SaaS Pricing & MRR Calculator

This calculator models the core metrics of a subscription or SaaS business, monthly and annual recurring revenue, average customer lifetime, and customer lifetime value, from a few simple inputs, so founders and operators can see how pricing and churn drive the business. Subscription businesses run on different maths from one-off sales. What matters is recurring revenue and how long customers stay, and the silent killer is churn, the rate at which customers cancel each month. A small change in churn has an outsized effect, because it determines how long the average customer keeps paying and therefore how much each one is ultimately worth. This tool makes those relationships visible. You enter your monthly price per customer, your current number of customers, your monthly churn rate, and your gross margin, and the calculator returns your monthly recurring revenue, your annual recurring revenue, the average customer lifetime in months implied by your churn, and the lifetime value of a customer. Seeing these together is powerful: it shows that cutting churn from, say, 5 percent to 3 percent can lift the average customer lifetime and lifetime value dramatically, often more than raising prices would. Use it to set or test pricing, to model the impact of reducing churn or improving retention, to value recurring revenue when raising capital, and to work out how much you can afford to spend acquiring a customer against their lifetime value. Be honest about churn, as it is the figure that most shapes the outcome and the one founders most often underestimate. This is a planning model; real subscription dynamics include expansion, downgrades and cohort effects, so refine it with your actual data.

Average lifetime is 1 divided by the monthly churn rate. LTV uses your gross margin. Ignores expansion and downgrades. A planning model.