MRR, ARR & Churn Calculator
Project recurring revenue with churn and expansion, and find your net revenue retention and average customer lifetime.
Your details
Movement
Upgrades and seat growth from customers you already have
This calculator runs entirely on your device. Nothing you enter is uploaded, stored, or sold. How this works
MRR after 24 months
$97,430
$1,169,162 ARR, up from $432,000 today
Includes your inputs, the full breakdown, and every row of the table.
Current MRR
$36,000
Current ARR
$432,000
Net revenue retention
98.5%
Average customer lifetime
33.3 months
Lifetime value per customer
$3,000
- Customers
- 400
- Average revenue per customer
- $90.00/mo
- Starting MRR
- $36,000
- Lost to churn each month
- - $1,080
- Gained from expansion
- + $540
- Gained from new customers
- + $3,600
- Net monthly change
- $3,060
| Month | Customers | MRR | ARR | Churned |
|---|---|---|---|---|
| Month 1 | 428 | $39,044 | $468,526 | - 12 |
| Month 2 | 455 | $42,041 | $504,487 | - 13 |
| Month 3 | 482 | $44,991 | $539,893 | - 14 |
| Month 4 | 507 | $47,896 | $574,751 | - 14 |
| Month 5 | 532 | $50,756 | $609,071 | - 15 |
| Month 6 | 556 | $53,572 | $642,861 | - 16 |
| Month 7 | 579 | $56,344 | $676,129 | - 17 |
| Month 8 | 602 | $59,074 | $708,883 | - 17 |
What this means
- A 3.0% monthly churn rate compounds to roughly 31% a year — you replace about 31% of your customer base annually just to stand still.
- At 40 new customers a month against 3.0% churn, growth stalls at about 1,333 customers unless acquisition rises or churn falls.
- Net revenue retention below 100% means you are refilling a leaking bucket. Reducing churn is almost always cheaper than increasing acquisition.
How the mrr, arr & churn calculation works
Recurring revenue businesses live and die by the interaction between three flows: new customers coming in, existing customers spending more, and customers leaving. Monthly recurring revenue captures the current state, but it tells you nothing about direction. Net revenue retention does, because it isolates what happens to the customers you already have — if that number exceeds one hundred percent, the base grows on its own and new sales are pure acceleration rather than replacement.
The most under-appreciated consequence of churn is the ceiling it imposes. If you add a fixed number of customers each month and lose a fixed percentage, the two forces eventually balance and growth stops regardless of how good your marketing is. That plateau sits at your monthly additions divided by your churn rate, and it is why mature companies obsess over retention rather than acquisition: halving churn doubles the ceiling, while doubling acquisition only doubles the rate of approach to it.
Frequently asked questions
What counts as good churn?
It depends entirely on who you sell to. Small business software commonly sees three to five percent monthly, which is tolerable because acquisition is cheap and fast. Enterprise contracts should be well under one percent monthly, because each customer costs a great deal to win. The signal that matters is the trend rather than the absolute figure.
How can net revenue retention exceed 100%?
When existing customers expand — adding seats, upgrading tiers, using more of a metered product — by more than departing customers take away. It is the strongest single indicator in a subscription business, because it means revenue compounds without any sales effort. The best products reach 120% or higher.
Why does small monthly churn look so large annually?
Because it compounds against a shrinking base. Three percent a month is not thirty-six percent a year; it is about thirty percent, since each month's loss applies to what remains. Even so, it means replacing nearly a third of your customers every year purely to stay level.
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Disclaimer. This calculator is provided for general information and educational purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Results are estimates based on the inputs you provide and the assumptions described above. Confirm any figure with a qualified professional before acting on it.