Subscription Revenue Calculator
Calculate MRR, ARR, LTV, and churn impact for subscription-based businesses.
By Konstantin Iakovlev · Updated April 2026 · Source: SBA — Business Guide
MRR
$27.6K
ARR
$330.6K
LTV
$551.00
Revenue Breakdown
| Monthly Subscribers (700) | $20,300.00 |
| Annual Subscribers (300) | $7,250.00 |
| Total MRR | $27,550.00 |
| ARR | $330,600.00 |
| ARPU | $27.55 |
| Avg Customer Lifetime | 20.0 months |
Churn Impact
| Monthly Churned Subscribers | 50 |
| Monthly Revenue Lost to Churn | $1,377.50 |
| Annual Revenue Lost to Churn | $16,530.00 |
12-Month Growth Scenarios
| No growth (churn only) | 540 subs | $178.5K ARR |
| 5% monthly growth | 1,000 subs | $330.6K ARR |
| 10% monthly growth | 1,796 subs | $593.8K ARR |
Use the Subscription Revenue Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Projecting where a subscription business is headed starts with three numbers: Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), and Customer Lifetime Value (LTV). This calculator builds all three and layers in the drag of churn, which quietly determines whether growth holds. As the subscription economy pushes past $1 trillion heading into 2026, these figures carry real weight in both strategic planning and investor conversations.
From your average subscription price, count of new customers, and churn rate, the model derives MRR (Avg. Price x Active Subscribers), ARR (MRR x 12), and LTV (Avg. Revenue Per Customer / Customer Churn Rate). You can also dial churn up or down to watch how different retention scenarios reshape the revenue outlook.
Churn deserves careful handling: calculate it over a consistent window, monthly for instance, so the rest of the math stays honest. Underestimating it is the classic trap, producing projections that look better than reality will allow. And because LTV is an estimate, shifts in pricing or customer behavior can move it substantially, so revisit it whenever those change.
Example: 2026 SaaS Startup Growth
- 1 Input: Average Monthly Subscription Price (USD): $50. Number of New Customers per Month: 100. Monthly Customer Churn Rate: 5%.
- 2 Calculate: MRR = $50 * (100 new customers - 5% churn from previous month's subscribers). ARR = MRR * 12. LTV = $50 / 0.05 (monthly churn).
- 3 Result: Assuming a steady state after initial growth, your estimated MRR would be approximately $95,000, leading to an ARR of $1,140,000. Your estimated Customer Lifetime Value (LTV) would be $1,000 per customer.
- 4 Context: These figures indicate a healthy recurring revenue stream and a strong LTV, which is attractive to investors. However, a 5% monthly churn means you lose 60% of your customers annually, highlighting the importance of retention efforts to further boost your 2026 revenue. Increasing new customers or decreasing churn will significantly improve these metrics.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
What is a good monthly churn rate for a subscription business?
How do you calculate customer lifetime value for subscriptions?
What is the difference between gross churn and net churn?
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