Business Tools

MRR / ARR Calculator

Calculate Monthly Recurring Revenue, ARR, Net New MRR, and SaaS Quick Ratio

Last updated: How we build & verify
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How it works

Normalises every subscription to a monthly figure to give one predictable recurring revenue number. The movement breakdown into new, expansion, contraction, and churned MRR is what actually explains growth, far more than the headline total.

Formula
MRR = Σ (customers on a plan × normalised monthly price)
Net new MRR = New + Expansion − Contraction − Churned
ARR = MRR × 12
Variables
  • New MRRrecurring revenue from customers acquired this month
  • Expansion MRRupgrades, seat additions, and usage increases from existing customers
  • Contraction MRRdowngrades and seat reductions
  • Churned MRRrecurring revenue from customers who cancelled
Worked example
Inputs: 320 customers at $49, 85 at $199, 12 at $999; movements of $14,000 new, $3,500 expansion, $1,800 contraction, $4,200 churned
  1. 320 × 49 = 15,680
  2. 85 × 199 = 16,915
  3. 12 × 999 = 11,988
  4. Total MRR: 44,583
  5. Net new MRR: 14,000 + 3,500 − 1,800 − 4,200 = 11,500
Result: MRR $44,583 (ARR $534,996), net new MRR $11,500
Notes
  • Annual contracts are divided by 12, not booked in the month they are paid. Booking the full amount turns MRR into a cash-collection chart and destroys its predictive value.
  • One-time fees, setup charges, professional services, and hardware are not recurring and belong outside MRR.
  • Report MRR net of discounts at the actual price paid. Listing customers at list price overstates the number by whatever your average discount is.
  • ARR × 12 is only valid for genuinely monthly subscriptions. Usage-based products with variable spend need a trailing average rather than a spot multiplication.

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Frequently Asked Questions

Yes. Mrr Calculator costs nothing, needs no account, and runs right in your browser. There is no paywall, no watermark on the results, and no limit on how many times you can run the numbers.

Mrr Calculator uses the standard formula for this kind of calculation, so the output is only as good as the figures you type in. Rates, fees, and rules in finance shift over time, and we review the underlying assumptions on a regular schedule; check the "Last reviewed" date above for the most recent pass. Spotted something off? There's a feedback button in the bottom-right corner.

MRR Calculator | ExaCalc