MRR / ARR Forecast Calculator 2026
Project your Monthly Recurring Revenue and Annual Recurring Revenue growth over up to 24 months. Enter your starting MRR, expected new bookings, expansion rate, and churn rate to see month-by-month MRR, year-end ARR figures and net new MRR trends — essential inputs for board decks, fundraising models and OKR planning.
Key Inputs
- Starting MRR (£)
- New MRR per month from new logo bookings (£)
- Monthly expansion rate % (upsells, seat growth, add-ons)
- Monthly gross churn rate % (revenue lost from cancellations and downgrades)
- Projection period in months (1–24)
What You'll Get
- Month-by-month MRR table (MRR = prior MRR × (1 + expansion − churn) + new MRR)
- ARR at end of each calendar year (MRR × 12)
- Net new MRR per month (new + expansion − churned)
- Cumulative revenue over the projection period
Important Notes & Benchmarks
SaaS benchmark: T2D3 growth (triple/triple/double/double/double ARR across years 1–5) is used by top-tier VCs to evaluate early-stage trajectory. Healthy monthly churn rates: 2–5%/month for SMB SaaS, 0.5–1%/month for mid-market, 0.2–0.5%/month for enterprise. Net negative churn (expansion > churn) allows ARR to grow even without new logo acquisition. MRR formula used: MRR_n = MRR_(n−1) × (1 + expansion_rate − churn_rate) + new_MRR.
Frequently Asked Questions
What is a healthy monthly churn rate for SaaS?
0.5–2% monthly churn is acceptable for SMB SaaS, equating to 6–22% annual churn. Enterprise SaaS should target 0.2–0.5% monthly (roughly 2–6% annually). Best-in-class SaaS achieves net negative churn — where expansion revenue from existing customers exceeds revenue lost to cancellations — so the installed base grows even with zero new logo acquisition.
What is T2D3?
T2D3 is a SaaS growth benchmark coined by Neeraj Agrawal of Battery Ventures: triple ARR in year 1, triple again in year 2, then double in years 3, 4 and 5. It describes the trajectory of top-quartile SaaS companies that have reached $2M ARR and are targeting $100M+ ARR within 5 years. It is commonly used by top-tier VCs to evaluate whether a growth-stage SaaS company is on track for a premium valuation.
What is the difference between MRR and ARR?
MRR (Monthly Recurring Revenue) is the normalised monthly revenue from all active subscriptions. ARR (Annual Recurring Revenue) is MRR × 12 — it is used for annual normalisation and benchmarking across companies with different billing intervals (monthly vs annual). ARR is the most common SaaS valuation metric. Note: ARR calculated as MRR × 12 assumes steady-state MRR at a point in time, not a sum of trailing 12 months' actual revenue.
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