MRR Growth Ceiling Calculator

What is the MRR growth ceiling?

The MRR growth ceiling is the hypothetical Monthly Recurring Revenue (MRR) you can reach with your current business metrics. It's the maximum amount of money you can earn if nothing in your business changes

Three factors define your MRR growth ceiling:

  • the number of new (paid) signups each month
  • the average monthly revenue each (paid) user generates (ARPU)
  • your churn rate - the percentage of users who cancel their subscription each month

Given those numbers you can calculate the growth ceiling with the following formula:

[Number of new signups per month] * [ARPU] / [monthly churn rate]

For your convenience we have also provided an option where you can test how improvements to your business influence the MRR growth ceiling. What happens if you  increase the number of signups by 10%?

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