Max MRR calculator.

See the revenue ceiling where new MRR equals churn, and how many months until you get close.

Price
Free, no signup
Category
Calculators

Including upgrades and reactivations

Percentage lost from cancellations and downgrades

Max MRR calculatorResult

$200,000

Revenue ceiling

Concerning
Time to 90% of max
~47 months
Monthly churn at max
$10,000

What different cancellation rates mean

RateMax MRRImpact
2%$500,000Excellent
3%$333,333Good
5%$200,000Risky
7%$142,857Critical
10%$100,000Critical

Max MRR equals new MRR divided by the cancellation rate. When monthly cancellation dollars equal new MRR dollars, growth stops.

What max MRR is.

Max MRR is the revenue ceiling where monthly churn equals new revenue. It predicts when growth will stop, often months before it happens.

Growth slows as you approach that ceiling. A change in max MRR is an early signal of later revenue. Net revenue retention at or above 100 percent breaks the ceiling.

The model comes from Max MRR: Your growth ceiling by Jason Cohen.

How to use this model.

Use the ceiling to prioritize retention work and forecast when growth slows.

  • Lower churn raises the ceiling.
  • Expansion revenue offsets cancellations.
  • Track churn each month to see the impact.
  • Aim for under 3 percent monthly cancellation for steady growth.

Common questions.

What is Max MRR?
Max MRR is the revenue ceiling where new MRR equals churned MRR.
How can I increase Max MRR?
Reduce churn, increase expansion revenue, and improve retention.
What is a good churn rate?
Many SaaS teams target under three percent monthly churn for steady growth.
Does NRR above 100 percent change the model?
Yes. Strong expansion revenue can break the ceiling and push growth higher.

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