MRR Calculator
Calculate monthly recurring revenue and break it into growth components.
What the MRR Calculator does
Monthly recurring revenue is the predictable subscription revenue in a month. Breaking its movement into new, expansion, contraction and churn shows exactly where growth comes from and where it leaks.
Formula
Net new MRR = New + Expansion − Contraction − ChurnedEnding MRR = Starting MRR + Net new MRRNet revenue retention = (Start − Churn − Contraction + Expansion) ÷ Start × 100Quick ratio = (New + Expansion) ÷ (Churned + Contraction)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Starting MRR | selected currency | Yes | Accepts more than 0. |
| New MRR | selected currency | Optional | From new customers. Accepts 0 or more. |
| Expansion MRR | selected currency | Optional | Upgrades from existing customers. Accepts 0 or more. |
| Contraction MRR | selected currency | Optional | Downgrades, as a positive number. Accepts 0 or more. |
| Churned MRR | selected currency | Optional | Lost to cancellations, as a positive number. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Starting MRR.
- Optionally add New MRR, Expansion MRR and Contraction MRR.
- Select Calculate.
Worked example
$120,000 starting MRR, $18,000 new, $6,000 expansion, $2,500 contraction, $4,200 churned.
- Starting
- 120000
- New
- 18000
- Expansion
- 6000
- Contraction
- 2500
- Churned
- 4200
Net new $17,300, ending MRR $137,300 — 14.4% growth, 99.4% net retention, quick ratio 3.58.
Frequently asked questions
Should one-off fees count in MRR?
No. MRR is strictly recurring. Setup fees, professional services and one-time charges are excluded because they do not repeat.
How do I handle annual contracts?
Divide the annual value by 12. A $12,000 annual plan contributes $1,000 to MRR, regardless of when it was billed.