How the formula works
MRR = paying customers × average revenue per user. ARR = MRR × 12. Estimated monthly churn dollars = MRR × churn%. Use it for planning conversations, not investor-grade cohort reporting.
Worked example
120 customers at $49 ARPU produce $5,880 MRR and $70,560 ARR. At 3% monthly churn, about $176 of MRR is at risk each month if you do not replace or expand accounts — a reminder to price retention work into the business, not only new logos.
FAQ
What is ARPU here?
Average revenue per user (or account) per month. If plans differ, use a blended average across paying customers.
Does this include expansion revenue?
No. It is a snapshot: customers × ARPU. Upsells and downgrades belong in a fuller SaaS dashboard.
How should I read the churn dollars line?
It multiplies MRR by your monthly churn percentage to show cash at risk if nothing else changes. It is not a cohort model.
MRR vs freelance retainers?
Same math. A few retainer clients with stable monthly fees are MRR for a solo practice — useful when you price packages.
Packaging monthly work? See retainer pricing.