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Will a new tier improve profit after cannibalization?
Balance upgrade contribution against customers trading down and launch cost.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Current customers
- 1,000
- Customers upgrading
- 15 %
- Annual contribution uplift / upgrade
- $1,200
- Customers trading down
- 8 %
- Annual contribution lost / downgrade
- $600
- One-time launch cost
- $50,000
First-year net contribution
Example result only, not a forecast or promise.
- Annual upgrade contribution
- $180,000
- Annual cannibalization
- $48,000
- Break-even upgrade share
- 8.2%
What to do with this result
Test willingness to pay and model migration by customer cohort; prevent the new tier from becoming a discount path.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Year-one net = upgrades × contribution uplift − downgrades × contribution loss − launch cost.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Contribution excludes fixed overhead, tax and financing; validate demand response before changing prices.