Recurring Revenue Growth Calculator

Project MRR growth, forecast customer expansion, and analyze the impact of churn on your subscription business.

Key Benefits:

  • Project MRR growth with realistic churn considerations
  • Calculate total revenue over any time horizon
  • Analyze customer growth metrics with ARPU insights
  • Understand the compound effect of recurring revenue
  • Plan for sustainable business growth and scaling
  • Compare different growth and churn scenarios
  • Generate month-by-month revenue projections
  • Share calculations with stakeholders and investors

Recurring Revenue Growth Parameters

Enter your current revenue metrics and growth assumptions to project future performance.

Share Your Scenario

Copy link with your current inputs

Recurring revenue growth inputs

Current Business State

Your current revenue and average customer value. Customer count will be calculated automatically.

$

Your current monthly recurring revenue from all customers

$

Average monthly revenue per customer - enables customer growth analysis

Current Customer Count: 100
Based on $5,000 MRR ÷ $50 ARPU

Customer Growth & Churn Rates

How fast you acquire new customers vs. how many you lose each month.

%

Expected percentage growth in new customers each month

%

Percentage of customers lost each month due to churn

Projection Period

Choose how far into the future you want to project your growth.

Number of months to project into the future (1-60 months)

Example: SaaS Business Growth

• Current: 100 customers at $50/month = $5,000 MRR

• Customer Growth: +5 new customers/month (5% rate)

• Customer Churn: -3 customers/month (3% rate)

• Net Customer Growth: +2 customers/month

Result: 124 customers → $6,200 MRR after 12 months

Net Growth Rate: 2.0% per month
Your business is growing! 🚀

Recurring revenue growth

Revenue Growth Projection

Your projected recurring revenue growth over 12 months.

Future MRR

$6,216.87

Monthly recurring revenue after 12 months

Total Revenue

$67,060.45

Total revenue generated over 12 months

Net Growth Rate

2.0%

Monthly net growth rate (growth - churn)

Revenue Growth Multiplier

1.2x

Total revenue growth multiplier

Customer Growth Metrics

Current Customers
100
Current customer count
Future Customers
124
Customer count after 12 months
Net Customer Growth
24
Net change in customer count

Monthly Revenue Projections

MonthMRRCustomersNewChurned
1$5,000.00100
2$5,100.00102+5-3
3$5,202.00104+5-3
4$5,306.04106+5-3
5$5,412.16108+5-3
6$5,520.40110+6-3
7$5,630.81113+6-3
8$5,743.43115+6-3
9$5,858.30117+6-3
10$5,975.46120+6-4
11$6,094.97122+6-4
12$6,216.87124+6-4

Growth Trajectory

Your MRR will grow from $5,000.00 to $6,216.87 over 12 months, representing a 1.2x growth multiplier.

Moderate Growth Rate

Your net growth rate of 2.0% per month is positive but moderate. Consider strategies to accelerate growth or reduce churn.

Customer Growth Insights

You'll grow from 100 customers to 124 customers, acquiring 62 new customers while losing 36 to churn.

Revenue Compounding

Your total revenue over 12 months will be $67,060.45. This includes the compounding effect of growth on your existing revenue base, demonstrating the power of recurring revenue models.

Frequently Asked Questions

How is recurring revenue growth calculated?

The calculator applies your monthly growth rate to add new revenue, then subtracts revenue lost due to churn. This net growth compounds each month: New MRR = Previous MRR × (1 + Growth Rate - Churn Rate). The calculation accounts for the reality that both growth and churn happen simultaneously.

What is a good monthly growth rate for recurring revenue?

Monthly growth rates vary by business stage and industry. Early-stage SaaS companies often see 5-20% monthly growth, while mature companies typically see 2-10%. The key is ensuring your growth rate consistently exceeds your churn rate to maintain positive momentum.

How accurate are long-term revenue projections?

Projections become less accurate over longer time horizons due to market changes, competition, and business evolution. We recommend using 6-18 month projections for operational planning and longer projections for strategic scenario analysis only.

What is considered a healthy churn rate?

Monthly churn rates vary by industry and customer segment. B2B SaaS typically sees 3-8% monthly churn, while B2C subscriptions may see 5-15%. Lower churn rates generally indicate better product-market fit and customer satisfaction.

Should I include one-time fees in MRR calculations?

No, MRR should only include predictable, recurring revenue streams like monthly subscriptions, retainers, or contracted services. One-time setup fees, consulting, or variable usage fees should be tracked separately as they don't represent recurring business.

How does ARPU help with revenue projections?

Average Revenue Per User (ARPU) enables customer-level analytics by converting revenue metrics to customer counts. This helps you understand how many customers you need to acquire and retain to hit revenue targets, making your projections more actionable.

What if my churn rate exceeds my growth rate?

Negative net growth means your business is shrinking. Focus on reducing churn through improved onboarding, customer success programs, and product improvements, while simultaneously increasing customer acquisition through marketing and sales investments.

Can I model different pricing tiers or customer segments?

This calculator provides a simplified view assuming average metrics across your entire customer base. For complex scenarios with multiple pricing tiers or customer segments, consider running separate calculations for each segment or using specialized cohort analysis tools.
Results are estimates for informational purposes only. Consult professionals for important decisions.

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