Monthly Subscription Revenue Calculator
Most MRR tools stop at subscribers times price, which flatters any business with real churn. This one shows three views at once: a churn-adjusted MRR headline with ARR, the MRR movement waterfall for this month (new, expansion, churned, net new, growth rate and quick ratio), and a month-by-month projection that shows what churn alone does to your current base if you add nobody.
Waterfall inputs are optional. Leave all three blank to skip the movement view.
Monthly recurring revenue (churn-adjusted)
$0.00
Quick Answer
With 2,000 subscribers at $25 per month and 5% monthly churn, churn-adjusted MRR is $47,500.00 (against $50,000.00 before churn) and ARR is $570,000.00. Left to decay with no new signups, that base earns $459,639.91 over 12 months and shrinks to about 1,138 subscribers. The calculator above is pre-filled with this exact business, including its waterfall: 100 new subscribers, $500 expansion and $1,200 churned, for $1,800.00 net new MRR and a quick ratio of 2.50.
Key takeaways
- The headline here is churn-adjusted on purpose: subscribers × price overstates the month by exactly your churn rate.
- The waterfall and the projection answer different questions. The waterfall scores this month’s movement; the projection assumes no new signups at all and isolates retention.
- New subscribers enter the waterfall as a count and are valued at your average price. Mixed pricing makes that line an estimate, not an invoice total.
- There is no contraction (downgrade) line in the waterfall. If downgrades are a real leak in your business, this tool understates that leak and your billing system is the source of truth.
- Quick Answer
- How to use the monthly subscription revenue calculator
- The monthly subscription revenue formula
- Worked example: 2,000 subscribers at $25 with 5% churn
- Reading the projection table
- Benchmarks: churn, growth and the quick ratio
- What counts as MRR (and what does not)
- What competing calculators miss
- Frequently asked questions
- Add This Calculator to Your Website
- References
How to use the monthly subscription revenue calculator
Fill in the four base inputs, add this month’s movement if you have it, and click Calculate. Results stay hidden until you do, and the worked example is already loaded.
- Active subscribers and average price: paying subscribers today, and what each pays per month on average. Annual plans go in at the monthly equivalent (annual price ÷ 12).
- Monthly churn rate: the percentage of subscribers who cancel in a typical month. If you only have raw counts, work the rate out first with the churn rate calculator, then bring the percentage back here.
- Projection months: 1 to 60. Twelve is the honest default for planning; sixty shows the full cost of unchecked churn.
- Waterfall inputs (optional): new subscribers as a count, expansion and churned MRR as dollars. All three blank is a valid run: the waterfall simply reports zeros.
Revenue is not profit, and it is not cash collected either: failed payments and refunds sit outside this model. For the margin side of a subscription offer, the subscription box profit calculator works the cost stack that this page deliberately leaves out.
The monthly subscription revenue formula
Three formulas run this tool: the churn-adjusted headline, the waterfall identity, and the geometric decay behind the projection.
ARR = Churn-adjusted MRR × 12
New MRR = New subscribers × Average price
Net new MRR = New MRR + Expansion MRR − Churned MRR
MRR growth rate = Net new MRR ÷ (Subscribers × Average price) × 100
Quick ratio = (New MRR + Expansion MRR) ÷ Churned MRR
Projection month n revenue = Subscribers × (1 − churn rate)n−1 × Average price
Two definition choices deserve plain sight. First, the growth rate divides net new MRR by the current before-churn MRR (subscribers × price). Some waterfall tools divide by beginning-of-month MRR instead, which returns a slightly larger percentage for a growing business; neither is wrong, but the two are not comparable side by side. Second, the headline applies churn once, as a within-month adjustment. The projection then applies it month after month, which is why month 1 of the projection is the full $50,000.00 and the adjusted $47,500.00 shows up as month 2’s revenue. Revenue recognition for reporting follows its own rules on top of any of this: the FASB revenue recognition project page is the starting point for the accounting treatment, and Stripe’s revenue recognition documentation shows how one billing platform operationalises it.
