Saas Maximum MRR Calculator

An interesting fact about Saas churn rate is that it can be used to predict the maximum size your business can reach.

Eventually in every Saas, the amount of revenue you lose to churn catches up to revenue earned from new customers. That’s when growth stalls.

If you know your ARPU, net churn rate, and number of new customers per month, you can calculate not only your maximum size but also how close you are to the top.

btw, If you have negative churn this formula doesn’t work anymore and you need something more complex. Here is an excellent article on how to deal with negative churn