Free Subscription Revenue Calculator
Calculate annual recurring revenue for subscription businesses accounting for churn. See how subscriber count, pricing, and churn rate impact revenue.
USD
%
Net Annual Revenue (after churn)
$313,200.00
Gross Annual Revenue (no churn)$348,000.00
Monthly Recurring Revenue$29,000.00
Revenue Lost to Churn$34,800.00
Net Annual Revenue (after churn) vs Monthly Price
How to Calculate Subscription Revenue
Formula
Net Annual Revenue = Subscribers x Monthly Price x 12 x (1 - Churn Rate/100)
Churn rate is the percentage of subscribers who cancel within a year. Reducing churn is one of the most powerful levers for growing subscription revenue.
Example Calculation
1,000 subscribers at $29/month with a 10% annual churn rate.
- 01MRR = 1,000 x $29 = $29,000
- 02Gross ARR = $29,000 x 12 = $348,000
- 03Revenue lost to churn = $348,000 x 10% = $34,800
- 04Net ARR = $348,000 - $34,800 = $313,200
Frequently Asked Questions
Learn More
How to Calculate Profit Margin
Learn how to calculate gross, operating, and net profit margins step by step. Understand what healthy margins look like across industries and how to improve yours.