SaaS pricing models
SaaS pricing model trends 2026
At the start of 2026, the split between pricing models was fairly even. In Q2, consumption-based pricing became the leading model for the first time. Now, in Q3, per-user pricing has dropped to the least common of the three models, overtaken by hybrid pricing.
This shift signals a continued change in the vendor-buyer relationship:
- Per-usage extends its lead: Per-usage pricing rose from 36.5% to 37.1% in Q3 2026, keeping its place as the single most common pricing model. Growth has slowed from Q2's 2.5-point jump to a 0.6-point gain, but the direction hasn't changed. Vendors keep pushing to tie costs directly to consumption, particularly for AI-powered features where usage can vary dramatically month to month.
- Seat-based pricing falls to last place: Per-user pricing fell a further 1.1 percentage points to 31.4%, making it the least common model for the first time. It has now lost 3.7 points since Q1, when it was the most common model at 35%, continuing the broader shift away from flat per-seat fees.
- Hybrid edges ahead: Hybrid pricing rose 0.4 percentage points to 31.5%, just enough to overtake per-user pricing. Hybrid models combine a fixed base fee with variable usage costs, and their steady growth suggests some vendors are moving away from pure per-seat pricing without going all the way to consumption-based models.
For finance and procurement teams, this means a growing share of software spend is genuinely variable rather than fixed. Between per-usage and hybrid models, nearly 7 in 10 pricing models now include a variable element. AI cost optimization tools help track and forecast this variable spend before it causes unexpected budget overruns. Our own data shows that spend on consumption-priced tools can vary by as much as 37.6% month to month, so that kind of forecasting matters more than ever. Choosing a tool with access to real-time pricing benchmarks also helps confirm whether usage-based rates and overage charges are fair, not just whether a fixed license fee is competitive.
Data source: These insights are derived from over $75bn of global processed spend managed by Vertice in 2026. Q3 2026 figures are preliminary and based on data processed to date.
Are you overpaying for SaaS?
Are you overpaying for SaaS?
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As of Q3 2026, consumption-based (per-usage) pricing is the most common model (37.1% of contracts), followed by hybrid pricing (31.5%). Per-user pricing (31.4%) is now the least common of the three models for the first time.
Yes. Per-usage pricing rose from 34.0% in Q1 2026 to 36.5% in Q2 and 37.1% in Q3, while per-user (seat-based) pricing declined from 35.0% to 32.4% and then 31.4% over the same period. Between per-usage and hybrid models, nearly 7 in 10 pricing models now include a variable element.
Variable volatility. Unlike seat-based models where costs are fixed, hybrid models allow the usage-based portion of costs to scale indefinitely. Without annual credit rollovers and overage price protection, a single high-activity month can consume a large share of the annual budget. Vertice's research on monthly budget variance shows spend on consumption-priced tools can vary by as much as 37.6% month to month, making this risk far from theoretical. With hybrid pricing now overtaking per-user pricing, more contracts carry this risk. Having the right SaaS spend management tool in place – particularly one with budget management capabilities – is crucial for catching these swings before they blow through a quarterly budget. For a deeper look at how consumption-based pricing is reshaping software costs, download Vertice's report on consumption-based pricing models.
AI cost optimization tools help track and forecast variable, consumption-based spend before it causes budget overruns, while pricing benchmarks help confirm whether usage-based rates and overage charges are competitive, not just the fixed portion of a contract.