Revenue Leakage Detector
Identify subscription revenue leakage from payments, churn, and discounts. Enter values for instant results with step-by-step formulas.
Worked Examples
Example 1: Early-Stage SaaS
Problem:$50K MRR, 8% failed payments, 35% dunning recovery, 20% trial conversion, 12% discount leakage.
Solution:Annual leakage: $148K (24.7%). Failed payments and trial conversion are biggest issues. Implement smart retry and improve onboarding.
Result:$148K annual leakage | 24.7% | Critical | Focus: dunning + trials
Example 2: Scaling SaaS
Problem:$500K MRR, 4% failed payments, 50% dunning recovery, 30% trial conversion, 6% discount leakage.
Solution:Annual leakage: $684K (11.4%). Moderate leakage. Optimize dunning further and implement card updater.
Result:$684K annual leakage | 11.4% | Moderate | Optimize existing systems
Example 3: Mature SaaS
Problem:$2M MRR, 3% failed payments, 60% dunning recovery, 35% trial conversion, 4% discount leakage.
Solution:Annual leakage: $1.8M (7.5%). Healthy leakage rate. Continue monitoring and incremental optimization.
Result:$1.8M annual leakage | 7.5% | Healthy | Maintain and monitor
Frequently Asked Questions
What is subscription revenue leakage?
Revenue leakage is money lost from your subscription business due to preventable causes: failed payments, involuntary churn, poor trial conversion, excessive discounting, and unmanaged downgrades. It's revenue you should have collected but didn't.
What's a normal revenue leakage rate?
Healthy SaaS businesses maintain leakage under 10% of potential revenue. 10-20% indicates room for improvement. Over 20% suggests significant operational issues. The best companies aggressively minimize every leakage source.
What is discount leakage?
Discount leakage occurs when discounts are applied inappropriately, excessively, or without proper approval. It includes expired promotional codes still working, sales reps over-discounting, and grandfathered pricing lasting too long.
How do I prioritize leakage fixes?
Prioritize by: 1) Size of leakage, 2) Ease of fix, 3) Implementation cost. Failed payment recovery is usually highest ROI—technical solutions can recover significant revenue quickly.