Calculate monthly and annual recurring revenue, net churn, growth rate, and customer lifetime value in one place.
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Monthly Recurring Revenue (MRR) is the predictable revenue a subscription business can expect every month from active customers. It's the core metric SaaS companies use to track growth, since it strips out one-time fees and focuses purely on recurring income.
Annual Recurring Revenue (ARR) is simply MRR multiplied by 12 — an annualised run rate. ARR is typically used for higher-level reporting and investor conversations, while MRR is the operational metric tracked month to month.
MRR doesn't move in a single direction. New MRR comes from new customers, expansion MRR comes from existing customers upgrading, contraction MRR comes from downgrades, and churned MRR comes from cancellations. Net new MRR is the sum of all four, and it explains exactly why MRR grew or shrank month over month.
Customer Lifetime Value (LTV) divided by Customer Acquisition Cost (CAC) shows whether a business earns enough from a customer to justify what it spent to acquire them. A ratio of 3:1 or higher is generally considered healthy; below that, the business may be spending too much to grow.
A common formula is LTV = Average Revenue Per Account ÷ Churn Rate. This estimates total revenue from an average customer over their expected lifetime, based on how long customers typically stay before churning.
For small and mid-sized B2B SaaS companies, monthly revenue churn under 1–2% is generally considered healthy. Consumer subscription products often tolerate higher churn given lower price points and higher volume.
Net revenue churn accounts for expansion revenue offsetting losses from cancellations and downgrades, giving a more complete picture of revenue health than simply counting how many customers left.