SaaS MRR & Growth Calculator
Calculate and track the metrics that matter most for subscription businesses. Monthly Recurring Revenue (MRR) is the foundation of SaaS business health, providing predictable revenue visibility that enables better planning, forecasting, and valuation.
Why MRR Matters
MRR is the heartbeat of any subscription business. Unlike one-time revenue, recurring revenue compounds over time as your customer base grows. A business with $10,000 MRR and 5% monthly growth will exceed $200,000 MRR within three years. Understanding and optimizing your MRR components is essential for sustainable growth.
Key SaaS Metrics Formulas
MRR (Monthly Recurring Revenue)
``
MRR = Number of Customers × Average Revenue Per User (ARPU)
`ARR (Annual Recurring Revenue)
ARR = MRR × 12
`Churn Rate
Monthly Customer Churn = Lost Customers / Starting Customers × 100
Monthly Revenue Churn = Churned MRR / Starting MRR × 100
`Customer Lifetime Value (LTV)
LTV = ARPU / Monthly Churn Rate
LTV (with margin) = (ARPU × Gross Margin) / Monthly Churn Rate
`LTV:CAC Ratio
LTV:CAC = Customer Lifetime Value / Customer Acquisition Cost
`MRR Components Explained
Component Description Impact New MRR Revenue from new customers Growth driver Expansion MRR Upgrades, upsells, add-ons Highest margin revenue Contraction MRR Downgrades to lower plans Early warning signal Churned MRR Cancellations and non-renewals Direct revenue loss Net New MRR New + Expansion - Contraction - Churned Overall health metric
SaaS Benchmarks by Company Stage
Metric Seed Series A Series B+ Enterprise Monthly MRR Growth 15-20% 10-15% 5-10% 3-5% Gross Revenue Churn <5% <3% <2% <1% Net Revenue Retention >100% >110% >120% >130% LTV:CAC Ratio >2:1 >3:1 >4:1 >5:1 CAC Payback <18 mo <12 mo <9 mo <6 mo
Key Metric Relationships
Understanding how metrics interconnect helps optimize your business:
- Lower churn → Higher LTV: Each 1% reduction in churn significantly increases customer lifetime value
- Higher ARPU → Better unit economics: Focus on value-based pricing and upsells
- Faster payback → More growth capital: Efficient CAC recovery enables reinvestment
- Net Revenue Retention >100%: Expansion revenue from existing customers exceeds churn
Growth Calculation
`javascript
// Calculate months to reach target MRR
function monthsToTarget(currentMRR, targetMRR, monthlyGrowth) {
const growthRate = 1 + (monthlyGrowth / 100);
return Math.ceil(Math.log(targetMRR / currentMRR) / Math.log(growthRate));
}
// Calculate MRR after N months
function futureMRR(currentMRR, months, growthRate, churnRate) {
const netGrowth = growthRate - churnRate;
return currentMRR * Math.pow(1 + netGrowth / 100, months);
}
``
Using This Calculator
Enter your current customer count, ARPU, churn rate, and growth rate to see projections for MRR growth, ARR, customer lifetime value, and revenue forecasts. Use the results to identify improvement opportunities and set realistic growth targets.