MRR/ARR Calculator
Calculate Monthly and Annual Recurring Revenue with growth projections. Track MRR movements and forecast future revenue.
Quick Entry
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MRR Movement (Optional)
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Growth Projection
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Understanding MRR and ARR
Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) are the most important metrics for subscription businesses. They measure predictable, recurring revenue and are key indicators of business health and growth.
MRR Components
New MRR
Revenue from brand new customers signing up this month.
Expansion MRR
Additional revenue from existing customers upgrading or adding seats.
Contraction MRR
Lost revenue from customers downgrading to lower plans.
Churned MRR
Revenue lost from customers who canceled entirely.
MRR Formulas
ARR = MRR x 12
Net New MRR = New + Expansion - Contraction - Churn
Quick Ratio = (New + Expansion) / (Contraction + Churn)
The SaaS Quick Ratio
Quick Ratio measures the efficiency of your growth by comparing revenue gained to revenue lost:
- 4+ (Excellent): Adding $4 for every $1 lost. Very healthy growth.
- 2-4 (Good): Sustainable growth but room for improvement.
- 1-2 (Concerning): Growth is difficult, focus on retention.
- <1 (Critical): Losing more than gaining. Business is shrinking.
MRR vs ARR: When to Use Each
- MRR: Best for month-to-month tracking and operational decisions
- ARR: Best for annual planning, valuations, and investor communications
- Both: Important for a complete picture of recurring revenue
What NOT to Include in MRR
- One-time fees: Setup, implementation, or training fees
- Non-recurring add-ons: Consulting, custom development
- Trials: Until they convert to paid
- Annually prepaid: Should be spread across 12 months
How to Grow MRR
- Acquire new customers: Marketing, sales, partnerships
- Increase ARPA: Price increases, upsells, cross-sells
- Reduce churn: Better onboarding, customer success, product improvements
- Expand accounts: Usage-based pricing, seat expansion, feature upgrades
Accelerate Your MRR Growth
New customers are the lifeblood of MRR growth. We book qualified meetings that convert to new recurring revenue.
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