SaaS Metrics

    Subscription Revenue Calculator for MRR, ARR, Churn and LTV

    How to Calculate MRR, ARR, Churn and LTV with the Subscription Revenue Calculator

    Forecast subscription revenue, MRR, ARR, customer growth, churn, and lifetime value. Compare recurring-revenue growth and retention scenarios.

    Formula

    MRR = sum of monthly-normalized active subscriptions; ARR = MRR x 12

    How to use the result

    Separate new, expansion, contraction, and churn MRR to identify the actual growth lever.

    Exclude one-time fees and normalize quarterly or annual contracts before summing MRR. Inputs and calculations stay in this browser.

    Stripe MRR guide

    Calculate MRR, ARR, growth rates, and churn metrics for your subscription business.

    Monthly Recurring Revenue (MRR)

    Calculate your MRR from subscriber count and average revenue per user.

    Annual Recurring Revenue (ARR)

    Convert your MRR to ARR by multiplying by 12 months.

    ARR Formula

    ARR = MRR × 12

    ARR gives you a standardized annual view of your recurring revenue, making it easier to compare performance year-over-year and with industry benchmarks.

    MRR Growth Analysis

    Calculate net new MRR and growth rate including new, expansion, churn, and contraction.

    Customer Churn Rate

    Calculate your customer churn rate, retention rate, and average customer lifespan.

    Churn Benchmarks (Monthly)

    <3%

    Excellent

    3-7%

    Average

    >7%

    High

    Understanding SaaS Revenue Metrics

    MRR (Monthly Recurring Revenue)

    MRR is the predictable revenue your business earns each month from subscriptions. It's calculated by multiplying the number of subscribers by the average revenue per user (ARPU).

    ARR (Annual Recurring Revenue)

    ARR is simply MRR multiplied by 12. It provides an annualized view of your recurring revenue, making it easier to plan and forecast long-term growth.

    Net New MRR Components

    • New MRR: Revenue from newly acquired customers
    • Expansion MRR: Additional revenue from existing customers (upgrades, add-ons)
    • Churned MRR: Lost revenue from customers who cancelled
    • Contraction MRR: Reduced revenue from downgrades

    How to use the Subscription Revenue Calculator

    Use this calculator to understand how subscription businesses grow (or stall) based on recurring revenue fundamentals. It helps you model MRR/ARR, net new MRR, retention and churn, and how small changes compound over time.

    MRR / ARR

    1. Enter your active subscriber count and average revenue per user (ARPU) for the period.
    2. Calculate to see MRR and the annualized ARR.
    3. Use this as the baseline for forecasting and budgeting.

    Net New MRR

    1. Enter New, Expansion, Churned, and Contraction MRR.
    2. Calculate to get net new MRR and see whether growth is acquisition-led or retention-led.
    3. Use this to prioritize sales, onboarding, or customer success work.

    Churn & Retention

    1. Enter starting customers and customers lost in a consistent period (monthly is common).
    2. Calculate churn rate, retention rate, and an estimated average customer lifespan.
    3. Compare your numbers to the benchmarks to understand urgency and expected growth headroom.

    Forecasting tips

    • Keep units consistent: monthly inputs should produce monthly outputs.
    • Track revenue churn and customer churn; enterprise SaaS often has low customer churn but higher revenue churn.
    • Even small churn improvements compound; a 1–2% absolute change can meaningfully shift ARR over a year.