Skip to main content
All calculators

Free calculator · Venture & Startup Finance

Subscription MRR Model

Projects monthly recurring revenue forward month by month, with ending MRR equal to beginning MRR plus new MRR minus churned MRR. Inputs are the price per unit, new units added per month, the monthly churn rate, and the number of months to project.

By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026

From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.

AI training for finance teams · Consulting · The 10 Laws of Finance

Interactive Tool

Subscription MRR Model

Price per unit / month
New units per month
Monthly churn
Months to project

Ending MRR

$13,232

month 3

ARR

$158,782

ending MRR × 12

New MRR / mo

$4,500

price × new units

Churn (last mo)

−$178

2.0% of beginning

Annual churn

22%

compounded 12 mo

Churn is the most consequential number: it compounds on the whole base every month, so 2.0% monthly is about 22% a year, not the 24% a linear estimate implies.

Learn the concept

This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.

Open Entrepreneurial Finance
Embed this calculator on your site

Free to embed on any site; the widget includes an attribution link back to this page.

One useful finance email a week

A tool, a number worth knowing, and what it means for your money or your business. From Devon Coombs, CPA, MBA. No spam, unsubscribe anytime.

Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.