SaaS Pricing & Churn Projector
Project your Monthly Recurring Revenue (MRR) and customer base over time, considering your pricing and churn rate. Essential for SaaS business planning.
Projected MRR after 12 Months:
$2,701.80
Starting with 100 customers at $50.00/month with 5% churn.
Monthly Projection Breakdown
| Month | Customers | Projected MRR |
|---|---|---|
| 0 | 100.00 | $5000.00 |
| 1 | 95.00 | $4750.00 |
| 2 | 90.25 | $4512.50 |
| 3 | 85.74 | $4286.88 |
| 4 | 81.45 | $4072.53 |
| 5 | 77.38 | $3868.90 |
| 6 | 73.51 | $3675.46 |
| 7 | 69.83 | $3491.69 |
| 8 | 66.34 | $3317.10 |
| 9 | 63.02 | $3151.25 |
| 10 | 59.87 | $2993.68 |
| 11 | 56.88 | $2844.00 |
| 12 | 54.04 | $2701.80 |
Understanding SaaS Metrics: MRR and Churn
For any Software as a Service (SaaS) business, understanding and projecting Monthly Recurring Revenue (MRR) and Churn Rate are paramount. These metrics directly impact the health and scalability of your business model.
Key Definitions:
- Monthly Recurring Revenue (MRR): The predictable recurring revenue a company expects to receive every month. It's a normalized metric that smooths out one-time payments and variable charges.
- Churn Rate: The rate at which customers cancel their subscriptions or stop doing business with you. It's usually expressed as a percentage of your customer base or revenue over a given period (in this case, monthly).
This calculator demonstrates how even a small churn rate can significantly impact your customer base and MRR over time. It highlights the importance of not only acquiring new customers but also retaining existing ones.
Strategies for Growth:
- Reduce Churn: Focus on customer success, provide excellent support, and continuously improve your product to keep customers engaged.
- Increase Average Revenue Per User (ARPU): Offer upsells, cross-sells, or premium features to existing customers.
- Acquire New Customers: Invest in marketing and sales to grow your customer base, but ensure your acquisition cost is sustainable.
By actively managing these levers, SaaS businesses can achieve sustainable growth and long-term profitability.