MRR & Churn Calculator

See where a subscription business is heading from its customers, price and churn.

Updated November 9, 2026. Runs in your browser; nothing you type is stored.

Why churn decides how big you can grow

Monthly recurring revenue (MRR) is the predictable income a subscription, membership or retainer business earns each month. Growing it depends on two numbers: how many customers you add and how many you lose. Churn matters more than most people expect. Because you lose a percentage of customers every month, the bigger you get, the more you lose, until new sign-ups only replace the people leaving.

That leveling-off point is shown as "where customers level off". If it is lower than you hoped, reducing churn is often a faster route to growth than finding more new customers.

The formula

MRR = customers × average price
Customers next month = customers × (1 − churn) + new customers
Lifetime value = average price ÷ monthly churn
Level-off point = new customers per month ÷ monthly churn

Worked example

You have 200 customers paying $20 a month, so MRR is $4,000. At 5% churn you lose 10 customers ($200 of MRR) a month while adding 15, a net gain of 5. After 12 months you would have about 246 customers and $4,920 MRR. Each customer is worth $20 ÷ 0.05 = $400 over their lifetime, and growth slows as you approach 15 ÷ 0.05 = 300 customers.

Ways to reduce churn

• Find out why people leave. A one-question cancellation survey gives you the list to fix.
• Make the first month great. Most cancellations happen early.
• Offer annual plans with a discount; they lock in customers for longer.
• Catch failed payments. Expired cards cause a surprising share of "churn".

Frequently asked questions