MRR calculator
Enter last month's monthly recurring revenue and what changed: new customers, upgrades, win-backs, downgrades and cancellations. Get your ending MRR, net new MRR, growth rate, ARR, gross and net MRR churn, the SaaS quick ratio and a bridge chart. Free, no sign-up, nothing leaves your browser.
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The formulas
How to calculate MRR and its movements
MRR, monthly recurring revenue, is what your active subscriptions bring in each month. Each month it moves for five reasons: new customers, upgrades, returning customers, downgrades and cancellations.
Count only revenue that repeats. A yearly plan counts as one twelfth of its price each month, a quarterly plan as one third. Leave out setup fees, one-off invoices, taxes and customers still on a free trial.
New MRR comes from customers who started paying this month. Expansion is extra MRR from existing customers who upgraded or added seats. Reactivation is MRR from customers who had cancelled and came back. Contraction is MRR lost to downgrades, and churned MRR is what cancelled customers used to pay.
Churn rates and the quick ratio
Gross MRR churn shows everything you lost from the starting base. Net MRR churn subtracts what existing and returning customers added back, so it can go below zero. Below zero is called net negative churn: the customers you had grew your MRR even before any new sales.
This page counts reactivation in net churn and in the quick ratio, as in the Social Capital growth accounting where the quick ratio was first described. Some tools leave reactivation out. If your numbers do not match another report, check that first.
The quick ratio compares MRR added with MRR lost. A ratio of 4 means you add $4 for every $1 that leaves. With no contraction or churn at all, the ratio has no upper limit, and the calculator shows "no losses" instead of a number.
The 12-month projection
The projection only shows what this month's growth rate would add up to if it repeated for a year. Growth rates rarely stay flat, so treat it as an illustration, not a forecast.
$107,000
100,000 + 12,000 − 5,000 = $107,000
Net new MRR is $7,000, a 7% growth month. ARR is $1,284,000.
5% gross, 1% net
5,000 ÷ 100,000 = 5%
Expansion and reactivation won back $4,000 of the $5,000 lost.
2.4
12,000 ÷ 5,000 = 2.4
$2.40 added for every $1 lost. Growing, but below the 4 that investors look for.
Interpretation
How to read your result
Ending MRR tells you where you are. The other numbers tell you why you got there and whether it can last.
Net new MRR and growth rate
A positive net new MRR means you grew this month. Compare the growth rate across several months rather than reading one month alone: a big deal or a price change can make a single month look much better or worse than the trend.
The bridge chart
The chart shows each movement as a step from starting to ending MRR. Green steps add revenue and red steps remove it. If the red steps are about as long as the new step, most of your sales effort goes into replacing lost customers.
Gross and net churn
Gross churn shows how leaky the base is. Net churn shows whether upgrades make up for it. A business with 1% net churn and 5% gross churn depends on expansion: if upgrades slow down, the true loss shows.
Quick ratio
Below 1, MRR shrinks. Between 1 and 2, you grow, but most new revenue fills the gap left by churn. Social Capital's Jonathan Hsu wrote that below 2, "your churn is probably too high". 4 or more means growth comes cheaply, because little leaks out.
ARPA
Average revenue per account rises when customers upgrade or new customers pick bigger plans, and falls when you add many small accounts. A falling ARPA with rising MRR is fine if it was your plan, for example a new cheaper tier.
Worked example
One month of MRR movements, step by step
A SaaS company starts October with $100,000 MRR from 500 paying customers. During the month it wins new customers, upgrades some accounts and loses others.
New customers add $8,000 of MRR, upgrades add $3,000 and two former customers return with $1,000. Downgrades remove $2,000 and cancellations $3,000. At the end of October it has 520 paying customers.
1. Added: 8,000 + 3,000 + 1,000 = $12,000
2. Lost: 2,000 + 3,000 = $5,000
3. Ending MRR: 100,000 + 12,000 − 5,000 = $107,000
4. Net new MRR: 107,000 − 100,000 = $7,000
5. Growth rate: 7,000 ÷ 100,000 = 7%
6. ARR: 100,000 × 12 = $1,200,000 → 107,000 × 12 = $1,284,000
7. Gross MRR churn: 5,000 ÷ 100,000 = 5%
8. Net MRR churn: (5,000 − 3,000 − 1,000) ÷ 100,000 = 1%
9. Quick ratio: 12,000 ÷ 5,000 = 2.4
10. ARPA: 100,000 ÷ 500 = $200 → 107,000 ÷ 520 = $205.77
If 7% a month continued for a year, MRR would reach about $240,985. That is 125% annual growth, far above typical rates, which is why the projection is only an illustration.
| Movement | Amount | Running MRR |
|---|---|---|
| Starting MRR | $100,000 | $100,000 |
| New | +$8,000 | $108,000 |
| Expansion | +$3,000 | $111,000 |
| Reactivation | +$1,000 | $112,000 |
| Contraction | −$2,000 | $110,000 |
| Churned | −$3,000 | $107,000 |
| Ending MRR | $107,000 | $107,000 |
Press Show example in the calculator to load these numbers and change any of them.
Benchmarks
What good looks like
Only figures we could check at the original source on November 4, 2026. The retention figures are yearly, so compare them with a full year of your data, not one month.
