Subscription Revenue & MRR Forecaster
Forecast compound monthly recurring revenue over 12 months based on growth and churn assumptions. Free interactive SaaS financial projection tool.
Calculated Results
Month 12 Ending MRR
$22,521.92
Projected ARR
$2,70,262.99
Net Monthly Growth
7.0%
About this tool
Forecasting subscription revenue requires understanding the compounding interplay between monthly new user growth and monthly customer churn. Unlike transactional business models where sales restart from zero on the first day of every month, SaaS revenue builds on top of an existing retained base. However, if monthly churn is left unmanaged, the growing base eventually leaks as many dollars as new sales bring in, leading to a frustrating revenue plateau. By modeling your net growth rate—monthly acquisition percentage minus monthly churn percentage—founders can map realistic 12-month MRR trajectories and evaluate the impact of lowering churn by just one or two percentage points. Use this calculator to model your 12-month MRR and ARR growth curves.
How It Works
- 1Input your current starting Monthly Recurring Revenue (MRR).
- 2Enter your projected monthly gross growth rate percentage.
- 3Enter your expected monthly gross revenue churn percentage.
- 4Select your forecast horizon (e.g. 12 months).
- 5Inspect the month-by-month projected MRR schedule and final annualized ARR.
Formula & Math
Transparent LogicProjected MRR(m) = Starting MRR × (1 + (Monthly Growth% - Monthly Churn%) / 100)^m
Worked Practical Example
A software startup begins with $10,000 MRR, models 10% monthly gross growth and 3% monthly churn (net 7% monthly growth).
Calculation / Steps
Month 1: $10,000 × 1.07 = $10,700. Month 12: $10,000 × (1.07)^12 = $22,522.
Expected Result
Projected 12-month ending MRR of $22,522 ($270,264 ARR; 125% net annual expansion).
Frequently Asked Questions
Why does reducing churn have a bigger impact on long-term revenue than increasing acquisition?+
Because retained revenue compounds indefinitely without new acquisition cost, whereas acquisition spend stops yielding returns the moment marketing budgets are paused.
What is net growth rate?+
Net growth rate is your gross monthly acquisition rate minus your gross monthly revenue churn rate.
How often should early-stage founders update their revenue forecast?+
Review monthly and revise quarterly based on actual cohort retention data and real-world conversion rates.
Automate retention on your cancel button
BoolBul bends your compounding revenue curve upward by suppressing the churn variable directly in your monthly growth equation.
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