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How this calculator works
Each month: MRR = previous MRR × (1 − churn) + new MRR. New MRR grows by the monthly growth rate. ARR = MRR × 12.
Frequently asked questions
What is a good churn rate?
It depends on the customer: businesses selling to large companies often see very low monthly churn, while small-business and consumer products commonly churn several percent a month.
Why does growth slow down?
Churn is a percentage of a growing base. Eventually churned revenue each month catches up with new revenue unless new sales keep growing.
Results are estimates based on the numbers you enter and simplified assumptions. They are not financial advice. See our disclaimer.