How We Calculate Revenue Estimates
Our methodology for validating ideas and projecting realistic MRR scenarios.
The Revenue Formula
MRR = Realistic Reach × Conversion Rate × Price PointWe calculate Monthly Recurring Revenue by multiplying three key factors derived from market research and realistic assumptions.
Conservative Conversion Rates
We intentionally use conservative conversion rates to provide realistic expectations:
Worst-case: minimal marketing, slow word-of-mouth
Active marketing, good product-market fit
Strong demand, viral growth, excellent positioning
Industry benchmarks often cite 2-5% as typical SaaS conversion rates. We err on the lower end to avoid over-promising.
Revenue Timeline
Our timeline projections assume a realistic ramp-up period:
Based on estimated development effort (usually 2-4 weeks)
Typically 1 week after MVP to allow for launch marketing
~12 weeks after first revenue to reach steady-state
Where the Data Comes From
Target Market & Reach
Estimated from subreddit sizes, forum activity, search volume, and comparable product user bases.
Price Point
Based on competitor pricing, perceived value, and target audience willingness to pay.
Market Signals
Sourced from Reddit discussions, indie hacker communities, and trend analysis.
Important Caveats
- •These are estimates, not guarantees. Actual results depend on execution, timing, and market conditions.
- •Revenue projections assume you can reach your target audience effectively.
- •One-time purchase prices are shown as-is; MRR potential assumes recurring customer acquisition.
- •These projections don't account for churn, refunds, or operational costs.