How to Use This Calculator

Calculate your SaaS revenue metrics in 4 steps:

Enter Total Customers: Your current active subscriber count
Enter ARPU: Average revenue per user per month ($)
Enter New & Churned: Customer changes this month
View Results: See MRR, ARR, growth rate, and churn metrics

SaaS Revenue Formulas

This calculator uses standard SaaS metrics formulas:

          MRR = Total Customers × ARPU

          ARR = MRR × 12

          New MRR = New Customers × ARPU

          Churned MRR = Churned Customers × ARPU

          Net MRR = MRR + New MRR - Churned MRR

          Growth Rate = (New MRR - Churned MRR) / MRR × 100%

          Churn Rate = Churned Customers / Total Customers × 100%

          Retention Rate = 100% - Churn Rate

Real-World Example

Scenario: Growing SaaS startup

Input:

Total Customers: 500
ARPU: $49/month
New Customers: 50
Churned Customers: 20

Results:

MRR: $24,500
ARR: $294,000
New MRR: $2,450 | Churned MRR: $980
Net MRR: $25,970
Growth Rate: +6.00%
Churn Rate: 4.00% | Retention: 96.00%

Why MRR Matters for SaaS

MRR is the most important metric for subscription businesses because it:

Provides predictable revenue visibility
Helps with cash flow planning and budgeting
Attracts investors (ARR is key for valuations)
Measures business health and growth trajectory
Enables accurate hiring and resource planning

Frequently Asked Questions

What is a good MRR growth rate?

Early-stage SaaS companies often target 10-20% monthly growth. Mature companies typically see 3-8% monthly. The key is sustainable, predictable growth with healthy retention rates.

What's a good churn rate for SaaS?

For SMB-focused SaaS: 3-5% monthly churn is typical. For enterprise SaaS: 1-2% monthly is expected. Anything above 5% monthly indicates serious product-market fit issues.

Should I track MRR or ARR?

Track both! MRR is better for short-term operational decisions and cash flow. ARR is preferred by investors and for annual planning. ARR = MRR × 12.

How do I improve my MRR growth?

Focus on: (1) acquiring more customers, (2) increasing ARPU through upsells, (3) reducing churn through better onboarding and support, (4) expanding into new markets or segments.

Does this include one-time revenue?

No! MRR only includes recurring subscription revenue. Exclude one-time setup fees, consulting, or non-recurring charges. Those should be tracked separately.

💰 Revenue Metrics