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Revenue Forecaster

by Zoho Billing
Check out Zoho Billing

Revenue forecaster: Predict your business' future revenue

Plug in your current metrics and calculate future MRR of your subscription business.
Chart
Table
Find out how fast your business will grow.
What is your monthly recurring revenue this month?
On average, how much ​MRR do you add to your subscription business each month?
What percentage of the previous month’s ​MRR do you lose each subsequent month?
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support How to use the tool?

It is a simple four step process:

✓ Enter your recurring revenue for the month (MRR)

✓ Add your revenue growth

✓ Enter the revenue churned out (you can also add multiple ones and compare)

✓ And how far into the future you wish to see

Predict your revenue

anytime, anywhere.

Need Help? Contact us

Predict your revenue anytime, anywhere.

Ways to Combat Churn

Here are some simple, effective tips to combat your churn rate

Have an awesome product or service

Reducing churn and maximizing customer happiness all starts with having a product or service that people love.

Detailed help documentation

Your customers shouldn’t have to contact you every single time they need to know something; your help docs should do that job.

Engage your customers

Call them. Email them. Build a relationship with them. The quality of this relationship will determine if they’re going to stick with you.

Implement dunning management

Credit card failures are a major cause of customer churn, but they can be easily mitigated with dunning management.

Up-sell your existing customer base

Up-selling is a great way to beef up your recurring revenue and counter the effects of churn. Offer customers add-ons, extensions or plans with more features.

Scale your customer acquisition

Acquisition need not always cost money. Creative growth hacks and new channels can help you accelerate acquisition to compensate for customer churn.

An end-to-end solution to help you manage churn and increase customer base

Get started with Zoho Billing

Frequently Asked Questions

  • Why do I need a revenue forecaster tool?

    You can analyze how your business is performing and calculate the projected revenue of your business. This will help you make informed business decisions. What's more, you can do this for free, and get the report in seconds.

  • How do I use this tool?

    It's simple: just plug in your MRR, your revenue growth, and your revenue churn into the respective fields. Set the time period for which you want to forecast your revenue and sit back as the results will be displayed automatically.

  • What is MRR? How do I calculate it?

    MRR (Monthly Recurring Revenue) is the predictable revenue a business can expect to receive every month. It is calculated by taking into account only the recurring charges from a subscription.
    MRR for a subscription business can be calculated by summing up the recurring revenue from each customer for a month. Please note that one-time charges or setup fees should not be included in this calculation.
    For example: If you have customer A with a subscription plan at $20/month and another customer B at $60/month. Then your MRR would be:
    MRR = (20+60) = $80
    Let's take an example with a combination of monthly and yearly plans.
    For example: If you have a customer A with a plan at $2500/month and a customer B on $36000/year. Then your MRR would be:
    MRR = [2500 + (36000/12)] = $2800

  • How to calculate revenue growth?

    Revenue growth is the average MRR added to your subscription business in a month.

  • What is Revenue Churn? How do I calculate it?

    Revenue Churn is a the revenue lost in a period of time. It can be calculated using the following formula:
    Revenue churn = {Revenue lost in a period / Revenue at the beginning of the period} * 100

  • Why do I need to calculate MRR and Revenue Churn? How is it useful?

    You should focus on MRR as it is an accurate form of predicting the subscription revenue coming into your business from customers. It helps you plan and execute business decisions better.
    Revenue churn tells you the amount of recurring revenue you are losing over a period. It denotes the revenue lost due to leaving customers. So, a lesser revenue churn rate means your customers are retaining more customers and thereby your revenue is healthy.

  • Can I compare the results with a different revenue churn rate?

    Yes, you can. Just click the + Compare button, available next to the Revenue Churn field and key in the value you would like to compare with. By comparing different revenue churn rates, you can identify the change you need to make in order to decrease your revenue churn.

  • How do I reduce revenue churn and increase MRR?

    It is advisable to adhere to the following suggestions to combat churn:

    • Interact with customers and get feedback about your product or service.
    • Analyze customer usage and payment trends.
    • Make customer support your number 1 priority.
    • Know when a customer is at risk of leaving.
    • Follow up with leaving customers and try to win them back.
    • Offer discounts and help customers whenever possible.
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