This simple ARR forecast template is ideal for when you want to forecast your revenue based on the health of your customers. We designed it for companies with a subscription service revenue model.
To calculate your ARR forecast, this model uses a list of your existing customers, the current annual subscription amount, the customer terms and overall customer health. In turn, the template provides you with a simple recurring revenue projection.
This new recurring revenue projection then becomes your new top-line forecast, which means you'll have a strong idea of where the business is headed.
We designed this model to calculate each account's chance of expansion, contraction and churn. Color-coded flags (green, yellow or red) give you quick and easy at-a-glance information.
A few more details:
- The account health drivers table calculates the weighted average of the different health ratings (i.e., 68 of 80 accounts are green, so green health has an 85% weighting).
- We input assumptions for churn, expansion, and contraction (sheet: data, column I).
- The starting MRR value on the data tab includes new sales as part of it's calculation (i.e., new sales revenue are including in starting MRR the month after their term starts).
- The starting MRR value on the data tab includes churn as part of it's calculation (i.e., new sales revenue are including in starting MRR the month after their term starts).
The end result is a projection of recurring revenue of your subscription business that can then be used to drive sales to a forecast that is based on clear metrics.
One of the best ways you can capitalize on opportunity and mitigate risk is to practice proactive future vision. Consistently looking at what you expect to happen and making the appropriate adjustments will keep you on track to meet—or surpass—your goals.
Use with Cube
This is an Excel template. You don't need to be a Cube customer to use it!
But if you are a Cube user, you can start using this template in under two minutes. Here's how.
Step 1: Open the template in Excel or Sheets.
Step 2: Customize the row and column headers to match your Cube's dimensions and filters.
Step 3: Select the range where you want to fetch your data.
Step 4: Fetch your data.