Key subscription metrics
MRR = Σ (Customers × Monthly price)
ARR = MRR × 12
ARPU = MRR ÷ Customers
Lifetime value ≈ ARPU ÷ Monthly churn
ARR = MRR × 12
ARPU = MRR ÷ Customers
Lifetime value ≈ ARPU ÷ Monthly churn
Example
100 customers at $29 plus 40 at $79 is $6,060 MRR ($72,720 ARR). ARPU is $43.29.
Growing MRR
- Cut churn. Small drops in churn compound fast.
- Move customers up a tier. It raises ARPU without new acquisition.
- Bill annual plans monthly-equivalent. Count an annual plan as its price ÷ 12.
Frequently asked questions
Should annual plans count toward MRR?
Yes, as the annual price divided by 12.
Is lifetime value here revenue or profit?
Revenue. Multiply by your gross margin for gross-profit LTV.
What's a normal churn rate?
It varies widely by market and price. Track your own trend rather than chasing a benchmark.
Results are estimates for planning and are not financial, tax or legal advice. See our methodology.