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.

Max MRR Calculator

Calculate your SaaS revenue ceiling and see when growth may plateau using Jason Cohen's Max MRR concept.

Based on the insightful article

"Max MRR: Your growth ceiling" by Jason Cohen

New MRR per Month ($)

Including upgrades and reactivations

Monthly Cancellation Rate (%)

Percentage lost from cancellations and downgrades

The Formula

Max MRR = New MRR ÷ Cancellation Rate

When monthly cancellation dollars equal new MRR dollars, growth stops.

Your Max MRR

This is your revenue ceiling with current metrics

Growth Status

Concerning

Time to 90% of Max

~0 months

Monthly Churn at Max

$10,000

What Different Cancellation Rates Mean

Rate	Max MRR	Impact
2%	$500,000	Excellent
3%	$333,333	Good
5%	$200,000	Risky
7%	$142,857	Critical
10%	$100,000	Critical

Quick Tips

• Aim for <3% monthly cancellation for sustainable growth
• Focus on NRR ≥100% to break the ceiling
• Small improvements in retention have massive impacts on your ceiling

How to use this model

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

Lower churn increases the ceiling dramatically
Expansion revenue offsets cancellations
Track churn changes each month to see the impact

FAQ

Short, practical answers to common questions.