Subscription Revenue Calculator

Calculate MRR, ARR, LTV, and churn impact for subscription-based businesses.

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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 Lifetime20.0 months

Churn Impact

Monthly Churned Subscribers50
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 growth1,000 subs | $330.6K ARR
10% monthly growth1,796 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

Our Subscription Revenue Calculator helps your business understand its financial health by projecting key metrics like Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), and Customer Lifetime Value (LTV). By 2026, understanding these metrics will be crucial for strategic planning and investor relations, especially as the subscription economy is projected to reach over $1 trillion. This tool also quantifies the impact of churn, a critical factor in sustainable growth.

The calculator uses your average subscription price, number of new customers, and churn rate to project MRR (Avg. Price x Active Subscribers), ARR (MRR x 12), and LTV (Avg. Revenue Per Customer / Customer Churn Rate). It also allows you to model the impact of varying churn rates on your overall revenue projections.

When using the calculator, ensure your churn rate is accurately calculated based on a consistent period (e.g., monthly). A common mistake is to underestimate churn, leading to overly optimistic revenue projections. Remember that LTV is an estimate and can be significantly impacted by changes in pricing or customer behavior.

Example: 2026 SaaS Startup Growth

  1. 1 Input: Average Monthly Subscription Price (USD): $50. Number of New Customers per Month: 100. Monthly Customer Churn Rate: 5%.
  2. 2 Calculate: MRR = $50 * (100 new customers - 5% churn from previous month's subscribers). ARR = MRR * 12. LTV = $50 / 0.05 (monthly churn).
  3. 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. 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?
A monthly churn rate below 5% is considered good for B2C subscriptions. B2B SaaS companies target under 2% monthly churn. Even small churn improvements compound significantly over a year.
How do you calculate customer lifetime value for subscriptions?
LTV equals average revenue per user (ARPU) divided by the monthly churn rate. For example, $50 ARPU with 5% monthly churn gives an LTV of $1,000 per customer.
What is the difference between gross churn and net churn?
Gross churn counts only lost revenue from cancellations. Net churn subtracts expansion revenue (upgrades, add-ons) from losses. You can have positive gross churn but negative net churn if expansions exceed cancellations.