Calculate MRR, ARR, net revenue retention, and SaaS growth metrics. Includes detailed breakdown analysis, growth projections, and stage-appropriate benchmarks for startup and enterprise companies.
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Monthly Recurring Revenue (MRR) is the lifeblood metric of any subscription business. It provides predictable revenue visibility that investors and operators rely on for planning. Our MRR calculator helps you compute simple MRR, analyze detailed component breakdowns (new, expansion, contraction, churn), calculate growth rates, and handle annual contracts. Whether you're tracking a $5K seed-stage product or a $5M enterprise SaaS, understanding your MRR dynamics is essential for sustainable growth.
MRR (Monthly Recurring Revenue) is the predictable, normalized revenue a subscription business earns each month. Unlike one-time sales, MRR represents committed recurring revenue from active subscriptions. For annual contracts, MRR is calculated by dividing the total contract value by 12. Key MRR components include: New MRR (from new customers), Expansion MRR (upgrades and add-ons), Contraction MRR (downgrades), Churned MRR (cancellations), and Reactivated MRR (returning customers).
MRR Formulas
Simple MRR = Customers × ARPU
Net New MRR = New + Expansion - Contraction - Churn
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100MRR provides a stable baseline for financial planning. Unlike lumpy one-time sales, recurring revenue lets you forecast with confidence.
MRR trends reveal whether you're growing, plateauing, or declining. A healthy SaaS shows consistent MRR growth month over month.
Breaking down MRR into components shows where revenue comes from—are you growing from new customers or expansion?
Net Revenue Retention (NRR) from MRR analysis shows if existing customers are generating more or less revenue over time.
Investors scrutinize MRR metrics closely. Clean MRR reporting is essential for fundraising at every stage.
MRR growth rate helps set realistic targets. T2D3 (triple, triple, double, double, double) is the gold standard for early-stage SaaS.
SaaS valuations often use ARR multiples. Higher MRR growth and retention command better valuation multiples.
Calculate MRR at month-end to track trends, compare to targets, and report to stakeholders.
Present MRR components, NRR, and growth rate to demonstrate business health and trajectory.
Model how price increases or new tiers will impact MRR before implementation.
Track churned MRR to understand revenue loss magnitude and identify retention opportunities.
Measure expansion MRR to optimize upselling and cross-selling strategies.
Clean MRR data with proper segmentation is essential for investor due diligence.
Good MRR growth depends on stage. Early-stage (<$1M ARR) should target 15-20% monthly growth. Growth stage ($1-10M ARR) should aim for 10-15% monthly. Scale stage (>$10M ARR) typically sees 5-10% monthly growth. The T2D3 framework suggests tripling ARR twice, then doubling three times.