Skip to content
ENExplore Calculators

Freemium Conversion Value Calculator

Work out freemium conversion value instantly with clear inputs, formula shown and shareable results.

About Freemium Conversion Value Calculator

The number that decides whether a freemium funnel works is revenue per free user: conversion rate multiplied by paid ARPU. Compare it with the cost of serving a free user and with your paid acquisition cost per signup — if it is lower than either, the free tier is a subsidy rather than a channel.

Formulas

Revenue per free user

RPFU = Conversion % x Paid ARPU

Net contribution

Net = (Free users x Conversion % x ARPU) - (Free users x Cost to serve)

Worked example

With the default values below, Freemium Conversion Value Calculator returns Revenue per free user of $0.450. Change any input above and every figure here is recalculated in your browser.

Inputs used

Free users
50,000
Free-to-paid conversion
2.5
Monthly ARPU of paid users
18
Monthly cost to serve a free user
0.35

Results

Revenue per free user
$0.450
Converted paid users
1,250
Monthly revenue from conversions
$22,500.00
Net of free-tier serving cost
$5,000.00

Step by step

  1. 1Values used
  2. 2Revenue per free user
  3. 3Net contribution
  4. 4Revenue per free user= 0.450
  5. 5Converted paid users= 1,250
  6. 6Monthly revenue from conversions= 22,500.00
  7. 7Net of free-tier serving cost= 5,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What conversion rate is normal?

Broad consumer freemium runs at 1-3%; developer and prosumer tools with a hard usage ceiling can reach 5-10%.

Should I count support cost?

Yes. Free users generate support tickets, and in many products they are the largest hidden cost of the tier.

Related Calculators

Freemium Conversion Value Calculator | Calcrivo