Free Subscription Revenue Model (Excel + Google Sheets)
Subscription Revenue Model: What's Inside
The workbook is a single MRR Model sheet, one row per month for up to 36 months. On row 1 only, you enter a starting MRR seed - every month after that carries its starting MRR forward automatically from the prior month's ending MRR, so you never re-enter it by hand.
Each month you enter three inputs: new customers added, ARPU (average revenue per user), and your monthly churn rate. Everything else - customers, new MRR, churned MRR, ending MRR, ARR and growth % - calculates from those three numbers.
MRR Waterfall - New, Expansion and Churned Revenue
This is the same style of waterfall used in more complex SaaS financial models: ending MRR equals starting MRR plus new MRR minus churned MRR. Where a smartsheet-style growth-rate-only model just multiplies MRR by a percentage each month, this template separates out exactly how much revenue came from new customers versus how much was lost to churn.
Churned MRR isn't a flat percentage guess - it's derived from the number of customers you started the month with (starting MRR divided by ARPU) times your churn rate times ARPU, so the churn math stays tied to actual customer counts, not just a revenue-level assumption.
ARR and Month-Over-Month Growth
ARR is simply ending MRR times 12, recalculated every month as your MRR changes - useful for a quick annualized view without a separate calculation.
Growth % compares ending MRR to that same month's starting MRR, so you can see at a glance whether a given month grew or shrank net of both new customers and churn - the two numbers that actually drive whether a subscription business is compounding or stalling.
A Free, Ungated Alternative to Gated SaaS Modeling Tools
Several SaaS finance blogs and tools position MRR, churn and NRR modeling as something you need their platform for. This template gets you the core MRR waterfall - new, churned, ending MRR, ARR and growth - in one free spreadsheet, no signup to their software required.
It's intentionally simple: this is a model for understanding and projecting the mechanics of subscription revenue, not a replacement for a full three-statement financial model or your accountant's forecast.
How to use it
- On row 1 only, enter your starting MRR in the seed cell.
- Each month, enter new customers added, ARPU, and your monthly churn rate.
- Check new MRR, churned MRR and ending MRR - they calculate automatically and cascade to the next row.
- Check ARR and growth % for each month, and the summary below the table for total new/churned MRR and average growth across the period.
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Frequently asked questions
Do I need to re-enter starting MRR every month?
No. You only enter it once, on row 1. Every later month's starting MRR pulls automatically from the prior month's ending MRR.
How is churned MRR calculated?
Customers at the start of the month (starting MRR divided by ARPU) times your churn rate, times ARPU - so churn is tied to actual customer counts, not a flat revenue percentage.
Can ARPU change from month to month?
Yes. ARPU is a per-row input, so you can model a rising or falling average revenue per user across the projection period.
Does this work in Google Sheets?
Yes. Upload the downloaded file to Google Drive, then open it and choose File > Save as Google Sheets. The MRR cascade and every formula carry over and calculate the same way.
Is this a full 3-statement financial model?
No. It's a simplified educational model focused on the MRR waterfall, ARR and growth % - it doesn't include a balance sheet, cash flow statement or expense modeling.
Is this financial or investment advice?
No. This is a simplified educational model for exploring subscription revenue mechanics - it is not financial advice and does not replace a real financial model or your accountant's forecast.