Subscription Revenue Calculator

Calculate MRR, ARR, LTV, and churn impact for subscription-based businesses.

By Konstantin Iakovlev · Updated September 2026 · Source: SBA — Business Guide

%
$
$
%

MRR

$27.6K

ARR

$330.6K

LTV

$551.00

Revenue Breakdown

Monthly Subscribers (700)$20,300.00
Annual Subscribers (300)$7,250.00
Total MRR$27,550.00
ARR$330,600.00
ARPU$27.55
Avg Customer Lifetime20.0 months

Churn Impact

Monthly Churned Subscribers50
Monthly Revenue Lost to Churn$1,377.50
Annual Revenue Lost to Churn$16,530.00

12-Month Growth Scenarios

No growth (churn only)540 subs | $178.5K ARR
5% monthly growth1,000 subs | $330.6K ARR
10% monthly growth1,796 subs | $593.8K ARR

Use the Subscription Revenue Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Projecting where a subscription business is headed starts with three numbers: Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), and Customer Lifetime Value (LTV). This calculator builds all three and layers in the drag of churn, which quietly determines whether growth holds. These figures carry real weight in both strategic planning and investor conversations.

From your total subscribers, the share on annual plans, the monthly and annual prices, and the monthly churn rate, the model derives MRR (monthly-plan subscribers x monthly price, plus annual-plan subscribers x annual price / 12), ARR (MRR x 12), ARPU (MRR / subscribers) and LTV (ARPU / monthly churn rate). It also shows the subscribers and revenue churn takes each month and a 12-month projection with no growth, 5% and 10% monthly growth, so you can dial churn up or down and watch the outlook change.

Churn deserves careful handling: calculate it over a consistent window, monthly for instance, so the rest of the math stays honest. Underestimating it is the classic trap, producing projections that look better than reality will allow. And because LTV is an estimate, shifts in pricing or customer behavior can move it substantially, so revisit it whenever those change.

Example: A 1,000-Subscriber SaaS Product

  1. 1 Input: 1,000 subscribers, 30% of them on the annual plan; monthly price $29, annual price $290; monthly churn 5%.
  2. 2 MRR: 700 monthly subscribers × $29 = $20,300, plus 300 annual subscribers × $290 / 12 = $7,250, for $27,550. ARR: $27,550 × 12 = $330,600. ARPU: $27,550 / 1,000 = $27.55.
  3. 3 LTV: $27.55 / 0.05 = $551 over an average lifetime of 20 months. Churn takes 50 subscribers a month, $1,377.50 of MRR, or $16,530 a year.
  4. 4 Context: with no new sign-ups, 5% monthly churn leaves 540 subscribers after 12 months (0.95^12 ≈ 54% retained, so about 46% lost). Growing 5% a month only holds the base at 1,000; at 10% it reaches 1,796 subscribers and $593.8K ARR.

Source: SBA — Business Guide · Last updated: September 2026

Frequently Asked Questions

What is a good monthly churn rate for a subscription business?
A monthly churn rate below 5% is considered good for B2C subscriptions. B2B SaaS companies target under 2% monthly churn. Even small churn improvements compound significantly over a year.
How do you calculate customer lifetime value for subscriptions?
LTV equals average revenue per user (ARPU) divided by the monthly churn rate. For example, $50 ARPU with 5% monthly churn gives an LTV of $1,000 per customer.
What is the difference between gross churn and net churn?
Gross churn counts only lost revenue from cancellations. Net churn subtracts expansion revenue (upgrades, add-ons) from losses. You can have positive gross churn but negative net churn if expansions exceed cancellations.