Max MRR Calculator
Calculate your SaaS revenue ceiling and predict when growth will plateau. Based on the concept by Jason Cohen, this tool shows you exactly where your revenue will top out given your current metrics.
š Based on the insightful article
"Max MRR: Your growth ceiling" by Jason CohenLearn why your SaaS will stop growing sooner than you think
Monthly recurring revenue from new customers, upgrades, and reactivations
Percentage of MRR lost each month from cancellations and downgrades
The Formula
When monthly cancellation dollars equal new MRR dollars, growth stops.
Your Max MRR
This is your revenue ceiling with current metrics
Key Insights
Growth Status
Concerning
Time to 90% of Max
~0 months
Monthly Churn at Max
$10,000
ā” Quick Tips
- ā¢ Aim for <3% monthly cancellation for sustainable growth
- ā¢ Focus on NRR ā„100% to break the ceiling
- ā¢ Max MRR is a leading indicator of growth problems
What different cancellation rates mean:
| Rate | Max MRR | Impact |
|---|---|---|
| 2% | $500,000 | š¢ Excellent |
| 3% | $333,333 | šµ Good |
| 5% | $200,000 | š” Risky |
| 7% | $142,857 | š“ Critical |
| 10% | $100,000 | š“ Critical |
Remember:
Small improvements in retention have massive impacts on your ceiling. Reducing churn from 7% to 4% nearly doubles your Max MRR!
This metric predicts when growth will slow, often months or years before it actually happens.
About Max MRR
Max MRR is a predictive metric that shows your revenue ceiling based on your current new MRR and cancellation rate. It reveals when your company will stop growing, often months or years before it actually happens.
Key concepts:
- Revenue Ceiling: The point where monthly churn equals new revenue
- Growth Deceleration: Growth slows as you approach Max MRR
- Leading Indicator: Changes in Max MRR predict future revenue trends
- Churn Impact: Small improvements in retention dramatically increase Max MRR
- NRR Break: Net Revenue Retention ā„100% breaks the ceiling entirely
Benchmarks: SaaS companies should target <3% monthly churn for sustainable growth. Public SaaS companies average 119% NRR, eliminating the Max MRR constraint.
Want to dive deeper into the math and see real-world examples?
Read the full article: "Max MRR: Your growth ceiling" āIncludes Buffer case study, Quick Ratio comparison, and NRR insights