MRR & ARR Calculator
Calculate Monthly Recurring Revenue, Annual Recurring Revenue, MRR growth rate, and Net Revenue Retention for SaaS businesses.
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How to use this calculator
MRR is built from its components: new subscriptions add new MRR, upgrades add expansion MRR, cancellations subtract churn MRR, and downgrades subtract contraction MRR. NRR shows whether existing customers are growing or shrinking in value.
- 1
Pull MRR data from your billing system (Stripe, Chargebee, Recurly) or CRM at the start and end of the month.
- 2
Break MRR movement into its components: new, expansion (upgrades), churn (cancellations), and contraction (downgrades).
- 3
Monitor NRR closely — above 100% means existing customers are growing and you have negative churn.
- 4
Track all five MRR components month-over-month to identify whether revenue challenges are an acquisition or retention problem.
Frequently asked questions
How does this tool model new customers, expansion, churn and contraction?
All four movements are dollar amounts of MRR that you type in, not customer counts or percentages. Net new MRR = new + expansion − churn − contraction. Ending MRR = beginning MRR + net new MRR. There are no cohorts, timing or compounding inside the period: every number is a single total for the period you choose.
How is MRR growth rate calculated?
Growth rate = net new MRR ÷ beginning MRR × 100. With the defaults, $8,300.00 of net new MRR on $45,000.00 gives 18.44%. If beginning MRR is 0 the tool shows 0.00% rather than dividing by zero, even though MRR may have grown from nothing.
What does Net Revenue Retention measure here?
NRR = (beginning MRR + expansion − churn − contraction) ÷ beginning MRR × 100. New-customer MRR is deliberately left out, so it shows what happened to the revenue you already had. The defaults give 99.6%. With a beginning MRR of 0 the tool shows 0.0%, because there is no base to retain.
How is ARR computed?
ARR = ending MRR × 12. It is a straight annualisation of the final month’s figure and ignores seasonality, multi-year contracts, one-off fees and discounts that may apply to annual plans. If you bill annually, convert each contract to a monthly amount before entering it.
What if churn is larger than the MRR I started with?
Ending MRR and NRR are floored at zero. Before this was fixed, $10,000.00 beginning MRR with $12,000.00 of churn showed a negative ending MRR of −$2,000.00, which cannot happen in a billing system. Net new MRR and growth rate still show the raw −$12,000.00 and −120.00%.
Can I enter negative values or clear fields?
A cleared box counts as 0, and negative entries are treated as 0, so enter churn and contraction as positive amounts. The tool subtracts them for you. Entering churn as a negative number would silently turn it into zero churn.
Does it separate logo churn from revenue churn?
No. It never sees customer counts, so it cannot calculate logo churn, customer lifetime or per-customer averages. It also does not check that your four movements reconcile with an actual billing export, which is worth doing before relying on the output.
MRR and ARR calculator — the monthly revenue bridge and net revenue retention
An MRR bridge in five inputs
Recurring revenue changes for four reasons, and the calculator keeps them apart. New customers and upgrades add to it, cancellations and downgrades take away. Starting from the MRR at the beginning of the period, it applies the four movements to reach ending MRR, annualises that, and then reports how fast the base moved and how much of the original revenue survived.
| Output | Calculation |
|---|---|
| Net new MRR | New + expansion − churn − contraction |
| Ending MRR | Beginning MRR + net new MRR (not below 0) |
| ARR | Ending MRR × 12 |
| MRR growth rate | Net new MRR ÷ beginning MRR |
| NRR | (Beginning + expansion − churn − contraction) ÷ beginning |
Growing on new sales versus growing on the base
The two scenarios below have similar growth rates, but they get there differently. The first leans on new customers while its existing base shrinks slightly. In the second, new sales are small and the existing customers expand. Both rows are calculator output.
| Beginning · new · expansion · churn · contraction | Ending MRR | ARR | Growth | NRR |
|---|---|---|---|---|
| $45,000 · $8,500 · $3,200 · $2,800 · $600 | $53,300.00 | $639,600.00 | 18.44% | 99.6% |
| $20,000 · $1,000 · $4,000 · $1,500 · $500 | $23,000.00 | $276,000.00 | 15.00% | 110.0% |
What the retention number adds
Growth of 18.44% looks stronger than 15.00%, but the first business’s existing customers are worth 99.6% of what they were at the start of the month, and the second’s are worth 110.0%. Without new sales the first business would be shrinking and the second would still be growing. NRR therefore separates the base from the acquisition engine, which the growth rate alone cannot do.
Preparing the inputs
Take MRR movements from your billing system for a single, consistent period, and classify each change once. An upgrade is expansion, a downgrade is contraction, a full cancellation is churn, and a first-time subscription is new. A customer who cancels and returns inside the same period may need a decision about whether you count both events. Whatever you choose, apply it each month so trends are comparable.
Boundaries of the calculation
Every figure is a monthly total entered by you, so the tool cannot detect misclassified or missing movements. It does not project future months, track cohorts or convert annual contracts. If beginning MRR is 0, growth and NRR both read as zero, so treat the first month of a business as a case for ending MRR and ARR only. A long run of monthly entries kept in a spreadsheet will show whether growth is steady.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →