How To Create A SaaS Revenue Forecast Model In Excel

[@HowToAnalyst]

What else can I help you with in Excel?

[@mattcarlson157]

I am trying to create an equipment utilization report. The example would be for Medical Equipment. I have days used and days available giving me the percentage for the month. The goal would be to achieve 70% utilization every month. I want a goal of calculating how much I should need vs. what I actually have as well as the financial gain or decrease.

[@HowToAnalyst]

@@mattcarlson157 thank you for sharing, adding this to my video backlog!

[@donrua6632]

Loved your walkthrough. I grabbed several new ideas on navigating Excel.

[@HowToAnalyst]

Glad it was helpful!

[@benfithian659]

Thank you Pete - learned a lot from this. Never knew Alt + Enter did Sum. I’m still doing it “the old fashioned way” 😅

[@HowToAnalyst]

Glad to hear Ben!

[@KyleSorenti]

Transpose is really cool!

[@KyleSorenti]

Round function on client counts 👏👏👏

[@HowToAnalyst]

Good points Kyle, thank you!

[@chrisboring3170]

Nice video, but I'd like to see a more automated calculation and display of results. Maybe an entry tab with various options, like one-time vs. monthly revenue, and an automatic representation of the month to month cumulative revenue.

[@HowToAnalyst]

Great suggestion!

[@Exoplanet_Express]

Shouldn't cell O7 for total revenue be equal to N7 since the way you are calculating revenue it's cumulative?

[@SandhyaSwamy]

Can you explain more on seasonality? It's showing error and can you help as how did you delete the cells?

[@HowToAnalyst]

Seasonality refers to the changes in volume throughout the course of the year. For example, an ice cream cart may sell more in the warm summer months and less in the winter months. The month in which you sell your SaaS product impacts how much revenue you recognize in the year. As for the error, what error are you getting?

[@KyleSorenti]

Important to distinguish between monthly churn rate and annual churn rate

[@karishmaanand2688]

Thanks Pete, this was super helpful. I'm wondering how to incorporate upgrades and downgrades into this model. I'm thinking it would be through the wAVG MRR somehow but not positive how the calculations would look and hoping you can clarify. Thanks!

[@HowToAnalyst]

Glad it was helpful Karishma. Rather than tweaking the wAVG MRR I would break out the adds forecast for upgrades and downgrades. It will increase the complexity but sometimes that's necessary.

[@karishmaanand2688]

@@HowToAnalyst Thank you! Is it possible for you to explain how that would be calculated? How would the upgrades and downgrades be quantified since they could be for different amounts, etc.?

[@HowToAnalyst]

@@karishmaanand2688 I you need to find the median or mean amount for upgrades and downgrades and use that. In my experience there is a "rule of thumb" amount you can use that customers most frequently upgrade / downgrade to.

[@ASPAseethrough]

How did you create sesonality?

[@HowToAnalyst]

It should be based on the actual seasonality of your business - how sales change from month to month. If you want to be precise you could analyze sales by month or you could ask a senior sales person that understands the business.

[@rexvex2782]

alt plus enter doesnt work alit plus Equl sign works

[@HowToAnalyst]

You’re right, if I said Alt Enter that’s a mistake, good catch!

[@larzjohnson2400]

After I updated the "adds" column to incorporate seasonality, my variables (Adds,Churn,wAVG MRR) no longer update the entire chart when I try changing them. Any help/ideas for this? @HowToAnalyst

[@HowToAnalyst]

Hmm, I’d have to see it myself. Check precedents / dependencies on the formulas to see if it helps

[@KyleSorenti]

Youre still assuming drops cancel on the 1st

[@HowToAnalyst]

You are right, in my experience that typically is the case