SaaS Revenue Forecasting Template: How to Predict Growth with Confidence

 Forecasting revenue accurately is one of the most important — and most challenging — tasks for any SaaS company. Subscription-based business models bring predictable income streams, but they also depend heavily on metrics like churn, customer acquisition, and expansion revenue. A well-structured SaaS revenue forecasting template helps founders, finance teams, and investors make data-driven decisions and plan sustainable growth. SaaS revenue forecasting template

Why Revenue Forecasting Matters in SaaS

Unlike one-time sales businesses, SaaS companies rely on recurring revenue from subscriptions. This means understanding future revenue involves more than just adding up new deals — you must account for renewals, upgrades, downgrades, and cancellations.
Accurate forecasting allows you to:

• Plan hiring and operational expenses confidently

• Set realistic growth targets

• Manage investor expectations

• Identify when to adjust pricing or customer acquisition strategy

Key Metrics for a SaaS Revenue Forecast

Before diving into the template, it’s essential to define the core metrics driving your forecast:

1. MRR (Monthly Recurring Revenue) – The predictable monthly income from active subscriptions.

2. ARR (Annual Recurring Revenue) – MRR × 12, often used for investor reporting.

3. New MRR – Revenue added from new customers.

4. Expansion MRR – Revenue gained from existing customers upgrading or adding seats.

5. Churned MRR – Revenue lost from cancellations or downgrades.

6. Net New MRR – (New MRR + Expansion MRR) – Churned MRR.

7. Customer Churn Rate – The percentage of customers lost in a given period.

8. Customer Acquisition Cost (CAC) – The average cost to acquire one new customer.

9. Customer Lifetime Value (LTV) – The total expected revenue from a customer during their subscription lifespan.

What a SaaS Revenue Forecasting Template Includes

A strong forecasting template breaks your revenue projections down by month and by customer segment. The following structure works well for most SaaS businesses:

Month
Starting MRR
New MRR
Expansion MRR
Churned MRR
Ending MRR
Growth %
Jan
$50,000
$10,000
$2,000
$3,000
$59,000
18%
Feb
$59,000
$12,000
$3,000
$4,000
$70,000
19%
...
...
...
...
...
...
...

You can expand this template to include:

• Number of new customers each month

• Average Revenue Per Account (ARPA)

• CAC payback period

• Cohort analysis to track retention by signup month

How to Build Your Forecast

1. Start with Historical Data
   Use at least 6–12 months of MRR and churn data to establish baselines.

2. Model Different Growth Scenarios
   Create conservative, moderate, and aggressive projections to see how assumptions impact results.

3. Include Seasonality or Market Changes
   Factor in known events like renewals, product launches, or pricing changes.

4. Incorporate Expansion Revenue
   Many SaaS businesses grow via upselling existing customers — model this realistically.

5. Review and Update Monthly
   Forecasts should evolve with real performance data.

Tools to Use

You can build your forecasting model in:

• Google Sheets or Excel – Flexible and easy to customize

• Financial modeling tools like Causal, Fathom, or LiveFlow for automation

• SaaS analytics platforms such as ChartMogul, Baremetrics, or ProfitWell for real-time data feeds