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SaaS license waste calculator: what unused seats cost
Enter the seats you pay for, the seats used in the last 90 days and the price per seat. You get the yearly waste and the saving from cutting to a sensible number.
License waste is the number of paid seats minus active seats, multiplied by the seat price. At the default numbers 78 seats sit unused and cost USD 16,848 a year.
Written by Procurement VMS Editorial Team · Reviewed by Michael, Procurement Advisor Expert · Updated
Your numbers
The boxes start with an example so you can see how it works. Replace them with your own figures.
Your result
You pay for 78 seats nobody used in 90 days, which costs USD 16,848 a year. Renewing with 190 seats, including a 10 percent cushion, saves USD 12,960 a year.
| Unused seats | 78 seats |
|---|---|
| Yearly cost of unused seats | USD 16,848 |
| Share of seats unused | 31% |
| Seats to renew with | 190 seats |
| Yearly saving at that number | USD 12,960 |
The currency box changes the label only. Enter amounts in the currency you choose.
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How the SaaS license waste calculator works
The formula
Unused seats = paid seats - active seats. Yearly waste = unused seats x monthly seat price x 12. Target seats = active seats x (1 + buffer).
Software licences are bought for a headcount and then left to drift. People leave, roles change, and tools get replaced, but the seats stay on the invoice until someone looks. A review a few months before renewal finds most of the waste.
Right-sizing only works at the contract points where you can cut seats, so find the dates and the notice period. The contract renewal tracker keeps them in one place.
The example numbers are illustrative and are not benchmarks. Use your own data for any decision.
How to use it with your own data
- Export last activity by user from the admin console for the last 90 days.
- Count the users with no activity. Check with their managers before you remove them.
- Take the target seat count to the vendor at renewal, with the notice period in mind.
Mistakes that skew the answer
Counting a login as use
A login with no work is not use. Look at activity that matters for the tool.
Cutting to the exact count
Leave a cushion so you do not pay for extra seats at a higher true-up rate.
Missing the notice window
Many contracts need notice 30 to 90 days before renewal to reduce seats.
What to do with the result
Look up the vendor price guide in the pricing guide library, which shows list prices and renewal terms for 134 tools, then use the seat true-up calculator to check the cost of growth. Negotiate with the software renewal price increase calculator at hand.
Questions about the SaaS license waste calculator
How do I find unused software licences?
Export the last active date for each user from the vendor admin console, or from your identity provider, and list users with no activity in 90 days.
How many unused seats is normal?
It varies by company and by tool. Your own activity export is the only reliable answer.
Can I cut seats mid-contract?
Often not. Most contracts allow reductions only at renewal, so plan ahead.
What about shared accounts?
They break licence terms for most vendors and hide real use. Fix them before you count active seats.