How This Calculator Works
Subscription Revenue turns the inputs into a visible formula-based estimate. Use it to compare margin, funnel movement, CAC, revenue, cost, and scenario planning before changing pricing, spend, or operations.
Use the subscription revenue calculator to estimate MRR, ARR, lost revenue from churn, and projected next-month revenue after growth.
MRR is active customers multiplied by monthly revenue per customer. Next month adjusts customers for churn and new customers.
Formula
MRR = customers x ARPU. Next customers = current customers - churned customers + new customers.
Example Calculation
850 customers at $39 ARPU creates $33,150 MRR and $397,800 ARR.
When to Use This Calculator
- Estimate SaaS revenue
- Model churn impact
- Plan subscription growth
Practical Scenarios
- Run the calculator before changing pricing, spend, hiring, or targets so margin and cash impact are visible. Use case: Estimate SaaS revenue.
- Compare conservative, base, and optimistic assumptions when revenue, conversion, CAC, or cost can move quickly. Start with Subscription Revenue, then compare the changed result with the original.
- Use related business calculators when one metric affects the wider funnel, payback, runway, or profit picture. This is especially useful when you need to plan subscription growth.
Tips
- Segment by plan when possible
- Use net revenue retention for mature SaaS
- Churned revenue can matter more than churned customers
Common Mistakes
- Ignoring plan mix
- Treating new trials as customers
- Using customer churn when revenue churn is needed
- Reading revenue as profit before fees, refunds, discounts, labor, taxes, and fulfillment costs are included.
- Mixing monthly, annual, cohort, and campaign numbers in the same calculation.
Assumptions and Limitations
The Subscription Revenue Calculator is strongest when revenue, cost, margin, period, and funnel assumptions all use the same reporting window. Review the formula, assumptions, and related calculators before using the result in a decision.
- Refunds, chargebacks, taxes, payment fees, labor, seasonality, and contracts can change real outcomes.
- The result is a planning estimate, not accounting, tax, legal, or professional advice.
- Verify assumptions against current records before changing prices, budgets, or strategy.
Subscription Revenue explains subscription revenue, MRR, ARR and SaaS revenue through decision context such as margin, period, funnel quality, and cash impact.
Recommended Next Calculators
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BusinessCAC
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