SaaS Revenue Simulator
Will you survive the "Valley of Death"? Project your startup's MRR growth and see the impact of churn over the next 24 months.
*Churn kills SaaS. Keep this under 5% if possible.
Why MRR is the Holy Grail
Monthly Recurring Revenue (MRR) is the lifeblood of any subscription business. Unlike one-time sales, MRR compounds. If you add $1,000 in new MRR every month, by the end of the year, you aren't making $1,000—you're making $12,000/month.
The Silent Killer: Churn
Churn is the percentage of customers who cancel their subscription every month. It might seem small, but it compounds negatively against your growth.
Example: If you grow 10% month-over-month but have 10% churn, your business effectively stays flat. You are filling a leaky bucket. This simulator helps you visualize that ceiling.
Benchmarks for Success
- Seed Stage: Focus on getting to $10k MRR. Churn will be high (5-10%) as you figure out product-market fit.
- Growth Stage: Once you hit $50k MRR, your goal is to lower churn to < 3% and increase growth channels.
- Scale: At $1M ARR ($83k MRR), net negative churn (upsells exceeding cancellations) becomes the goal.