MRR calculator
Monthly recurring revenue (MRR) moves in four ways: new customers, upgrades, downgrades and cancellations. Enter the MRR at the start of the month and each movement to get the ending MRR, annual recurring revenue (ARR), the growth rate and the quick ratio.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the MRR at the start of the month.
- Enter new MRR from new customers and expansion MRR from upgrades.
- Enter contraction MRR from downgrades and churned MRR from cancellations.
How it works
- Net new MRR = new + expansion − contraction − churned.
- Ending MRR = starting MRR + net new MRR; ARR = ending MRR × 12.
- Growth = net new MRR ÷ starting MRR.
- Quick ratio = (new + expansion) ÷ (contraction + churned).
Worked example
A SaaS product starts the month at 20,000 MRR. It adds 3,000 from new customers and 1,000 from upgrades, and loses 500 to downgrades and 1,500 to cancellations.
- Net new MRR = 3,000 + 1,000 − 500 − 1,500 = 2,000.
- Ending MRR = 22,000; ARR = 264,000.
- Growth = 2,000 ÷ 20,000 = 10%; quick ratio = 4,000 ÷ 2,000 = 2.
Tips
- Convert annual and quarterly plans to their monthly amount before adding them.
- Track the four movements separately: the same net growth can hide high churn.
- For churn and net revenue retention, use the churn rate calculator.
Frequently asked questions
How is MRR calculated?
Ending MRR = starting MRR + new + expansion − contraction − churned. Starting at 20,000 with 3,000 new, 1,000 expansion, 500 contraction and 1,500 churned gives 22,000.
How is ARR related to MRR?
ARR = MRR × 12: the recurring revenue of one year at the current monthly level. An MRR of 22,000 is an ARR of 264,000.
What is the SaaS quick ratio?
Quick ratio = (new + expansion MRR) ÷ (contraction + churned MRR): how much revenue you add for each unit you lose. 4,000 added against 2,000 lost is a ratio of 2. It is not shown when nothing was lost.
What counts as MRR?
Only recurring subscription revenue, normalised to a month: a yearly plan of 1,200 counts as 100 a month. One-time fees, setup charges and usage overages are usually left out.
What is net new MRR?
The month's change in MRR: new + expansion − contraction − churned. It is negative when losses are larger than gains.