Quick ratio: 4 or more
Mamoon Hamid, then at Social Capital, introduced the SaaS quick ratio at the first SaaStr Annual in 2015 and told founders to "maintain a quick ratio of greater than four". His colleague Jonathan Hsu wrote that for enterprise SaaS they preferred to invest in companies with a quick ratio above 4, and that below 2 "your churn is probably too high and you have something to fix".
Retention: about 101% net and 91% gross per year
SaaS Capital's 2025 survey of more than 1,000 private B2B SaaS companies found a median net revenue retention of 101% and a median gross revenue retention of 91%. Companies with contracts above $250,000 a year kept a median 95% gross.
As a rough monthly comparison, 91% gross retention a year is about 0.8% of MRR lost to contraction and churn each month, if losses were spread evenly. 24% yearly growth is about 1.8% a month. These are conversions, not separate benchmarks.
Use benchmarks as a direction, not a target
A young company with $10,000 MRR can grow 15% in a month; a company with $1 million MRR rarely does. Compare yourself with businesses of your size and price point, and above all with your own last six months.
Avoid these
Common MRR mistakes
Most wrong MRR numbers come from counting cash instead of subscriptions. Check these before you share the figure with your team or investors.
Counting an annual prepayment as one month
A customer who pays $1,200 for a year adds $100 of MRR, not $1,200 in the month they pay. Counting the full payment makes that month spike and the next eleven look like churn. Use the "work out MRR from customers and prices" helper to convert plans.
Including one-off fees
Setup fees, onboarding packages, consulting hours and one-off invoices are revenue, but not recurring revenue. They do not repeat next month, so they do not belong in MRR. Usage charges that vary every month need a clear rule; many teams leave them out or report them separately.
Ignoring discounts
A $100 plan sold with a permanent 20% discount adds $80 of MRR. A discount for the first three months is different: decide whether you subtract it while it lasts, and apply the same rule every month.
Counting trials as customers
A free trial is not revenue until the customer starts paying. Count the MRR in the month the subscription becomes paid, as new MRR.
Mixing up churn and contraction
A customer who moves from $500 to $200 a month is contraction of $300, not churn of $500. Keeping them apart shows whether you lose customers or only part of their spend.
Leaving new customers in retention numbers
New MRR belongs to growth. Net MRR churn and net revenue retention follow only the customers you had at the start, so including new sales makes retention look better than it is.
FAQ
MRR questions
What is MRR?
MRR, or monthly recurring revenue, is the amount your active subscriptions bring in each month. It includes only revenue that repeats, with annual and quarterly plans converted to a monthly amount. One-off fees, taxes and free trials are left out.
How do you calculate MRR?
Add up the monthly value of every paying subscription, or multiply paying customers by average monthly revenue per customer. To get this month's MRR from last month's, add new, expansion and reactivation MRR and subtract contraction and churned MRR.
How do you calculate the MRR growth rate?
Divide net new MRR by MRR at the start of the month. Going from $100,000 to $107,000 is $7,000 of net new MRR and a 7% monthly growth rate. With no starting MRR, the growth rate cannot be calculated.
What is the difference between MRR and ARR?
ARR, annual recurring revenue, is MRR multiplied by 12. It describes the same recurring revenue over a year. Companies with yearly contracts often report ARR, while companies with monthly plans tend to track MRR.
What is a good SaaS quick ratio?
Mamoon Hamid, who introduced the metric at SaaStr Annual 2015, called a quick ratio above 4 aspirational. Social Capital's Jonathan Hsu wrote that below 2 your churn is probably too high. Below 1, MRR is shrinking.
What is net negative churn?
Net negative churn means expansion and reactivation from existing customers add more MRR than contraction and cancellations remove. Your net MRR churn rate is below zero, and MRR would grow even without new customers.
How do I count annual plans in MRR?
Divide the annual price by 12 and count that amount every month of the contract. A $1,200 yearly plan is $100 of MRR. A quarterly plan is divided by 3. The calculator does this for you in the customers and prices helper.
Does the calculator store my data?
No. Everything runs in your browser. The share link keeps your numbers in the address after the # sign, which is not sent to our server.
References
Sources
- Quick ratio above 4: Mamoon Hamid, SaaStr Annual 2015 talk, transcript on SaaStr, "Mamoon Hamid of Social+Capital: Why Sh*t Really Gets Funded", October 8, 2015
- Quick ratio formula with resurrected users, and its origin: Jonathan Hsu, "Diligence at Social Capital Part 1: Accounting for User Growth", September 22, 2015
- Revenue growth accounting, quick ratio above 4 and below 2: Jonathan Hsu, "Diligence at Social Capital Part 2: Accounting for Revenue Growth", September 28, 2015
- Median net and gross revenue retention and growth rate: SaaS Capital, "2025 B2B SaaS Retention Benchmarks" (PDF), and "What is a Good Retention Rate for a Private SaaS Company in 2025?", September 18, 2025
- Annual plans divided by 12, trials, one-off invoices and ARR = MRR × 12: Stripe Support, "Understanding Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR)", checked November 4, 2026
- Definitions of new, expansion, contraction, churn and reactivation MRR: Stripe, "What is monthly recurring revenue (MRR)?", updated May 11, 2026
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