MRR and churn calculator
The three numbers every buyer asks for, from figures you already have: MRR and ARR from your customers and prices, churn and what it means for customer lifetime, and net new MRR from a month's movements. No sign-up.
MRR and ARR
Paying customers times what they pay, with yearly plans converted to a monthly amount.
Churn, lifetime and LTV
What you lost in a month, as a share of what you started with, and what that implies.
Net new MRR and growth
The month's movements added up, and the growth rate they make.
How do you calculate MRR?
Add up every active paying subscription at its monthly amount. Monthly plans count at their price, yearly plans at price ÷ 12, quarterly at price ÷ 3. Leave out trials, one-off payments, setup fees, taxes and anything already cancelled. Discounts that recur come off; a one-time coupon does not.
ARR is MRR × 12. It is the figure multiples are quoted against when a SaaS is sold. The full rules, with the edge cases, are in What is MRR?
How do you calculate churn rate?
Customer churn is the customers who cancelled during the month divided by the customers you had at its start. Revenue churn does the same with MRR, so it also counts downgrades, and it is the figure a buyer cares about more: losing ten customers on the cheapest plan is not the same as losing one on the biggest.
Average customer lifetime is 1 ÷ monthly churn, and lifetime value is that lifetime times what the average customer pays per month. Both assume churn stays where it is, which it rarely does for long, so treat them as rough. More in What is churn rate?
What is net new MRR?
Net new MRR = new MRR + expansion MRR − contraction MRR − churned MRR. It is the month's change in MRR broken into its parts, and it tells you whether growth is coming from new customers or from existing ones paying more. Divided by the MRR you started with, it is your monthly growth rate.
How do I prove these numbers to a buyer?
A spreadsheet is a claim. On VerifyArr the same figures are read from your Stripe or RevenueCat account through a read-only key, recomputed every hour and shown on a public page with a verified badge, whether or not the startup is for sale. See how listing works.
Frequently asked questions
What is the formula for MRR?
MRR is the sum of every active paying subscription, each converted to a monthly amount: a $20 monthly plan adds $20, a $240 yearly plan adds $240 ÷ 12 = $20. With one monthly price it is simply paying customers × monthly price. Trials, one-off payments and cancelled subscriptions do not count.
What is the formula for churn rate?
Customer churn is customers lost in the period ÷ customers at the start of the period. Revenue churn is MRR lost to cancellations and downgrades ÷ MRR at the start. Both are usually quoted per month.
What is a good monthly churn rate for a SaaS?
There is no single benchmark; it depends on the price point and who you sell to. Buyers in the small software market generally read under 2% a month as low, 2% to 5% as moderate and normal for self-serve products, 5% to 10% as high and over 10% as severe.
How is customer lifetime calculated from churn?
Average customer lifetime in months is 1 ÷ monthly churn rate. At 4% monthly churn the average customer stays 25 months. Lifetime value is that lifetime multiplied by the average revenue per customer per month.
Does VerifyArr compute these from my Stripe account?
Yes. Connect Stripe, or RevenueCat for App Store and Google Play apps, with a read-only key and VerifyArr reads the subscriptions and computes MRR, 30-day growth, churn and the customer count every hour, then shows them on a public startup page with a verified badge.