LLM Economics

MRR & ARR Calculator

Calculate monthly and annual recurring revenue, project 12-month MRR under your churn, and see the ARR impact of reducing churn.

Inputs

Current MRR
$20,000.00/mo
Launch a churn-reduction program
Cutting monthly churn by 2 percentage points would lift projected ARR in 12 months by $65,994.49.
$65,994.49
saved / year (16.7%)
Current ARR
$240,000.00/yr
Projected MRR (12mo)
$32,869.92/mo
Projected ARR (12mo)
$394,439.01/yr
Monthly churn
5.0%

Cost breakdown

ItemMonthlyYearly
MRR$20,000.00$240,000.00
Projected (12mo)$32,869.92$394,439.01

Comparison

OptionMonthlyYearly
Current churn (5.0%)current$32,869.92$394,439.01
Improved churn (3.0%)cheapest$38,369.46$460,433.50

Data updated 2026-06-30 · ChartMogul SaaS Benchmarks chartmogul.com/reports/saas-benchmarks/ · Bessemer Cloud Index www.bvp.com/atlas/state-of-the-cloud · David Skok LTV:CAC standard www.forentrepreneurs.com/saas-metrics/

Industry Benchmark

Your churn vs. SaaS medianIndustry avg: 5 % monthly
You are at the 50th percentile

Data updated 2026-06-30 · ChartMogul SaaS Benchmarks chartmogul.com/reports/saas-benchmarks/ · Bessemer Cloud Index www.bvp.com/atlas/state-of-the-cloud · David Skok LTV:CAC standard www.forentrepreneurs.com/saas-metrics/

Trends & comparison

Trend

Comparison (monthly vs. yearly)

How to use this calculator

Enter subscribers, ARPU, monthly churn and new subscribers per month. The result shows current MRR/ARR and a 12-month projection, plus the ARR you'd gain by cutting churn.

Why churn dominates SaaS growth

Because churn compounds, retention improvements often beat acquisition spend on ROI. The scenario comparison makes the trade-off explicit.

Sources

Benchmark medians are sourced from public SaaS industry reports including ChartMogul and OpenView, versioned in the platform configuration.

Frequently asked questions

How is MRR calculated?

MRR = active subscribers × ARPU. ARR = MRR × 12. The 12-month projection compounds new subscribers minus churn each month.

How does churn affect ARR?

Churn compounds monthly, so even a 2-point reduction can add significant ARR over a year — the calculator shows the exact delta.

What is a healthy churn rate?

B2B SaaS medians sit near 5% monthly for SMB and far lower for enterprise. The benchmark bar compares yours to the median.

Related calculators

MRR Calculator — Monthly & Annual Recurring Revenue | LLM Economics