FINBIZTOOLS
MRR Calculator
Track how monthly recurring revenue changed this period. Enter starting MRR plus new, expansion, churned and contraction MRR to see net new MRR, ending MRR and the implied annual run rate.
Private by design · Entries and logos stay in this browser. Nothing is saved automatically.
Changes the currency symbol and number format only. Amounts are not converted.
How to use the MRR Calculator
- Enter the starting MRR for the period.
- Enter new MRR added from new customers this period.
- Open Advanced assumptions to add expansion MRR (upgrades), churned MRR (cancellations) and contraction MRR (downgrades), if any.
- Select Calculate to see net new MRR, ending MRR and the implied ARR.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
What is MRR?
Monthly recurring revenue (MRR) is the predictable subscription revenue a business expects each month. Tracking how it moves — new customers, expansions, cancellations and downgrades — shows whether recurring revenue is growing and why.
This calculator computes one period's movement from figures you already have; it does not track a rolling history or forecast future periods.
How the calculation works
MRR movement formula
Net new MRR = New MRR + Expansion MRR − Churned MRR − Contraction MRR
Ending MRR = Starting MRR + Net new MRR
- New MRR is recurring revenue from customers acquired this period.
- Expansion MRR is additional recurring revenue from existing customers upgrading; contraction MRR is recurring revenue lost from existing customers downgrading; churned MRR is recurring revenue lost from cancellations.
Expansion, churned and contraction MRR default to zero in the advanced assumptions, for a simple new-MRR-only calculation when that is all you have. Implied ARR is ending MRR × 12, a simple annualization, not a contracted revenue commitment.
MRR calculation example
Starting MRR of 500,000 with 60,000 new, 20,000 expansion, 15,000 churned and 5,000 contraction MRR:
| Starting MRR | 500000 |
|---|---|
| New MRR | 60000 |
| Expansion MRR | 20000 |
| Churned MRR | 15000 |
| Contraction MRR | 5000 |
| Starting MRR | 500000 |
|---|---|
| Net new MRR | 60000 |
| Ending MRR | 560000 |
| Implied ARR | 6720000 |
With only new MRR of 60,000 entered and the rest left at zero, net new MRR is simply 60,000 and ending MRR is 560,000 — the same result. Amounts are shown without a currency symbol because the arithmetic is identical in any currency; the currency selector only changes the symbol and number format.
Assumptions and limitations
Assumptions
- All five figures refer to the same one-month period and the same revenue definition (e.g. gross or net of discounts) throughout.
- Expansion, churned and contraction MRR are optional and default to zero, so a simple starting-plus-new calculation works without them.
Limitations and why results can differ
- This is a single period's movement, not a rolling MRR history or a forecast of future periods.
- Implied ARR is a simple ×12 annualization of the ending MRR figure; it is not a signed contract value and can change materially month to month for an early-stage business.
Frequently asked questions
What is the difference between MRR and ARR?
MRR is monthly recurring revenue; ARR is its annualized equivalent, calculated here as ending MRR × 12. Use the ARR Calculator to convert directly.
What are expansion and contraction MRR?
Expansion MRR is extra recurring revenue from existing customers upgrading (e.g. a higher plan or more seats). Contraction MRR is recurring revenue lost from existing customers downgrading, without fully cancelling.
Do I have to fill in every field?
No. Expansion, churned and contraction MRR are optional advanced fields and default to zero, so you can calculate with just a starting figure and new MRR.
Can ending MRR be negative?
No. If churned and contraction MRR together exceed starting MRR plus new and expansion MRR, the calculator explains that ending MRR cannot be negative rather than showing an invalid figure.
Methodology
Starting MRR and new MRR are required and validated from 0 to 1,000,000,000,000. Expansion, churned and contraction MRR are optional advanced fields, default 0, validated over the same range.
Net new MRR = new + expansion − churned − contraction, computed directly. Ending MRR = starting + net new MRR, rejected if it would be negative. Implied ARR = ending MRR × 12. The calculation runs in your browser and inputs are not sent to a server.
Last reviewed:
Disclaimer
Results are calculated estimates based on the figures you enter. They are not accounting, pricing, tax or legal advice. Verify important business and pricing decisions with your own records and a qualified professional. Read the full Disclaimer.
Explore this topic
This tool is part of SaaS and Startup Metrics.
A common order: measure recurring revenue and churn, compare customer value with acquisition cost, then check runway.
- MRR Calculator (this page)
- LTV:CAC Calculator
- Runway Calculator