Does defaulting to annual billing increase ARPU?
Default is destiny—especially on the pricing page.
Annual-by-default pricing layouts are commonly reported to increase annual plan share by roughly 12–35% relative.
A/B test
business
saas
If you…
Pre-select annual plan (with monthly toggle) on pricing page
Then…
Share of subscribers choosing annual billing → +12–35%
Context
Subscription SaaS, US/EU consumers and SMB, 2022–2025
What changes
Annual-by-default pricing layouts are commonly reported to increase annual plan share by roughly 12–35% relative.
When this tends to work
- Conditions similar to: Subscription SaaS, US/EU consumers and SMB, 2022–2025
- You can measure
Share of subscribers choosing annual billingreliably - The intervention is implemented consistently, not half-measured
When to be careful
- Your audience or product differs materially from the cited context
- Compliance costs or second-order effects outweigh the lift
- Evidence label is ab_test—treat wide ranges as planning bands, not promises
Practical takeaway
Use the cited range for prioritization and test design. Verify against your own data before scaling.
Sources
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