Reading your MRR forecast

The MRR view shows your recurring revenue month by month for the full 36-month forecast. It is the clearest picture of how your top line grows.

What you see

• MRR by plan tier — recurring revenue broken out by pricing plan, so you can see which tier drives growth.
• New customers — customers acquired each month from your funnel.
• Churned customers — customers lost each month based on your churn assumptions.
• Expansion revenue — extra revenue from upgrades and add-on modules.
• ARR — the annualized run-rate (MRR × 12).

The MRR waterfall

Each month’s ending MRR is built from the month before:

Starting MRR + New + Expansion − Churn = Ending MRR

This is the MRR waterfall. It shows not just how much you grow, but why — how much comes from new customers versus expanding existing ones, and how much churn drags against it.

What to look for

• Is growth coming from new logos or expansion? Healthy SaaS increasingly grows from expansion as it matures.
• How much is churn costing you? If churn is eating a large share of new MRR, retention is your highest-leverage fix, not acquisition.
• Which tier carries the model? If one tier dominates, your forecast is sensitive to its assumptions.

Related reading: MRR explained and churn and retention.