SaaS MRR Movement

Start simulating an MRR business

What Is This About?

Understanding Monthly Recurring Revenue (MRR) movements is crucial for SaaS businesses. This interactive tool demonstrates how different business parameters affect your revenue growth and churn patterns.

The Challenge: Growth vs Churn

• Growth is intuitive. Churn is not
• At churn = growth, business will stagnate
• At 5% monthly churn, growth peaks within 2 years
• At 7% monthly churn, growth peaks within 1 year

The Math

• 5% monthly churn = 60% annual churn
• You need to acquire 60%+ new customers annually just to stay flat
• This becomes increasingly difficult as you scale

Who Is This For?

This calculator is designed for:

• SaaS Founders & CEOs: Understanding how churn affects long-term growth and valuation
• Finance Teams: Modeling MRR movements and forecasting revenue
• Growth Marketers: Understanding the relationship between acquisition and retention
• Investors: Evaluating SaaS business sustainability and growth potential
• Anyone Building a SaaS Business: Wanting to understand the math behind recurring revenue

How to Do This Properly on Your Own

Understanding MRR Components

Has This Helped You?

If you found this MRR calculator useful for understanding SaaS revenue dynamics:

• Share it with your team or on social media
• Bookmark this page for future reference
• Write backlinks to this page when referencing MRR analysis

This calculator provides insights into:

• How churn affects long-term growth
• The relationship between growth and retention
• LTV calculations and customer lifetime value
• Real-world SaaS benchmarks

For Those Who Want to Do It Properly Themselves

Ready to build your own MRR calculator? The core logic involves:

1. Tracking MRR Components: New, expansion, contraction, churned MRR
2. Modeling Growth: Applying growth rates with volatility
3. Calculating Churn: Applying churn rates to existing user base
4. Deriving Metrics: LTV, ARR, customer longevity from base parameters

For implementation, you can reference the calculator component code and adapt it to your specific business model.