How to Calculate Your Subscription Business Revenue
If you are running or planning to start a subscription business, you might be wondering how much money you can make from it. Subscription businesses are a great way to generate recurring revenue, build customer loyalty, and scale your business. But how do you estimate your monthly subscription business revenue?
The easiest way would be to use my free recurring revenue calculator which will automatically calculate everything for you, but let me take a moment to explain all the math and factors that go into figuring out your monthly earnings.
The easiest way would be to use my free recurring revenue calculator which will automatically calculate everything for you, but let me take a moment to explain all the math and factors that go into figuring out your monthly earnings.
There are a few factors that affect your subscription business revenue, such as:
The current number of subscribers: This is the number of customers who are currently paying for your subscription service or product. The more subscribers you have, the more revenue you generate.
The number of subscribers added each month: This is the number of new customers who sign up for your subscription service or product each month. The more subscribers you add, the more revenue you grow.
The number of subscribers lost each month: This is the number of customers who cancel or stop paying for your subscription service or product each month. The more subscribers you lose, the more revenue you shrink.
The subscription cost: This is the amount of money that each subscriber pays for your subscription service or product each month. The higher the subscription cost, the more revenue you earn.
To estimate your subscription business revenue, you need to calculate the following formula:
Subscription business revenue = (Current number of subscribers + Number of subscribers added each month - Number of subscribers lost each month) x Subscription cost
For example, let’s say you have a subscription business that offers online courses for $10 per month. You currently have 1,000 subscribers, you add 100 subscribers each month, and you lose 50 subscribers each month. Your subscription business revenue would be:
Subscription business revenue = (1,000 + 100 - 50) x 10 = $10,500
This means that you would make $10,500 from your subscription business in one month.
But what if you want to estimate your subscription business revenue for a longer period, such as a year or two? Or what if you want to experiment with different scenarios, such as increasing your subscription cost, adding more subscribers, or reducing your churn rate?
That’s where my free subscription calculator comes in handy. My recurring revenue calculator is a simple and powerful tool that helps you estimate your subscription business revenue for up to 2 years with any combination of factors! You can use it to:
Set realistic and achievable goals for your subscription business
Track and measure your subscription business performance
Optimize and improve your subscription business strategy
Plan and forecast your subscription business growth
All you need to do is enter your current number of subscribers, the number of subscribers added each month, the number of subscribers lost each month, and the subscription cost. Once you enter your numbers the subscription calculator will instantly show you your subscription business revenue for 2-years, as well as the total number of subscribers at the end of that period.
You can also adjust any of the factors and see how they affect your subscription business revenue. For example, you can see how much more revenue you would make if you increased your subscription cost by $5, or how much less revenue you would make if you lost 10 more subscribers each month. You can also compare different scenarios and find the optimal one for your subscription business.
My subscription calculator is free, easy to use, and accessible from any device. You can use it anytime, anywhere, and as many times as you want.
If you want to estimate your subscription business revenue and take your subscription business to the next level, try our subscription calculator today. You can find it here: https://www.subscriptionsociety.io/subscription-revenue-calculator
If you have any questions, feedback, or suggestions, please feel free to get in touch with me!
