Assuming the number of new customers added each period in the Saas model is constant, and the rate at which customers leave (the churn rate), is constant, then the future value of an annuity formula can be used to calculate the number of customers at the end of any period.
The template below for a subscription based business revenue projection, can be used to generate a five year annual revenue projection which can be used as the starting point for our Financial Projections Template.
The revenue projection template provides a quick and easy method to estimate revenue generated by customers from a subscription based business model.
Starting with the current number of visitors per month to the website. monthly growth rates for each of the next 5 years are entered. The template allows for visitor/signup and signup/customer conversion rates to be entered, together with a customer churn rate.
The subscription based business revenue projection is useful for any type of subscription based website including software as a service (saas) business models.