SaaS Metrics Calculator

Essential SaaS Metrics & Key Performance Indicators

Tracking key financial and operational metrics is essential for scaling a software-as-a-service (SaaS) business. Metrics such as Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Churn Rate, and Net Revenue Retention (NRR) evaluate financial health and growth momentum.

SaaS Revenue Formulas

MRR represents predictable subscription revenue generated each month:

$$\text{MRR}_{\text{Ending}} = \text{MRR}_{\text{Starting}} + \text{New MRR} + \text{Expansion MRR} - \text{Contraction MRR} - \text{Churned MRR}$$

$$\text{ARR} = \text{MRR}_{\text{Ending}} \cdot 12$$

Retention & Churn Metrics

Customer and revenue retention indicate product-market fit and customer satisfaction:

• Customer Churn Rate: $$\text{Churn \%} = \frac{\text{Customers Churned}}{\text{Starting Customers}} \cdot 100$$
• Net Revenue Retention (NRR): $$\text{NRR \%} = \frac{\text{Starting MRR} + \text{Expansion MRR} - \text{Contraction MRR} - \text{Churned MRR}}{\text{Starting MRR}} \cdot 100$$