Good-Better-Best Tier Margin Calculator

About this calculator

Good-Better-Best (GBB) pricing is a tiering strategy — popularized in retail and SaaS pricing research by economists like Rafi Mohammed — that offers three versions of a product at ascending price points to capture different customer willingness-to-pay. Each tier's profitability is judged the same way: margin % = (price − cost) ÷ price × 100, the standard gross-margin formula.

Because the "best" tier usually carries premium features at a higher price but not proportionally higher cost, it often posts the fattest margin, while a competitively priced "good" tier can run thin — sometimes intentionally, to anchor value and funnel buyers toward the middle option. Comparing all three margins side by side is how product and pricing teams check that no tier is unintentionally unprofitable.