Use this MRR calculator to normalize subscription revenue into monthly recurring revenue. Enter customers and average revenue per account, plan-level subscriptions, or recurring revenue movements such as expansion, contraction, and churn. The result gives MRR for SaaS reporting, forecasting, ARR conversion, growth analysis, and retention workflows.
What is Monthly Recurring Revenue (MRR)?
Monthly Recurring Revenue (MRR) is the normalized, contract-based revenue your business earns each month from active subscriptions, after discounts and excluding one-off or usage-based charges.
It gives operators and investors a clean view of predictable cash inflows, underpins ARR, net revenue retention, and LTV:CAC, and is a core input in SaaS valuation and growth planning.
Formula
The standard base formula:
Equivalently, when you track subscription movements as components:
Ending MRR for the period becomes:
Example
A SaaS business starts the month with Previous MRR of $45,000.
During the month it adds $8,000 in New MRR from new customers and $2,000 in Expansion MRR from upgrades and add-ons.
At the same time it loses $1,500 in Churned MRR from cancellations and $1,000 in Contraction MRR from downgrades.
Net New MRR is:
Ending MRR is:
That $52,500 of MRR implies ARR of $630,000, and feeds directly into metrics such as net revenue retention, LTV, and the revenue multiple an acquirer or investor might be willing to pay.
Related calculators and references
- Cluster hub: SaaS Metrics hub.
- Related calculator: ARR Calculator.
- Related calculator: NRR Calculator.
- Related calculator: GRR Calculator.
- Related calculator: LTV:CAC Ratio Calculator.
- Related calculator: CAC Payback Period Calculator.
- Reference: [MRR definition](./).
- Reference: ARR Calculator.
How to Use the Monthly Recurring Revenue (MRR) Calculator
Use this calculator to turn your subscription data into clean MRR, Net New MRR, MRR Growth %, ARR, ARPU, and SaaS Quick Ratio using either a plan-based or component-based workflow.
Choose your calculation method
- At the top, select Plan Mix if you want to input plan prices and subscriber counts, or Components if you already track New, Expansion, Contraction, Churned, and Reactivation MRR in your billing system.
Enter Previous MRR
- Type your Previous MRR (last period) value. This is the starting point the tool uses to compute Ending MRR and MRR Growth %, so pull it from your last closed month.
Fill in plan or component inputs
- Plan Mix: For each active plan (A, B, C…), enter the monthly price and number of subscribers; toggle additional plans if needed. Add recurring Add-ons MRR and recurring Discounts/Coupons MRR so the calculator can net them into total MRR. The engine computes each plan’s recurring revenue as MRR per plan = Price per month × Subscribers
- Components: Enter New MRR, Expansion MRR, Contraction MRR, Churned MRR, Reactivation MRR, plus Active Customers (start of period) so the tool can derive Net New MRR, MRR Growth %, ARPU, and Quick Ratio.
Review the Results panel
- Check the main MRR, ARR, Net New MRR, MRR Growth %, SaaS Quick Ratio (Q) and ARPU rows. Core calculations include: Net New MRR = New MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churned MRRUse these to see whether you’re compounding or stalling.MRR Growth% = Net New MRR / Previous MRR × 100
Interpret insights and try scenarios
- Read the What It Means section for a quick health check (e.g., hypergrowth vs. at-risk). Use the Try scenarios area to tweak prices, subscriber counts, or MRR components and watch how Net New MRR, MRR Growth %, and Quick Ratio respond before you commit to pricing or retention decisions.
Frequently Asked Questions
These FAQs explain MRR, included recurring revenue, expansion and churn movements, and how MRR converts to ARR.
How should I enter my data if I have several pricing plans, discounts, and add-ons?
Use the Plan Mix method. Enter your Previous MRR, then for each plan type (A, B, C…) add the monthly price and number of subscribers. Add recurring add-ons MRR and subtract recurring discounts/coupons MRR. Make sure you only include recurring revenue here, not one-off setup or services fees, so your MRR stays clean and comparable month over month.
What is Net New MRR in this calculator and how is it computed?
Net New MRR shows how much your recurring revenue really changed this month after all upgrades, downgrades, churn, and reactivations. The calculator uses the standard SaaS formula:
This is the key driver for your MRR Growth %.
When should I use the Components method instead of Plan Mix?
Use Components when your billing or analytics tool already gives you monthly figures for New, Expansion, Contraction, Churned, and Reactivation MRR. It’s faster for closing the books and board reporting. Use Plan Mix when you want to model pricing changes, subscriber growth by plan, or “what-if” scenarios starting from plan-level inputs.
How do I interpret the SaaS Quick Ratio and MRR Growth outputs?
The SaaS Quick Ratio is calculated as
Values above 4.0 usually signal hyper-efficient growth; 1–4 is decent but suggests room to improve churn and expansion; below 1 means you’re losing recurring revenue faster than you’re adding it and need to act quickly.
Sources & Methodology