New ARR calculator tool: Predict future revenue, cumulative cash flow, and deals closed

The Capchase Team
The Capchase Team
Posted on
July 17, 2023
min read
New ARR calculator tool: Predict future revenue, cumulative cash flow, and deals closed

In light of the success of our runway calculator, we’re happy to announce our latest tool, available to both customers and non-customers: our ARR calculator.

Using this tool, you can input a few key business metrics and get a quick estimate on 3 figures that illustrate your business’s future performance: ARR, cumulative cash flow, and deals closed.  

Why we built the ARR calculator

As a SaaS company, forecasting your future business performance is crucial for making strategic decisions, getting investor approval, and understanding the success of your current initiatives. But, predicting future performance can be complex and time-consuming.

With our ARR calculator, forecasting 3 of the most important metrics in understanding your business’s success is easier than ever. In just a few seconds you can see an approximate 12-month growth trajectory based on your current performance. 

How to calculate your ARR and future performance with this tool

Our ARR calculator is a simple, easy-to-use tool that provides actionable insights into your business’s future performance over the next 12 months.

Using the data we’ve acquired from tracking the performance of our existing customers, the ARR calculator uses a SaaS cash flow model to calculate the milestones your business is most likely to achieve within a certain timeframe based on the milestones other similar businesses have achieved within the same timeframe. 

We use several key metrics to make this calculation, including the average length of your sales cycles, the average discount you provide on annual contracts, your number of deals closed, the percent of contracts that are annual and pay upfront, and your average contract value (ACV). We also calculate how your business would perform with and without the help of Capchase Pay to accelerate your sales cycles and boost your ARR.

Understanding your results 

Here is a breakdown of how each of your results is calculated and what it means.

Projected deals closed

Your projected deals closed estimates how many deals you will close over the next 12 months based on your yearly average number of deals closed, number of annual, upfront-paid contracts, and sales cycle length. 

Projected ARR (annual recurring revenue)

Your projected ARR or annual recurring revenue estimates how much your total ARR will increase based on your business’s current performance. It is calculated by considering your projected deals closed month over month (MoM), ACV, and average discount.

Projected cumulative cash flow

Your projected cumulative cash flow refers to how much cash flow your business will incur over the next 12 months. It is based on your business’s number of annual contracts that pay upfront, projected deals closed month over month (MoM), projected ARR MoM, ACV, and the number of annual contracts that pay upfront.

Try out our annual recurring revenue calculator today

To see how your projected growth measures up and how much it could be improved by using Capchase Pay, calculate how payment terms affect your growth and ARR by clicking here