Worked example: 2,000 subscribers at $25 with 5% churn
Enter 2000, 25, 5 and 12, with 100 new subscribers, $500 expansion and $1,200 churned, and click Calculate. The headline, the waterfall and three projection rows below are exactly what the tool prints.
| Output | Value | How it arises |
|---|---|---|
| Churn-adjusted MRR | $47,500.00 | 2,000 × (1 − 5%) × $25 |
| Before-churn MRR / ARR | $50,000.00 / $570,000.00 | 2,000 × $25; adjusted MRR × 12 |
| Net new MRR | $1,800.00 | $2,500 new + $500 expansion − $1,200 churned |
| Growth rate / quick ratio | 3.60% / 2.50 | $1,800 ÷ $50,000; $3,000 ÷ $1,200 |
| Projection month 1 | $50,000.00 | 2,000 subscribers, churn not yet applied |
| Projection month 6 | $38,689.05 | 1,548 subscribers shown (1,547.6 unrounded) |
| Projection month 12 / total | $28,440.00 / $459,639.91 | 1,138 subscribers shown; 12 months summed |
The decay, drawn to scale from the same run:
Reading the projection table
The projection is a retention-only view: each month the subscriber count shrinks by the churn rate and revenue follows, with no new signups anywhere in it.
That assumption is the point. It answers “what does my current base earn me if I add nobody?”, which separates a retention problem from an acquisition problem. Two reading details matter. The table rounds the subscriber count for display (1,548 in month 6) but computes revenue from the unrounded count (1,547.6), so multiplying the displayed subscribers by the price will not reproduce the revenue line to the cent. And the totals are front-loaded by geometry: the first six months of the worked example contribute $264,908.11 of the $459,639.91 twelve-month total, because the base is biggest before churn has bitten. A growth-shaped version of this view, where acquisition compounds instead of decaying, is what the hockeystick revenue model calculator sketches.
Benchmarks: churn, growth and the quick ratio
The tool judges two things against fixed bands: monthly churn against a 5% line, and the quick ratio against the standard 2 and 4 cut-offs.
| Metric | Band | What the tool says |
|---|---|---|
| Monthly churn | Above 5% | Warning Churn is above the 5% monthly benchmark for healthy SaaS |
| Monthly churn | 5% or below (and above 0) | Healthy Churn is within the healthy benchmark |
| Quick ratio | Above 4 | Excellent Growth is outrunning losses by 4 to 1 or better |
| Quick ratio | 2 to 4 (4.00 exactly included) | Good Gains comfortably exceed churned MRR |
| Quick ratio | Below 2 | Concerning Acquisition is barely outpacing, or losing to, churn |
Read the 5% line as a SaaS convention, not a law of nature. Published benchmark work such as the Recurly churn rate benchmarks shows consumer subscriptions churning far faster than B2B software, and the Zuora Subscription Economy Index tracks how differently subscription sectors behave. A media or box subscription at 6% monthly churn may be ordinary for its sector while still triggering this tool’s warning; the warning means “acquisition has to sprint to stand still”, which is true at 6% in any sector. Expansion MRR is the quiet lever in the quick ratio: Bessemer’s Scaling to $100 Million makes the same point at company scale, since expansion comes from customers you have already paid to acquire.
What counts as MRR (and what does not)
MRR is recurring revenue only. Count active subscriptions at their actual recurring price, annual plans divided by 12, and recurring add-ons.
Exclude one-time setup fees, hardware, professional services, taxes, refunds, and failed payments that are no longer collectible. Discounted plans count at the discounted price while the discount lasts. Mixing one-time revenue into MRR is the most common way founders fool themselves about growth, because it makes a lumpy month look like a higher base. Two gaps in this tool belong in the same honest list: there is no contraction line for downgrades (the waterfall jumps from expansion straight to churned), and the projection holds price constant, so a planned price rise has to be modelled by running the tool twice. Month-level pacing of the sales effort behind the new-subscriber line is a separate question, covered by the monthly sales pace calculator.
What competing calculators miss
Each rival for this keyword does one of the three views well and drops the other two:
- SpotSaaS MRR Calculator: clean subscribers × ARPU math with genuinely useful multi-tier worked examples, but no churn adjustment, no waterfall and no projection. Its answer for the worked example here would be $50,000, the flattering number.
