Baseline revenue refers to the consistent, recurring revenue a business can expect to generate over a given period, without accounting for growth, churn, or new sales. It represents a company’s starting point when forecasting future performance, setting revenue targets, and measuring the impact of new initiatives.

In SaaS, this typically includes revenue from existing, active subscriptions and renewals, but excludes one-time purchases, upsells, or expansion revenue.

It is a critical metric for planning, as it shows what the company would earn if no new deals were closed and no accounts were lost.

Example:

If a SaaS company begins Q1 with $200,000 in active subscription contracts, that $200,000 is its baseline revenue for the quarter.