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SaaS MRR, ARR & Churn Calculator

Calculate SaaS Monthly Recurring Revenue, Annual Recurring Revenue, churn rate, and net revenue retention. Essential metrics for any subscription business.

SaaS Metrics Calculator

MRR

ARR

Churn Rate

Net Revenue Retention

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SaaS Metrics: MRR, ARR, Churn, and NRR Explained

Subscription businesses live and die by a handful of key metrics. Understanding and optimizing these numbers is the difference between sustainable growth and a leaky bucket that requires constant new customer acquisition to survive.

Core SaaS Metric Formulas

  • MRR = Active Subscribers × ARPU — the most important SaaS metric
  • ARR = MRR × 12 — annualized view of recurring revenue
  • Monthly Churn Rate = Churned Customers / Total Customers × 100
  • Net Revenue Retention (NRR) = (MRR − Churned MRR + Expansion MRR) / Starting MRR × 100
  • Customer LTV = ARPU / Monthly Churn Rate

Why NRR Above 100% Is the Holy Grail

NRR (also called Net Dollar Retention) above 100% means your existing customer base grows in revenue even without acquiring new customers — expansions and upgrades more than offset churned revenue. Slack, Snowflake, and Twilio famously had NRRs of 130%+ at their growth peaks. Benchmark: >120% = excellent, 100–120% = healthy, <100% = churn problem.

The Rule of 40

A healthy SaaS business should have a Revenue Growth Rate % + Profit Margin % ≥ 40. A company growing at 50% with -15% margin scores 35 (borderline). A company growing at 20% with 25% margin scores 45 (healthy). This balances growth vs. profitability — it's the most commonly cited SaaS health benchmark by VCs.

Frequently Asked Questions