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Forecast

See into the future of your business! 🔮

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Written by Baremetrics
Updated over 2 months ago

What is the Forecast tool?

Forecast allows you to project your net revenue, customer count, and MRR over the next year based on your current metrics.

How do I use the Cash Flow Forecast tool?

The Cash Flow tool shows you how much cash you can expect to take in, up to 12 months from now, based on the renewal date of all of your active subscriptions.

For each month, week, or day (depending on the date interval you choose at the top right) we show you two bars:

Purple/Red/Blue Bar
The expected cashflow based on your currently active subscriptions and when they are set to renew.

Green Bar
An estimate of how much cash you'll bring in based on the average of your last 3 month's net revenue growth rate.

How do I use the MRR Forecast tool?

Starting MRR

By default we pull in your current MRR, but you can change it if you'd like!

Growth Type

The vast majority of businesses experience linear growth. But you can have a little fun and see what exponential growth looks like.

Revenue Growth

We input your average MRR growth (New, Expansion, and Reactivation) over the past 3 months.

Revenue Churn

The value provided is your average revenue churn rate over the past 3 months.

How do I use the Customers Forecast tool?

Starting User Base

We pull in your current Active Customer count, but you can change this up.

Growth Type

As with MRR, most businesses don't experience exponential growth. But you can see what it would look like with this toggle.

User Growth

We bring in your average new customer count from the past 3 months.

User Churn

The churn percentage provided is your average user churn rate for the past 3 months. Try lowering your user churn percentage a bit. You'll be surprised at how big of an impact it has on your growth trajectory.

What do I do with these projections?

Use the projections to help decide what Goals to set for your MRR and churn rates.

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