Membership Site Revenue Calculator

MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business earns each month. MRR = Number of Active Members x Monthly Subscription Price. For annual subscribers, divide annual revenue by 12 to get the monthly equivalent. MRR is the most important metric for subscription businesses because it predicts future cash flow.

A monthly churn rate below 2% is considered good for a subscription business; below 1% is excellent. At 5% monthly churn, you lose roughly half your members within 14 months. Reducing churn by even 1 percentage point has a large compounding effect on long-term revenue. The key drivers of churn are perceived value, community engagement, and the difficulty of the cancellation process.

The fastest path to higher MRR is reducing churn while adding new members. Additional growth levers include: price increases for new members (grandfathering existing members), annual plan discounts (which reduce churn by locking in subscribers), premium tier upsells, and expansion revenue from add-ons. New member acquisition through content marketing and referral programs tends to be more cost-effective than paid advertising.

Typical membership site costs include: platform or software (Kajabi, MemberPress, Teachable, etc., $50-300/month), payment processing (2.9% + $0.30 per transaction via Stripe), content creation and updates, email marketing platform, customer support tools, and your own time. Well-established sites often spend 15-30% of MRR on operations and growth.

LTV = Average Monthly Revenue per Member / Monthly Churn Rate. If members pay $29/month and churn at 3% per month, LTV = $29 / 0.03 = $967. LTV helps you determine how much you can afford to spend acquiring each new member. A common rule of thumb is to keep customer acquisition cost (CAC) at 30-50% of LTV.