Unit Economics · SaaS metrics

SaaS Metrics Calculator

Free SaaS metrics calculator: turn MRR, new MRR, and churned MRR into ARR, net new MRR, growth rate, revenue churn, ARPU, and an LTV estimate in one view.

Monthly recurring revenue at the beginning of the period.

MRR from new customers and expansion/upsells.

MRR lost to cancellations and downgrades.

Active paying customers - enables ARPU and LTV.

Results

ARR (run-rate)

$600,000

MRR × 12.

Net new MRRNew MRR added minus churned MRR.
$6,000
MRR growth rateNet new MRR ÷ start-of-month MRR.
12%
Monthly revenue churnChurned MRR ÷ start-of-month MRR.
4%
ARPU (monthly)MRR ÷ customer count.
$250
Estimated LTVARPU ÷ monthly revenue churn - a gross-revenue approximation (no gross-margin adjustment).
$6,250

At $50,000 MRR you are on a $600,000 run rate, growing 12% this month ($6,000 net new) against 4% revenue churn - $250 ARPU across 200 customers.

Free and instant - nothing is stored or sent. Estimates for planning purposes, not accounting, tax, or investment advice.

Recurring revenue businesses live or die by a handful of numbers, and most of them fall out of just three inputs: your MRR, the new MRR you added this month, and the MRR you lost to churn. This calculator turns those into ARR, net new MRR, growth rate, monthly revenue churn, ARPU, and a first-pass LTV estimate.

These are the metrics an investor asks for on the first call and the ones an operator should watch every month. Use it to sanity-check a board deck, spot when churn is quietly eating your growth, or benchmark ARPU as you move upmarket.

What these metrics measure

MRR (monthly recurring revenue) is the predictable subscription revenue you earn each month; ARR (annual recurring revenue) is simply MRR × 12, the run-rate figure used for valuation. Net new MRR - new MRR minus churned MRR - is the truest single measure of momentum, because it nets growth against losses.

ARPU (average revenue per user) is MRR ÷ customers, and it tells you whether you are moving upmarket. Revenue churn is churned MRR ÷ starting MRR - the leak in the bucket that every dollar of new sales has to refill before you grow at all.

The formulas

ARR = MRR × 12. Net new MRR = new MRR − churned MRR. MRR growth rate = net new MRR ÷ start-of-month MRR. Monthly revenue churn = churned MRR ÷ start-of-month MRR. With the defaults: $50,000 MRR gives $600,000 ARR, $6,000 net new MRR, 12% growth, and 4% revenue churn.

The LTV estimate here is ARPU ÷ monthly revenue churn rate - $250 ÷ 4% = $6,250. It is deliberately a gross-revenue approximation: a rigorous LTV multiplies by gross margin and, for stricter models, discounts future cash flows. Treat this figure as a directional benchmark, not a valuation input.

How to read the result

Read growth and churn together. A 12% monthly growth rate looks great until you notice 4% of it is being spent just replacing churned revenue - your gross new business is really 16%. Revenue churn under ~2% monthly is commonly cited as healthy for SMB SaaS; above 5% monthly makes durable growth very hard.

ARPU trending up while customer count holds means you are selling bigger deals; ARPU flat while churn rises means you are acquiring worse-fit customers. The LTV figure is most useful next to CAC - pair it with the CAC and LTV calculators to check the 3:1 LTV:CAC screen.

Frequently asked questions

What is the difference between MRR and ARR?

MRR is monthly recurring revenue - the predictable subscription revenue in a single month. ARR is annual recurring revenue, simply MRR × 12, expressing the same run rate annually. Investors usually quote ARR for valuation; operators track MRR month to month because it reacts faster to new sales and churn. They are two views of the same underlying number.

How do you calculate monthly revenue churn?

Divide the MRR lost to cancellations and downgrades in the month by the MRR you started the month with. $2,000 churned against $50,000 starting MRR is 4% monthly revenue churn. Revenue churn differs from customer (logo) churn because losing one large account hurts revenue far more than losing one small one - track both.

What is a good SaaS churn rate?

For SMB-focused SaaS, monthly revenue churn under about 2% (roughly 20–24% annually) is commonly cited as healthy, and best-in-class companies reach net negative churn where expansion revenue outweighs losses. Enterprise SaaS typically runs lower churn because contracts are annual and switching costs are higher. Above 5% monthly, growth becomes very hard to sustain.

How is LTV calculated for a SaaS business?

A simple estimate is ARPU ÷ monthly revenue churn rate, which this tool uses - $250 ARPU ÷ 4% churn = $6,250. A more rigorous version multiplies by gross margin (so you count profit, not revenue) and, for longer horizons, discounts future cash flows. Use the gross figure for quick benchmarking and the margin-adjusted version for real unit-economics decisions.

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