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.
Interactive Tool
Subscription MRR Model
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.
Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.