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Project three months of MRR with churn on opening balance
- For FP&A and financial analysts
- You practice Catching mistakes and made-up facts
- Time about 5 minutes
- Level Intermediate
About this exercise
You're projecting recurring revenue for the CRO. Write a prompt for plain text with four lines starting "Month 1:", "Month 2:", "Month 3:" and "Change:". Each month line shows opening MRR minus churn plus new MRR equals closing MRR. Churn is 2% of that month's opening MRR (the annual 24% figure is not used). The Change line gives closing Month 3 minus the starting MRR. Round to whole dollars. Under 90 words.
Common mistakes when you ask AI for this
- Applying churn to the start balance. The AI takes 2% of $500,000 every month. Try: Say: "Churn is 2% of each month's opening MRR."
- Using the annual rate. The AI uses 24% a month or stacks both. Try: Add: "The annual 24% is the same assumption; do not apply it."
- Skipping the equation. The AI gives only closing numbers. Try: Add: "Each line: opening - churn + new = closing."
- Markdown extras. The AI adds bold labels, headings and a closing note. Try: Say: "Plain text, no bold. Output only the lines asked for."
- Trusting the AI to count words. AI is bad at counting and runs past word limits. Try: Ask for fewer words than the real cap and keep each part short.
What a strong prompt includes
- Names the four lines
- Sets churn on opening MRR
- Excludes the annual rate
- Asks for rounding
- Caps length
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