The method
How it is worked out
- MRR
- Monthly recurring revenue
- ARPU
- MRR ÷ customers
- g
- Gross margin
- churn
- Monthly churn
See ARR, average revenue per customer, simplified lifetime value and monthly surplus from subscription business inputs. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Review several subscription-business measures together when preparing a monthly operating update. It combines recurring revenue, average revenue per customer, a simplified lifetime-value estimate and the cash difference between monthly recurring revenue and running costs.
Enter paying customers, monthly recurring revenue, monthly churn, gross margin and monthly running costs. ARR annualises MRR; ARPU divides MRR by customers; the simplified lifetime-value figure uses ARPU, gross margin and churn. Monthly surplus subtracts running costs from MRR. The tool does not calculate customer acquisition cost or an LTV:CAC ratio and does not replace cohort analysis.
Use a seed-stage SaaS example with 120 paying customers. Increase churn while holding MRR steady and examine how the estimated customer lifetime value changes; then adjust running costs to see the effect on monthly surplus. Review customer cohorts before trusting an average LTV.
Put it to work
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Early-stage SaaS teams preparing a monthly investor update, founders sanity-checking a pitch deck, and operators who want ARR, ARPU, lifetime value and surplus in one view.
Mistakes worth avoiding
Questions
See ARR, average revenue per customer, simplified lifetime value and monthly surplus from subscription business inputs.
Enter paying customers, monthly recurring revenue, monthly churn, gross margin and monthly running costs. ARR annualises MRR; ARPU divides MRR by customers; the simplified lifetime-value figure uses ARPU, gross margin and churn. Monthly surplus subtracts running costs from MRR. The tool does not calculate customer acquisition cost or an LTV:CAC ratio and does not replace cohort analysis.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Using a blended churn rate when enterprise and self-serve customers behave very differently. Reporting lifetime value from a few months of data. Forgetting that gross margin in SaaS must include hosting and support costs.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.