Input Metrics
Final MRR
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Final ARR
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Final Customers
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Total Revenue
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Growth Over Time
Month-by-Month Breakdown
| Month | Starting Customers | New | Lost | Ending Customers | MRR | ARR |
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Model your future subscription revenue by adjusting key growth levers.
Final MRR
$0
Final ARR
$0
Final Customers
0
Total Revenue
$0
| Month | Starting Customers | New | Lost | Ending Customers | MRR | ARR |
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Operating a SaaS business requires more than building a great product — you must understand the metrics that predict your revenue, growth, and long-term sustainability. Below, we break down each concept so you can get the most accurate and meaningful results from your projections.
Monthly Recurring Revenue (MRR) is the lifeblood of any subscription business. It represents how much predictable revenue your SaaS generates every month.
MRR = Active Customers × ARPUBecause MRR is recurring and stable, it is one of the first metrics investors evaluate. In this tool, changes in customer count, churn, ARPU, and growth rate directly impact your projected MRR curve. Even small increases in growth or reductions in churn can produce significant compounding effects over time.
ARR (Annual Recurring Revenue) is simply your MRR multiplied by 12. It gives a big-picture perspective of your subscription revenue at a yearly scale.
ARR = MRR × 12ARR is commonly used in valuation models and financial planning. This tool automatically calculates your ARR projection so you can forecast what your business might make per year based on your inputs.
Average Revenue Per User (ARPU) tells you how much each customer contributes in revenue on average.
ARPU = MRR ÷ Total CustomersIncreasing ARPU is one of the fastest ways to grow revenue. This can be achieved through:
In the projection tool, adjusting ARPU instantly changes your MRR curve.
Your Monthly Growth Rate represents the percentage increase in your customer base each month. It comes from marketing, word of mouth, product quality, and customer referrals.
A 5% growth rate means your customers compound by 5% every month. Even a small monthly growth rate can lead to exponential increases when projected over 12–36 months.
Churn Rate is the percentage of customers that cancel each month. High churn kills SaaS growth.
Examples of churn consequences:
This tool subtracts churn from your growth to calculate net new customers, which represents true SaaS health.
Every month, the tool calculates:
This creates a clear picture of how your business evolves over time. You can adjust sliders to simulate different business scenarios and instantly visualize the outcome.
The month-by-month table allows you to see each calculation in detail, including:
This makes the model transparent and easy to understand for founders, investors, and team members.
Imagine you start with:
After 36 months, your SaaS could grow to:
This shows how powerful compounding growth can be, even with modest monthly increases.
Here are actionable strategies to improve each key metric:
Projections are models, not guarantees. They give directional insight based on your inputs but real-world results may vary.
Use MRR for monthly planning and ARR for long-term financial strategy.
Most SaaS businesses aim for 1%–5% monthly churn, depending on the market.
Ideally monthly, especially when tracking growth or preparing for fundraising.
Churn compounds — losing even 2% of customers monthly can reduce long-term growth significantly.