Revenue Projection Calculator
Forecast your future revenue based on current monthly revenue and expected growth rate. See month-by-month projections, cumulative totals, and annualized figures for up to 5 years.
Your current MRR or monthly revenue
Expected month-over-month growth
1-60 months
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Understanding Revenue Projections
Revenue projections are essential for financial planning, fundraising, and strategic decision-making. They help you understand where your business is headed if current trends continue and how much runway you need to reach profitability.
Compound Growth Model
This calculator uses compound growth: Revenue(n) = Current Revenue × (1 + Growth Rate)^n. This means each month builds on the previous month's total, creating exponential growth. At 10% monthly growth, your revenue doubles roughly every 7 months and grows 3.1x in a year.
Growth Rate Benchmarks
Monthly growth varies dramatically by stage and vertical. Seed-stage startups might target 15-25% monthly growth. Series A companies typically grow 10-15% monthly. Series B and beyond often slow to 5-10% monthly. Consumer products tend to grow faster initially but plateau sooner than enterprise B2B.
Using Projections for Fundraising
Investors want to see realistic projections backed by assumptions. Show your current growth rate, explain what drives it, and project conservatively. A credible projection with clear assumptions beats an optimistic one without justification. Build best-case, base-case, and worst-case scenarios.
Frequently Asked Questions
- How do you project future revenue?
- Revenue projection uses your current monthly revenue and expected growth rate to forecast future income. The formula is: Future Revenue = Current Revenue × (1 + Growth Rate)^n, where n is the number of months. This compound growth model assumes a consistent month-over-month growth rate.
- What is a good monthly growth rate for a startup?
- Y Combinator considers 5-7% weekly growth exceptional, which translates to roughly 20-30% monthly. For most startups, 10-20% monthly growth is strong, 5-10% is decent, and below 5% may indicate product-market fit challenges. Growth rates typically slow as companies scale — sustaining 10%+ monthly growth beyond $1M ARR is rare.
- What is the difference between revenue projection and revenue forecast?
- Revenue projection typically means extending current trends forward using mathematical formulas (like compound growth). Revenue forecast is broader and may incorporate market analysis, sales pipeline data, seasonal adjustments, and expert judgment. Projections are simpler and more formulaic; forecasts are more nuanced and potentially more accurate.
- How accurate are revenue projections?
- Simple compound growth projections are useful for planning but become less accurate over longer time horizons. Growth rates rarely stay constant — they typically decline as you scale (law of large numbers), face market saturation, or encounter competition. Use projections as directional guides, not precise predictions, and build scenarios with different growth assumptions.
- What is ARR vs MRR?
- MRR (Monthly Recurring Revenue) is your total predictable revenue per month from subscriptions. ARR (Annual Recurring Revenue) is MRR × 12. ARR is commonly used for companies above $1M in annual revenue and is the standard metric for SaaS valuations. MRR is more useful for tracking monthly growth trends and making operational decisions.