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SaaS Revenue Calculator (MRR & ARR)

Instantly calculate MRR and ARR to understand the financial health of your business.

For any SaaS business, MRR and ARR are the North Star metrics. Our calculator helps founders, VCs, and product managers quickly model revenue based on customer count, ARPU, and churn rate. Make data-driven decisions and forecast your growth with confidence.

SaaS Revenue Calculator (MRR & ARR)

Estimate your monthly and annual recurring revenue based on key SaaS metrics.

500
$49
5.0%

About This Tool

The SaaS Revenue Calculator is an indispensable tool for anyone in the Software-as-a-Service industry. Monthly Recurring Revenue (MRR) and its annual counterpart, Annual Recurring Revenue (ARR), are the lifeblood of a subscription business. These metrics provide a predictable measure of a company's financial health and growth trajectory. Our calculator simplifies the process of modeling these key metrics. By inputting your number of active customers, your Average Revenue Per User (ARPU), and your monthly customer churn rate, you can instantly see your current MRR and ARR. More importantly, the tool includes a projection chart that illustrates the powerful, and often corrosive, effect of churn over time. This helps stakeholders understand not just where the business is today, but where it's headed if customer acquisition stalls. It's a fundamental tool for financial modeling, investor reporting, and strategic planning.

How to Use This Tool

  1. Use the slider to input your current number of active customers.
  2. Set the average monthly revenue you receive per customer (Monthly ARPU).
  3. Set your estimated monthly customer churn rate as a percentage.
  4. Click "Calculate Revenue".
  5. The tool will display your current MRR and ARR.
  6. Review the 12-month projection chart to understand the impact of your current churn rate on future revenue.

In-Depth Guide

What is MRR (Monthly Recurring Revenue)?

MRR is the predictable revenue that a business can expect to receive on a monthly basis. It is the single most important metric for a subscription business. The basic formula is: `MRR = Number of Customers * Average Monthly Revenue Per Customer (ARPU)`. It should only include predictable, recurring revenue, not one-time fees or variable charges.

What is ARR (Annual Recurring Revenue)?

ARR is simply your MRR multiplied by 12. It annualizes your monthly recurring revenue to give a clearer picture of the business's scale on a yearly basis. It is the metric most commonly used by enterprise SaaS companies and VCs for valuation and reporting.

The Silent Killer: Customer Churn

Churn is the percentage of customers who cancel their subscriptions in a given period. It's a silent killer for SaaS businesses because it works against your growth. As our projection chart shows, even a seemingly small churn rate of 5% can erode your customer base and revenue significantly over time. A successful SaaS business must keep its monthly churn as low as possible, ideally below 2% for established companies.

The Holy Grail: Negative Net Revenue Churn

The ultimate goal for a SaaS company is to achieve negative net revenue churn. This occurs when the expansion revenue (upgrades, cross-sells, add-ons) from your existing customers is greater than the revenue you lose from customers who churn or downgrade. When you achieve this, your revenue will grow even if you don't add a single new customer. It's the sign of a truly healthy, sticky product.

Frequently Asked Questions