---
title: "SaaS Annual Discount Statistics: 27% Off on Average vs 17%"
url: https://www.suffdigital.com/resources/data-studies/saas-annual-billing-discount
description: "SaaS annual discount statistics: pricing pages that state one take 27% off on average for yearly billing, above the 17% of \"two months free\". See the data."
lang: en
---

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SaaS companies that state an annual-billing discount on their pricing page take **27%** off on average for paying yearly, well above the roughly 17% that the common "two months free" rule of thumb implies. The median discount is 25%, across 16 pricing pages that put a number on it.

Analysis of 71 SaaS pricing pages, 16 with a stated annual discount · pricing pages of SaaS companies that rank in Google, September 2026

## Key Findings

1. 1. SaaS pricing pages that state an annual-billing discount offer **27%** off on average, and the median is 25%. Copy stat
2. 2. **11 of 16** SaaS companies that state an annual discount sit outside the 16% to 20% range that "two months free" implies, and 9 of them offer more. Copy stat
3. 3. Stated SaaS annual discounts range from **15%** to 50%. Copy stat
4. 4. **53.5%** of SaaS pricing pages mention annual or yearly billing. Copy stat
5. 5. **9 of 16** SaaS companies that state an annual discount set it between 20% and 33%. Copy stat

## Summary

A buyer on a SaaS pricing page flips the billing toggle from monthly to yearly. The price per month drops, and a small badge says "Save 25%." They are being asked to commit for a year up front, and the discount is the reason to say yes.

For a SaaS company, annual billing is cash in advance and a customer locked in for twelve months, so the discount is one of the most important numbers on the pricing page. Set it too low and few buyers switch; set it too high and the company gives away revenue it would have earned anyway. Knowing where the market sits helps set it deliberately.

SaaS companies that state an annual discount offer **27%** off on average, with a median of 25%. That is deeper than the "two months free" rule many teams start from, which works out to about 17%: only 5 of the 16 companies sit in the 16% to 20% range around it, and 9 offer more.

## What we measured

On September 23, 2026 we loaded the pricing pages of 71 SaaS companies that rank in Google search for SaaS and IT keywords, and read each page for annual-billing offers. 53.5% mentioned annual or yearly billing, and 16 stated the discount as a number.

An annual discount is a stated percent off, or a number of months free, for paying yearly instead of monthly. Months free are converted to a share of the year, so "two months free" is about 17%. The median is the middle discount when the 16 are lined up from smallest to largest; the average adds them up and divides by 16.

## The typical yearly discount is a quarter off

27%

is the average annual-billing discount on SaaS pricing pages that state one.

The median is 25%, a quarter off, and more than half the stated discounts, 9 of 16, fall between 20% and 33%. The spread is wide: the deepest stated discount is 50%, half off for paying yearly, and the shallowest is 15%. The three deepest discounters, at 38%, 40% and 50%, pull the average above the median.

SaaS companies by stated annual discount

15%

2

16% to 20%

5

25% to 29%

3

30% to 33%

3

Over 33%

3

Source: Suff Digital analysis of 71 SaaS pricing pages, 16 with a stated annual discount · pricing pages of SaaS companies that rank in Google, September 2026

20% is the single most common stated figure, used by three companies, and 15%, 25% and 33% follow with two each. Round figures like these are easy to show on a billing toggle, and buyers read them at a glance.

## Most discounts beat two months free

"Two months free" is a common rule of thumb for annual plans: pay for ten months, get twelve. It works out to about 17% off. Only 5 of the 16 stated discounts sit in the 16% to 20% range around it. Of the other 11, 9 are higher and 2 are lower, at 15%.

In practice, SaaS companies that state their discount are more generous than the rule suggests. A company offering two months free is below the median of 25% and below 9 of the 16 companies that publish a figure, which matters if buyers compare annual savings across tools.

## Half of SaaS pricing pages push yearly billing

53.5%

of SaaS pricing pages mention annual or yearly billing.

A yearly plan is standard on SaaS pricing pages, but most pages that offer one do not put a number on the saving. 16 of the 71 pages state a percentage or months free; the rest of the pages that mention yearly billing leave the saving unstated.

A stated number is easier to act on. "Save 20%" reads in a second; two prices, one monthly and one yearly, ask the buyer to do arithmetic at the moment they are deciding.

## What this means for SaaS companies

If you are setting an annual discount, 20% to 25% puts you in the middle of the market. Going below 17% puts you under all but 2 of the 16 companies that state a discount, and going above 33% puts you with the three deepest discounters. Pick the figure that matches how much the upfront cash and lower churn are worth to you, not the rule of thumb.

Whatever the discount, state it as a number next to the billing toggle, and test whether leading with the yearly price changes how many buyers choose it. A cro consultant (https://www.suffdigital.com/services/cro/cro-consultant) can run that pricing-page test and measure the effect on annual sign-ups and revenue.

## Embed this research

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<p style="font:14px/1.5 system-ui,sans-serif">Source: <a href="https://www.suffdigital.com/resources/data-studies/saas-annual-billing-discount">SaaS Annual Plans Come 27% Off on Average vs 17% for the 'Two Months Free' Rule - Suff Digital</a></p>

## Cite this study

APA

Suff Digital. (2026). SaaS Annual Plans Come 27% Off on Average vs 17% for the 'Two Months Free' Rule. https://www.suffdigital.com/resources/data-studies/saas-annual-billing-discount

Plain link

SaaS Annual Plans Come 27% Off on Average vs 17% for the 'Two Months Free' Rule - Suff Digital - https://www.suffdigital.com/resources/data-studies/saas-annual-billing-discount

## Frequently asked questions

### What is the average SaaS annual discount?

### Is two months free the standard SaaS annual discount?

### What is the biggest SaaS annual discount?

### How many SaaS pricing pages offer annual billing?

## Related studies

- CRO 36.3% of SaaS Homepages Offer Neither a Demo Nor a Free Trial: https://www.suffdigital.com/resources/data-studies/saas-homepage-demo-vs-trial
- CRO 61% of SaaS Pricing Pages Highlight No Plan as Most Popular or Best Value: https://www.suffdigital.com/resources/data-studies/saas-most-popular-plan-label
- CRO 70.4% of SaaS Pricing Pages Send Visitors to Contact Sales or Book a Demo: https://www.suffdigital.com/resources/data-studies/saas-hidden-pricing-pages
- PPC Software Companies Pay $30.36 per Google Ads Click on Average vs $10.82 Across Industries: https://www.suffdigital.com/resources/data-studies/saas-software-google-ads-cpc

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