How do you forecast SaaS revenue?

SaaS revenue forecasting starts with current MRR, then models growth rate (new customer acquisition) and churn rate (customer losses) month over month. The formula: Next month MRR = Current MRR × (1 + growth rate) × (1 - churn rate).

What is the difference between MRR and ARR?

MRR (Monthly Recurring Revenue) is your total recurring revenue per month. ARR (Annual Recurring Revenue) is MRR × 12. Investors typically use ARR for companies above $1M in recurring revenue and MRR for earlier-stage startups.

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Revenue Forecast

Project your MRR and ARR over the next 24 months — with growth and churn factored in.

Revenue Forecast

Model your MRR and ARR growth over 24 months

Current MRR ($)Monthly Growth Rate (%)Monthly Churn Rate (%)

MRR Projection

Monthly recurring revenue over 24 months

ARR Projection

Quarterly annualized recurring revenue

Monthly Growth Breakdown

New MRR vs churned MRR each month

Key Milestones

When you hit key ARR targets

$1M ARR

Reached in Nov 26 (month 8)

Nov 26

$5M ARR

Not reached within 24 months

Net Growth Rate

7.0% monthly net growth

+7.0%

MRR at 12mo

$112,610

ARR at 12mo

$1,351,320

MRR at 24mo

$253,619

ARR at 24mo

$3,043,428

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Frequently Asked Questions

How do you forecast SaaS revenue?: SaaS revenue forecasting starts with current MRR, then models growth rate (new customer acquisition) and churn rate (customer losses) month over month. The formula: Next month MRR = Current MRR × (1 + growth rate) × (1 - churn rate).
What is the difference between MRR and ARR?: MRR (Monthly Recurring Revenue) is your total recurring revenue per month. ARR (Annual Recurring Revenue) is MRR × 12. Investors typically use ARR for companies above $1M in recurring revenue and MRR for earlier-stage startups.

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