# Marginal Revenue in SaaS: Formula, Marginal Costs, and Pricing Implications

DevFeed: [Marginal Revenue in SaaS: Formula, Marginal Costs, and Pricing Implications](<https://devfeed.tech/articles/marginal-revenue-for-saas-why-the-next-customer-is-almost-pure-profit-9971.md>)

Original publisher: [Read original article](<https://dodopayments.com/blogs/marginal-revenue-saas-explained/>)

Author: Ayush Agarwal

Published: 2026-06-07T00:00:00Z

Content type: tutorial

Language: en

Sources: [Dodo Payments Blog](<https://devfeed.tech/sources/dodo-payments-blog.md>)

Topics: [Software as a service](<https://devfeed.tech/topics/saas.md>), [Software](<https://devfeed.tech/topics/software.md>)

Tags: [cost](<https://devfeed.tech/tags/cost.md>), [economics](<https://devfeed.tech/tags/economics.md>), [payment-processing](<https://devfeed.tech/tags/payment-processing.md>), [pricing](<https://devfeed.tech/tags/pricing.md>), [pricing-strategy](<https://devfeed.tech/tags/pricing-strategy.md>), [revenue](<https://devfeed.tech/tags/revenue.md>), [saas](<https://devfeed.tech/tags/saas.md>), [saas-finance](<https://devfeed.tech/tags/saas-finance.md>), [subscription](<https://devfeed.tech/tags/subscription.md>)

## AI overview

This guide explains marginal revenue in SaaS, including its formula, how subscription pricing affects it, and why SaaS marginal costs can remain relatively low as customer volume grows. It also discusses discounting, tier design, and the difference between marginal revenue and marginal contribution.

## Source excerpt

Marginal revenue explained for SaaS founders. Formula, why SaaS marginal cost is near zero, and pricing implications when one more customer costs you almost nothing.