About the SaaS Revenue Calculator
Recurring revenue is the heartbeat of a subscription business. Enter customers and price to get monthly and annual recurring revenue, and add churn and new customers to project where revenue heads over the next year.
How it’s calculated
MRR = customers × average monthly price. ARR = MRR × 12. Each month, customers change by new additions minus churn.
Example calculation
500 customers at $40/month is $20,000 MRR and $240,000 ARR; net 5% monthly growth lifts MRR toward roughly $34,000 in a year.
Frequently asked questions
What is churn?
Churn is the percentage of customers (or revenue) you lose each period. Even modest monthly churn compounds, so retention matters as much as new sales for long-term growth.
Should I use MRR or ARR?
They're the same figure at different scales — MRR for monthly operating detail, ARR (MRR × 12) for annual and investor-facing summaries.
This calculator provides estimates for educational purposes and should not be considered financial, tax, or legal advice. Your actual figures may vary with lender terms, fees, and market conditions.