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Software renewal price increase calculator
Enter your current yearly spend, the uplift the vendor proposes and the cap you want. You get the cost over the term of each and the saving from a cap.
A renewal uplift compounds each year of the term. At the default numbers a 9 percent annual uplift costs USD 68,775 more than a flat price over 3 years, and a 5 percent cap saves USD 31,560.
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
Accepting 9 percent a year turns a USD 120,000 bill into USD 155,403 by the last year, and costs USD 68,775 more than a flat price over 3 years. Holding the rise to 5 percent saves USD 31,560.
| First year price at the proposed uplift | USD 130,800 |
|---|---|
| Total over the term at the proposed uplift | USD 428,775 |
| Total over the term at the cap | USD 397,215 |
| Extra cost over a flat price at the proposed uplift | USD 68,775 |
| Saving from the cap | USD 31,560 |
| Yearly price in the last year at the proposed uplift | USD 155,403 |
The currency box changes the label only. Enter amounts in the currency you choose.
Free PDF and Excel
Save this result as a PDF guide and an Excel model
Free to download. You enter your name, work email and phone number, and the files are ready at once.
- PDF guide with the formula, a worked example and a checklist of what to enter
- Excel model with live formulas, so your own numbers recalculate at once
- Ready at once after the form, with no account to create
The files open with the example numbers from the page. Type yours over the blue cells in the Excel file. The calculator on this page is free to use without a form.
How the software renewal price increase calculator works
The formula
Total over the term = spend x (1 + uplift) x ((1 + uplift)^years - 1) / uplift. Compare the proposed uplift with the cap.
A single year uplift looks small. Repeated each year it compounds, so the third-year bill is higher than most people expect. The calculator shows the total across the whole term, which is the number to take to the vendor and to your finance lead.
Vendors expect pushback on uplift. The strongest asks are a cap written into the contract, a longer term at a lower rate and a price hold in return for a commitment. See the pricing guide for each vendor in the pricing guide library.
The example numbers are illustrative and are not benchmarks. Use your own data for any decision.
How to use it with your own data
- Enter this year spend and the uplift on the renewal quote.
- Set the cap you would sign. Many buyers ask for a figure near inflation.
- Take the saving figure to the renewal meeting along with usage data, and offer something in return.
Mistakes that skew the answer
Looking only at year one
The risk is the repeat. Ask for a cap that applies to every later renewal.
Taking a multi-year lock without a cap
A fixed term protects the price only if the contract says so.
Forgetting seat growth
If seats grow, the uplift applies to a bigger base. Use the seat true-up calculator for that.
What to do with the result
Pair the result with the SaaS license waste calculator so you can negotiate on both price and quantity. For vendor-specific price history, read the guide for your tool, such as the Salesforce pricing guide or the HubSpot pricing guide.
Questions about the software renewal price increase calculator
How much do software vendors raise prices at renewal?
It varies by vendor and contract. Many quotes include an annual uplift, and the rate is often negotiable, especially for multi-year terms.
What is a reasonable cap?
A cap near current inflation is a common ask. The right figure depends on the vendor and on what you offer in return.
Should I sign a longer term to avoid uplift?
Only if the longer term includes a price hold or cap in writing, and you are confident you will use the product for the whole term.
Does the calculator include seat changes?
No. It covers price only. Use the seat tools for quantity.