Monthly Recurring Revenue (MRR) Calculator
Calculate your MRR from new, expansion, contraction, and churned subscribers. Track MRR momentum and project ARR from your subscription business.
📊 SaaS💼 MRR = (New + Expansion) − (Churn + Contraction)
New MRR this month ($)
Expansion MRR (upsells/upgrades) ($)
Churned MRR (cancellations) ($)
Contraction MRR (downgrades) ($)
Starting MRR this month ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Monthly Recurring Revenue (MRR) Calculator | MRR = (New + Expansion) − (Churn + Contraction) | $/month |
Step-by-Step Examples
Example 1
Growing SaaS
Start $30k, New $5k, Expansion $1.5k, Churn $0.8k, Contraction $0.2k.
- Net new MRR: $5k+$1.5k-$0.8k-$0.2k = $5,500
- Ending MRR: $35,500 | ARR: $426,000
- Healthy growth with expansion revenue offsetting churn well
✓ Net +$5,500 MRR, $426k ARR
Example 2
Struggling Retention
Start $50k, New $3k, Expansion $500, Churn $4k, Contraction $1k.
- Net new: $3k+$0.5k-$4k-$1k = -$1,500
- Ending MRR: $48,500 | ARR: $582,000
- Negative net MRR despite new growth — churn is a serious problem
✓ Net -$1,500 MRR — churn exceeding growth
Example 3
Expansion MRR Dominant
Start $100k, New $5k, Expansion $8k, Churn $3k.
- Net new: $5k+$8k-$3k = $10,000
- Ending MRR: $110,000 | ARR: $1.32M
- Expansion revenue exceeding churn is the mark of a healthy SaaS
✓ Net +$10k MRR via strong expansion
Real-World Applications
SaaS CEOs
Track MRR as the primary health metric for subscription businesses.
Investors
MRR and ARR are standard metrics requested in fundraising conversations.
Product Teams
Expansion MRR validates upsell/cross-sell product development priorities.
Finance
Convert MRR to ARR for contract value reporting and revenue recognition.
Common Mistakes to Avoid
⚠️
Mixing one-time revenue into MRR
MRR = recurring subscriptions only. Setup fees, consulting, and one-time payments are not MRR. Including them inflates and distorts your recurring revenue picture.
⚠️
Ignoring negative net MRR
Positive new MRR masking high churn is a dangerous blind spot. Track net new MRR to see the true health of your subscription base.
⚠️
Booking annual contracts as lump-sum MRR
Annual contracts should be divided by 12 for normalized MRR. Counting the full annual amount in month 1 creates misleading spikes.
Frequently Asked Questions
What is MRR vs ARR? ▾
MRR = total monthly subscription revenue. ARR = MRR × 12 (or sum of annual contract values). MRR is used operationally; ARR is often used for investor reporting.
What is net new MRR? ▾
New MRR + Expansion MRR − Churned MRR − Contraction MRR. Positive net new MRR means you're growing; negative means shrinking.
What is expansion MRR and why is it important? ▾
Revenue from existing customers upgrading or buying more. Companies with strong expansion MRR (>0% net churn) grow even without adding new customers.
What is a healthy MRR growth rate? ▾
Early stage (<$1M ARR): 15–20%+ monthly. Growth stage ($1–10M ARR): 5–10% monthly. Scale ($10M+ ARR): 2–5% monthly. These roughly track to triple-triple-double-double-double growth.
What is negative churn? ▾
When expansion MRR exceeds churned MRR, you have negative net churn — the holy grail of SaaS. Revenue grows even if you never add another customer.