Tool · Compounding Calculator

See what compounding actually buys you.

Same net-new every month - the only difference is retention and expansion. Set your numbers and watch the gap open: the gray line is bookings alone, the cyan line is the same bookings with your retention working on top.

Why this isn't just the Operator's theory
40%

Expansion now drives about 40% of new-ARR growth for scaling SaaS, up from roughly 30% in 2021. Recurring revenue compounds after the close, which is the whole premise of Winning by Design’s Bow Tie model.

Winning by Design (Bow Tie model) · 2024 SaaS benchmarks ↗

Starting ARR$8.0M
Net-new / mo$150K
Net revenue retention110%
Horizon24 mo
Defaults are an example: a Series B at $8M ARR, $150K/mo net-new, 110% NRR. Drag to set yours.
By month 24, expansion contributes 36% of your growth: $2.0M of ARR the additive plan never sees.
━ net-new + expansion · $13.6M╌ net-new only · $11.6Mgap · $2.0M
$7.6M$9.3M$11.0M$12.6M$14.3Mnowm6m12m18m24
By quarter
QuarterNet-new onlyWith expansionGap
Q1$8,450,000$8,646,507$196,507
Q2$8,900,000$9,308,605$408,605
Q3$9,350,000$9,986,667$636,667
Q4$9,800,000$10,681,080$881,080
Q5$10,250,000$11,392,239$1,142,239
Q6$10,700,000$12,120,545$1,420,545
Q7$11,150,000$12,866,414$1,716,414
Q8$11,600,000$13,630,269$2,030,269
Full monthly model as CSV. Opens in Google Sheets, no email needed.

Part two · channels compound too

The same math runs across your channel mix. A YouTube engine feeds organic and search. Organic feeds paid efficiency. All of it feeds GEO, and GEO feeds them back. Channels run separately add. Channels run as one system multiply. Toggle a channel off and watch what it costs the others.

ChannelPipeline sourced · $/moOutput · base + reinforcement lift
Enter what each channel sources in pipeline per month - its revenue contribution, not what you spend on it.
$
$
$
$
This is your assumption, not a benchmark. Set it to what you'd defend in a board meeting. Bright bar segments = the lift the other channels add.
The math
channel output = base × (1 + r)n−1
base: the pipeline that channel sources today, $/mo. Your number, from the inputs above.
r: cross-channel reinforcement. Your assumption, from the slider: currently 10%.
n−1: how many other live channels feed this one. Currently 3 (from the toggles).
Right now: every live channel runs at ×(1 + .10)3 = ×1.331. System = sum of all channel outputs. Dividend = system − sum of bases. No other inputs, no hidden constants.
Run separately, these 4 channels make $200K/mo of pipeline. Run as one system at 10% reinforcement: $266K/mo. A 33% dividend worth $794K a year, at no added spend.
This is the model behind the Compounding Growth framework. Want it built into your plan?Book a free call →
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