- EpicCalculators MRR Calculator: a real waterfall with quick ratio, and it takes new and churned MRR as dollars directly, which suits teams that already track MRR movements. Gap: no churn-adjusted headline and no month-by-month decay table, and its growth rate divides by beginning MRR, so its percentages run slightly higher than this tool’s for the same business.
- BraveCalculator’s MRR Calculator: customers × ARPU with a solid explainer, and nothing else: no churn input anywhere, so a high-churn business gets the same answer as a sticky one.
- CalculatorFreeTools SaaS Metrics Calculator: the widest rival: MRR plus LTV, CAC, NRR and churn in one suite. The breadth costs depth: no projection table, no churn-adjusted headline, and the surrounding metrics need inputs (gross margin, marketing spend) that a quick revenue check should not demand.
- Tractor Ventures MRR Forecast: a genuine multi-tier forecast, rare in this SERP, let down by careless arithmetic in its own example (it prints “$75,000 x $45,000 = $120,000” where the tiers should be added). A forecast you cannot trust in the example is hard to trust with your numbers.
- The gap this page fills: the churn-adjusted headline with ARR, the full waterfall with benchmark bands, and a visible 1 to 60 month decay table on one page, with its own definition choices (growth denominator, no contraction line, average-price waterfall) stated instead of buried.
Frequently asked questions
Monthly recurring revenue: the predictable subscription income you expect each month. The standard formula is active subscribers times average price. This tool’s headline adjusts that for churn, subscribers times (1 minus the churn rate) times price, and it shows the before-churn figure alongside for comparison.
Multiply subscribers × (1 − churn rate) × price. With 2,000 subscribers, 5% churn and a $25 price, that is 2,000 × 0.95 × $25 = $47,500.00, against $50,000.00 before churn.
ARR is annualized recurring revenue: MRR × 12. It is the same revenue viewed per year instead of per month. Here ARR is built from the churn-adjusted MRR, so $47,500.00 of MRR gives $570,000.00 of ARR.
New MRR plus expansion MRR minus churned MRR. Positive means the business grew that month; negative means churn outran acquisition and expansion combined. In the worked example it is $2,500 + $500 − $1,200 = $1,800.00.
The tool multiplies the new subscriber count by your average price: 100 new subscribers at a $25 average price is $2,500 of new MRR. If your new customers actually pay more or less than your average, that line is an estimate; teams with strict tier pricing should sanity-check it against their billing reports.
Above 4 is excellent, 2 to 4 is good, and below 2 is concerning, where the ratio is (new MRR + expansion MRR) divided by churned MRR. Note the boundary this tool uses: a ratio of exactly 4.00 is classed as good, because excellent starts above 4. The ratio only appears when churned MRR is above zero.
Below 5% is the healthy SaaS convention this tool benchmarks against: a rate above 5% triggers its warning, while 5% or below does not. Sector matters, though: consumer subscriptions commonly churn faster than B2B software, so treat 5% as a planning line, not a verdict on your business.
No. Setup fees, hardware, professional services, taxes and refunds are excluded; only recurring subscription revenue counts. Annual plans do count, at one twelfth of the annual price per month.
By design. The projection is a pure retention view: it shows what the current subscriber base earns if you add nobody, month by month for up to 60 months. This month’s acquisition, expansion and churn movements are scored separately in the waterfall, so the two effects never blur together.
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References
- Recurly. Churn Rate Benchmarks. Accessed October 22, 2026.
- Zuora. Subscription Economy Index. Accessed October 22, 2026.
- Stripe. Stripe Billing Documentation. Accessed October 22, 2026.
- Stripe. Stripe Revenue Recognition Documentation. Accessed October 22, 2026.
- Financial Accounting Standards Board. Revenue Recognition Project. Accessed October 22, 2026.
- Financial Accounting Standards Board. Accounting Standards Codification: Topic 606, Revenue from Contracts with Customers (ASU 2014-09). Accessed October 22, 2026.
- Bessemer Venture Partners. Scaling to $100 Million. Accessed October 22, 2026.
- Baremetrics. Open Benchmarks. Accessed October 22, 2026.
- U.S. Small Business Administration. Manage Your Business: Manage Your Finances. Accessed October 22, 2026.
- U.S. Small Business Administration. Plan Your Business: Fund Your Business. Accessed October 22, 2026.