SaaS MRR Calculator
Calculate your SaaS Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), churn impact, and growth projections from your subscription data.
SaaS Metrics
12-Month Projection
How to Use This Tool
- Enter your current number of paying customers.
- Enter your average revenue per user (ARPU) per month.
- Enter how many new customers you typically add per month.
- Enter your monthly churn rate — the percentage of customers who cancel each month.
- Enter any expansion MRR from upgrades and upsells to existing customers.
- Review your MRR, ARR, net new MRR, growth rate, LTV, and the 12-month projection.
Formula & How It Works
Monthly Recurring Revenue (MRR)
MRR = Customers × ARPUThe predictable subscription revenue earned each month, before considering growth or churn.
Annual Recurring Revenue (ARR)
ARR = MRR × 12MRR annualized to show the yearly run rate.
Net New MRR
Net New MRR = New MRR + Expansion MRR − Churned MRR, where New MRR = New Customers × ARPU and Churned MRR = MRR × (Churn Rate / 100)The net change in recurring revenue for the month; positive means the business is growing.
Customer Lifetime Value (LTV)
LTV = ARPU ÷ (Monthly Churn Rate / 100)Estimates total revenue an average customer generates over their lifetime, assuming a constant monthly churn rate.
Average Customer Lifetime
Average Lifetime (months) = 100 ÷ Monthly Churn Rate (%)The expected number of months a customer stays subscribed before churning, derived from the churn rate.
Practical Examples & Common Use Cases
Early-stage SaaS startup
500 customers at $49/month ARPU gives MRR = $24,500 and ARR = $294,000. With 30 new customers/month, 3% churn, and $1,000 expansion MRR: New MRR = 30 × $49 = $1,470, Churned MRR = $24,500 × 0.03 = $735. Net New MRR = $1,470 + $1,000 − $735 = $1,735, a 7.1% monthly growth rate. LTV = $49 ÷ 0.03 = $1,633.
Growing mid-market SaaS company
2,000 customers at $120/month ARPU gives MRR = $240,000 and ARR = $2.88M. With 80 new customers/month, 1.5% churn (strong retention), and $8,000 expansion MRR: New MRR = 80 × $120 = $9,600, Churned MRR = $240,000 × 0.015 = $3,600. Net New MRR = $9,600 + $8,000 − $3,600 = $14,000, about 5.8% monthly growth. LTV = $120 ÷ 0.015 = $8,000.
Consumer subscription app with high churn
10,000 customers at $9.99/month ARPU gives MRR = $99,900. With 600 new customers/month, 8% churn, and no expansion revenue: New MRR = 600 × $9.99 = $5,994, Churned MRR = $99,900 × 0.08 = $7,992. Net New MRR = $5,994 + 0 − $7,992 = −$1,998, meaning the business is shrinking despite strong new signups. LTV = $9.99 ÷ 0.08 = $124.88, illustrating why lowering churn is critical when ARPU is low.
Frequently Asked Questions
MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business earns each month. It equals the number of paying customers multiplied by the average revenue per user (ARPU).
For B2B SaaS, 2-5% monthly churn is typical. Under 2% is excellent. B2C SaaS often sees higher churn (5-10%). Enterprise SaaS with annual contracts may have less than 1% monthly churn.
NRR measures revenue from existing customers over time, including expansions and contractions. NRR above 100% means expansion revenue exceeds churn — a sign of a very healthy SaaS business.
LTV = ARPU / Monthly Churn Rate. For example, $49 ARPU with 3% churn = $1,633 LTV. A common target is LTV/CAC ratio of 3:1 or higher.
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