MRR & ARR Calculator for SaaS and Startups 2026
This MRR & ARR calculator shows the real recurring revenue health of your SaaS or subscription business in 2026. Enter your paying customers, average revenue per user (ARPU), monthly churn and growth rate; the tool computes current MRR, ARR, net MRR after churn, customer lifetime value (LTV = ARPU/churn), CAC payback and a 12-month MRR projection. Healthy SaaS benchmarks 2026: monthly churn under 2%, net revenue retention above 110%, LTV:CAC ratio above 3:1. Example: 500 customers at EUR 49 ARPU with 3% churn and 8% new-customer growth produces EUR 24,500 MRR / EUR 294,000 ARR today and projects to EUR 41,000 MRR in 12 months if churn is contained. Last updated June 2026.
MRR and ARR explained for European SaaS founders — how to calculate them, why they matter, and how investors in 2026 value SaaS at 5–8× ARR.
How to use this calculator
- 01Enter the number of paying customers.
- 02Enter the average revenue per user (ARPU) per month.
- 03Set monthly churn rate and new-customer growth rate.
- 04Adjust the share of annual plans for working capital benefit.
- 05Read MRR, ARR, LTV and the 12-month projection chart.
- •Healthy SaaS churn: < 2% per month (annual < 22%).
- •Great net revenue retention: > 110%.
- •LTV:CAC ratio should be > 3:1 for a fundable SaaS.
- •CAC payback under 12 months is the gold standard.
- •Annual plans improve cash flow by 20–30% but mask churn.
Frequently asked questions
What is the difference between MRR and ARR?
MRR is monthly recurring revenue. ARR is MRR × 12 — your normalised annual run-rate. Investors talk about ARR; founders manage MRR.
What is a good churn rate for SaaS?
B2B SaaS: < 1%/month is excellent, < 2% is healthy, > 5% is critical. B2C: 5–7% is normal — focus on engagement instead of zero churn.
How is LTV calculated?
Simple LTV = ARPU ÷ monthly churn. Better LTV = gross-margin × ARPU ÷ churn. The tool uses the simple version to keep inputs manageable.
What is the LTV:CAC ratio benchmark?
Investors want > 3:1. Under 1:1 you are losing money on each customer; over 5:1 you may be underinvesting in growth.
How do annual plans affect the numbers?
Annual plans collect 12 months upfront — great for working capital and reduces visible churn — but mask the true monthly churn signal. Track both.
Related calculators
Estimate monthly payments, total interest and amortization for European mortgages.
Project the future value of investments with compounding and recurring contributions.
Calculate monthly payments, total interest and full amortization schedule for any loan.