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Updated 2026-04-20 · SaaS & Subscription · Educational use only ·

MRR Calculator

SaaS subscription growth metrics.

Calculate Monthly Recurring Revenue growth, churn, and ARR for SaaS businesses. Enter previous period mrr to see mrr growth rate and current mrr.

What this tool does

Monthly recurring revenue movement decomposes into new MRR from fresh customers, expansion MRR from existing customer upgrades, and churn MRR from cancellations, measured against your starting MRR. This calculator takes your previous period MRR, new MRR, expansion MRR, and churned MRR as inputs and returns your current MRR, month-on-month growth rate as a percentage, annualized revenue, and churn rate. The growth rate is driven primarily by the balance between new and expansion revenue against churn. A typical use case is tracking subscription business health across a single reporting period. Note that this calculation assumes linear annualization and does not account for seasonality, customer acquisition costs, or mid-period timing variations. Results are for illustration and internal analysis only.


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Formula Used
MRR Growth Rate %
Previous period MRR
New MRR
Expansion MRR
Churned MRR

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

MRR (Monthly Recurring Revenue) calculator tracks SaaS subscription business growth. Net New MRR = New MRR + Expansion MRR - Churned MRR. Growth rate = Net New / Previous MRR × 100. Healthy SaaS companies target 10-15% monthly MRR growth at early stage, 5-10% at scale.

Example: previous MRR 50,000, new 8,000, expansion 2,000, churned 3,000. Net new = 7,000. Current MRR 57,000. Growth rate 14%. Annual Run Rate (ARR) = 684,000. Investors heavily focus on MRR growth, churn rate, and net revenue retention - the three core SaaS metrics.

MRR variants: New MRR (new customers), Expansion MRR (upgrades from existing customers), Contraction MRR (downgrades), Reactivation MRR (returning customers), Churned MRR (cancellations). Net New MRR is the headline metric. SaaS Magic Number = Net New ARR / Sales+Marketing spend - measures efficiency of growth investment.

A worked example

With the defaults: previous period mrr of 50,000, new mrr of 8,000, expansion mrr of 2,000, churned mrr of 3,000. The tool returns 14.00%. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Previous Period MRR, New MRR (new customers), Expansion MRR (upgrades), and Churned MRR (cancellations). Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

The formula behind this

Current MRR = previous + new + expansion - churned. Growth % = net new / previous × 100. ARR = current × 12. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

When the growth rate comes out low or negative

When the growth rate comes out low or negative, the underlying driver can be identified by adjusting each input in turn — the one that moves the result most is the lever the rate is most sensitive to for the current period. For some teams the bottleneck is churn rising faster than expansion; for others new acquisition has slowed; for some, a single large account downgrade has skewed the period. The breakdown into new, expansion, and churned MRR is designed to make that diagnosis straightforward.

What this doesn't capture

The result reflects only the inputs you provide and the assumptions built into the formula. It is a simplified model rather than a complete picture, and factors specific to your situation may matter just as much.

Example Scenario

MRR change: +£8,000 new +£2,000 expansion −£3,000 churned on £50,000 base = 14.00% growth.

Inputs

Previous Period MRR:£50,000
New MRR (new customers):£8,000
Expansion MRR (upgrades):£2,000
Churned MRR (cancellations):£3,000
Expected Result14.00%

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

This calculator computes monthly recurring revenue (MRR) growth by taking the previous period's MRR and applying net additions from new customer subscriptions, upgrades to existing customers, and losses from cancellations. The growth rate is expressed as a percentage of the prior period's MRR. The model assumes constant monthly revenue streams with no mid-month changes, treats all revenue categories as additive, and annualizes results by multiplying monthly figures by twelve. The calculation does not account for payment failures, refunds, one-time fees, implementation costs, payment processing fees, customer acquisition costs, or seasonal variation. Results reflect historical inputs only and do not forecast future performance.

Frequently Asked Questions

Healthy SaaS growth rate?
Growth-rate expectations vary widely by stage and segment. Early-stage SaaS businesses commonly post higher monthly growth rates than scale-stage ones, and growth typically compresses as the revenue base expands. The T2D3 framework (triple ARR in years 1-2, double in years 3-5) is one widely-cited benchmark for venture-scale SaaS, but it represents an aspirational trajectory rather than a universal expectation.
MRR vs ARR?
MRR (Monthly Recurring Revenue): committed monthly subscription revenue. ARR (Annual Recurring Revenue) = MRR × 12. Use MRR for monthly tracking, ARR for headline reporting and investor metrics. Both exclude one-time payments and usage-based variable revenue.
What's good churn rate?
Acceptable churn rates vary widely by customer segment and product type. SMB-focused SaaS typically sees higher monthly churn than mid-market or enterprise SaaS, which often run at materially lower rates. Even small monthly churn rates compound into substantial annual customer loss — a useful sense check is to compute the annualised figure from the monthly rate. Net revenue retention (expansion offsetting churn) is often the headline metric investors focus on, with values above 100% indicating that expansion from existing customers is outpacing churn.
Net Revenue Retention vs Gross Retention?
Gross Retention = (previous − churn) / previous — measures customer retention only. Net Retention = (previous + expansion − churn) / previous — includes upsells. Net Retention can exceed 100% if expansion outpaces churn. High-performing SaaS companies often report Net Retention meaningfully above 100%, indicating their existing customer base is growing in revenue terms without any new acquisition.

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