MRR Calculator

There are five main types of MRR: New MRR (revenue from new customers), Expansion MRR (revenue from upsells, cross-sells, and upgrades from existing customers), Contraction MRR (revenue lost from downgrades), Churned MRR (revenue lost from cancellations), and Reactivation MRR (revenue from returning customers). Net New MRR combines all of these: New + Expansion + Reactivation - Contraction - Churned.

ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. ARR is typically used by enterprise SaaS companies with annual contracts, while MRR is preferred by companies with monthly subscriptions. ARR provides a bigger-picture view of revenue scale, while MRR is better for tracking month-to-month growth trends and identifying issues early. Both are essential SaaS metrics that investors look at closely.

Net MRR (or Net New MRR) is the change in your total MRR from one month to the next. It equals New MRR + Expansion MRR minus Churned MRR minus Contraction MRR. Positive Net MRR means your business is growing, while negative Net MRR means you are shrinking. This is often more important than total MRR because it shows the trajectory and health of your revenue growth.

A healthy MRR growth rate depends on your stage. Early-stage startups (pre-$1M ARR) should aim for 15-20% month-over-month growth. Growth-stage companies ($1M-$10M ARR) typically see 5-10% monthly growth. At scale ($10M+ ARR), 2-5% monthly growth is strong. The T2D3 framework suggests tripling revenue twice then doubling three times for top-tier SaaS growth. Consistent, compounding growth matters more than any single month.