A Smart Bear · Jason Cohen
articleprincipleMax MRR: Your growth ceiling
27 July 2025Profit
Source excerpt
About A Smart BearYour company will stop growing sooner than you think. The "Max MRR" metric predicts revenue plateaus based on churn and new revenue.
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Apollo layer
What a founder can learn
Founder takeaway
Model the revenue ceiling implied by your current churn and new monthly recurring revenue instead of assuming today’s growth rate will continue. If the projected plateau is too low, improve retention, increase new revenue, or both before growth stalls.
Why it matters
Growth can look healthy even as churn creates an approaching ceiling. Estimating that ceiling early helps founders redirect resources before a plateau becomes visible in headline revenue.
Put it to work
Using your current churn and new MRR, what revenue plateau does the Max MRR model suggest—and which single lever will you prioritize this quarter to raise that ceiling?
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