Monthly recurring revenue.

MRR (Monthly Recurring Revenue) is the core SaaS metric - predictable subscription revenue normalized to a monthly rate. Annual plans get divided by 12 before being added. MRR breaks into components: new MRR (from new customers), expansion MRR (upgrades and seat additions), and churned MRR (cancellations and downgrades). Net New MRR is the monthly growth signal VCs track obsessively.

500 customers at 80 average MRR = 40,000 MRR, 480,000 ARR. This month added 20 new customers (1,600 new MRR), lost 10 (800 churned), and gained 500 expansion = Net New MRR 1,300. Growing 3.25%/month or ~47% annually - strong growth for a SaaS at this scale.

MRR excludes one-time fees, setup charges, and usage overages. Including those in MRR inflates the number and hides real subscription growth. Some SaaS companies report 'committed MRR' (CMRR) which includes contracted future revenue minus known churn; this is cleaner for valuation but requires signed contract visibility.

Quick example

With total customers of 500 and avg mrr per customer of 80 (plus new customers of 20 and churned customers of 10), the result is 40,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Total Customers, Avg MRR per Customer, New Customers, Churned Customers, and Expansion MRR. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

MRR = customers × avg MRR. ARR = MRR × 12. Net New MRR = new - churned + expansion (all in MRR terms). The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What the score tells you

Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.