About the MRR Calculator
This MRR calculator rolls your recurring revenue forward one month. Start with last month’s MRR, then add MRR from new customers and expansion (upgrades, extra seats, add-ons) and subtract contraction (downgrades) and churned MRR (cancellations). The result is this month’s MRR, annual recurring revenue (ARR = MRR × 12), net new MRR and month-over-month growth.
It is built for SaaS founders preparing a monthly metrics update, finance teams reconciling a billing export, and anyone who wants to understand what is driving growth. The breakdown shows gross and net revenue churn and the SaaS quick ratio — how many dollars of new and expansion MRR you add for every dollar lost — which reveals whether growth is efficient or a leaky bucket.
MRR should include only recurring subscription revenue, normalised to a monthly amount (an annual plan of $1,200 counts as $100 MRR). Exclude one-time setup fees, services and usage overages that do not recur. The 12-month projection simply assumes this month’s growth rate continues.
With the default inputs, the mrr at end of month is $57,500.00. Change any value above to recalculate instantly.
How to use the mrr calculator
- 1Enter MRR at the start of the month (last month’s ending MRR).
- 2Enter MRR added by new customers during the month.
- 3Enter expansion MRR from upgrades and extra seats.
- 4Enter contraction from downgrades and MRR lost to cancellations.
- 5Read ending MRR, ARR, growth rate and quick ratio, and check the projection.
Formula and method
MRR is the normalised monthly value of all active subscriptions. Each month it changes through four movements: new customers, expansion from existing customers, contraction when customers downgrade, and churn when they cancel. Net new MRR is the sum of these movements, and ARR is the ending MRR annualised as a run rate.
Growth rate is net new MRR divided by starting MRR. Gross revenue churn counts churned plus contraction MRR against starting MRR; net revenue churn subtracts expansion as well. The SaaS quick ratio compares MRR gained with MRR lost — a value of 4 means you add $4 for every $1 that leaves.
- MRR
- Monthly recurring revenue
- ARR
- Annual recurring revenue run rate (MRR × 12)
- Quick ratio
- Growth efficiency: MRR gained per dollar lost
Worked examples
$50k MRR with $7.5k net new
Net new MRR is 8,000 + 3,000 − 1,000 − 2,500 = $7,500, so MRR rises from $50,000 to $57,500 (15% growth) and ARR is $690,000. You gain $11,000 and lose $3,500, a quick ratio of about 3.1.
Growth-stage company with net negative churn
Expansion of $9,000 outweighs $7,000 of contraction and churn, so net revenue churn is −1%. Ending MRR is $214,000, ARR is $2.57M and growth is 7% for the month.
Shrinking month
Losses of $8,000 exceed gains of $4,000, so MRR falls by $4,000 to $96,000. A quick ratio of 0.5 means only 50 cents is added for every dollar lost — retention needs attention before more acquisition spend.
Frequently asked questions
How do you calculate MRR?+
Add up the monthly subscription value of every paying customer. Annual or quarterly plans are divided into a monthly amount, and one-time fees, services and non-recurring usage are excluded. For example, 100 customers on a $50 plan is $5,000 MRR.
What is the difference between MRR and ARR?+
ARR is annual recurring revenue, usually calculated as MRR × 12. MRR is better for tracking month-to-month momentum; ARR is the standard headline figure for annual planning, enterprise contracts and SaaS valuations.
What is net new MRR?+
Net new MRR is the total change in recurring revenue in a month: new MRR plus expansion MRR minus contraction and churned MRR. It shows whether growth is coming from acquisition, from existing customers, or being eroded by churn.
What is a good SaaS quick ratio?+
A quick ratio of 4 or higher is often cited as a sign of efficient growth, meaning $4 of new and expansion MRR for every $1 lost. Below 1, the business is losing more recurring revenue than it adds.
Should discounts and free trials count in MRR?+
Count the amount the customer actually pays after discounts, and exclude free trials and free plans until they convert. Including trials or list prices inflates MRR and makes churn look worse when they do not convert.