MRR and ARR calculator

What it does

This MRR calculator takes the recurring revenue you started the month with and the five ways it moves: new customers, expansion from upgrades or extra seats, reactivated customers, contraction from downgrades, and churn from cancellations. It returns MRR at the end of the month, ARR, net new MRR, the growth rate, the quick ratio, and gross and net MRR churn. A short table shows where MRR would be in 3, 6, 12 and 24 months if the month repeated. Everything is worked out in your browser.

How to use it

1. Pick a currency and enter MRR at the start of the month. Count annual plans as the price divided by 12.
2. Enter the MRR added from new customers, expansion and reactivation.
3. Enter the MRR lost to contraction and to customers who cancelled.
4. Read the end-of-month MRR, ARR and the ratios.
5. Copy the summary into your monthly report.

How to read the result

The example starts at 42,000 MRR. During the month the business adds 3,000 from new customers, 1,200 from expansion and 200 from reactivation, a total of 4,400. It loses 500 to contraction and 1,300 to churn, a total of 1,800.

End-of-month MRR is 42,000 + 4,400 − 1,800 = 44,600, so net new MRR is 2,600 and growth is 2,600 ÷ 42,000 = 6.19%. ARR is 44,600 × 12 = 535,200.

The quick ratio is 4,400 ÷ 1,800 = 2.44: for every 1 lost, 2.44 came in. Gross MRR churn is 1,800 ÷ 42,000 = 4.29%. Net MRR churn subtracts expansion from the losses: (1,800 − 1,200) ÷ 42,000 = 1.43%. If expansion ever exceeds contraction plus churn, net churn turns negative, which means existing customers grow revenue on their own.

The projection shows two simple paths. If the same 2,600 is added every month, MRR reaches 73,200 after 12 months. If the 6.19% rate holds instead, it reaches about 86,350. The gap between the two shows how much a plan relies on growth compounding. Use your own trend from past months to judge which is closer.

The formulas:

• Ending MRR = starting MRR + new + expansion + reactivation − contraction − churned
• ARR = ending MRR × 12
• Quick ratio = (new + expansion + reactivation) ÷ (contraction + churned)

Reactivation is kept separate from new revenue so a win-back campaign does not look like fresh demand. To put a value on each customer behind these numbers, use the LTV calculator and the CAC calculator.

Expansion revenue usually depends on the product: seat management, usage limits and upgrade paths. Our web app development service builds those into SaaS products.