How should SaaS companies display annual vs monthly pricing on their pricing page?

Written by
Passionate Designer & Founder
Chevron Right

How you display annual versus monthly pricing is one of those UX decisions that quietly moves real money. Get it wrong and users default to monthly out of habit. Get it right and you shift a meaningful chunk toward annual, which is better for revenue, churn, and basically every metric you care about.

The standard approach is a toggle or tab at the top of the pricing section, above the cards. Users need to see it immediately, before they start comparing plans. Label it clearly. Don't be clever.

To push people toward annual, show the savings right on the toggle. A badge that says "Save 20%" or "2 months free" works because it creates a small sense of loss if you pick monthly. Some companies default the toggle to annual, and A/B tests generally back this up as a way to increase annual uptake. Worth testing on your own audience, since results vary.

When someone selects annual billing, show them the monthly equivalent, not the lump sum. "$49/month, billed annually as $588" is much easier to process than "$588." The lump sum triggers sticker shock. The monthly breakdown doesn't.

A cheap but effective trick: cross out the original monthly price next to the discounted annual equivalent. It's not subtle, but it works. For higher-priced plans, showing the dollar savings ("Save $120/year") tends to land better than a percentage because the absolute number is more concrete.

Enterprise plans are a different situation. If pricing is custom, the toggle doesn't apply, and a "Contact Sales" button replaces the price entirely. No point showing a toggle that leads nowhere.

The honest summary: default to annual, show the savings clearly on the toggle itself, and display monthly equivalents on the cards. Those three things will do more for annual plan adoption than most other changes you could make to the pricing page. Test them in combination before assuming you've found the optimal setup, because the right defaults genuinely vary by product and price point.

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possible together.

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Let’s unlock what’s
possible together.

Start your project today or book a 15-min one-on-one if you have any questions.

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