Revenue Model Calculator

Gain intuition for the dynamics of a subscription based business.

Model A

Conversion Rate

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Avg. Price

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Churn Rate

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Model B

Conversion Rate

[?]

Avg. Price

[?]

Churn Rate

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FAQ

  • What is this?

    A calculator for comparing different revenue models. You can set the parameters for each model and see a project of the first 12 months of revenue.

  • What are the parameters?

    Conversion rate is the proportion of users that purchase a product. Avg. Price is the average dollar value of a purchase or renewal. Churn rate is the proportion of subscribed users that cancel their subscriptions every month. You can scale the estimated number of daily downloads as well.

  • How does the model work?

    You can check out this blog post for an explanation of the formula behind the model.

  • Why is one-time models have a churn rate?

    A non-recurring revenue model is the same as a recurring model where everyone unsubscribes every month.

  • I plugged in numbers but it didn't match reality!

    These projections are only as accurate as the input parameters. I would hesitate to use it for anything other than broad stroke exploration.