?
Divide the yearly cost of the tool by the number of people who actually use it. When a seat minimum or a flat platform fee applies, the cost per user is higher than the advertised per-seat price, which is why the calculator shows both.
Can I add seats in the middle of a contract?
Usually yes, and many vendors prorate the added seats for the rest of the term. Removing seats mid-term is often not allowed on annual contracts, so check before you buy for a team that may shrink.
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