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FinToolSuite
Updated April 20, 2026 · 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.


Enter Values

People also use

Formula Used
Growth rate % (entered as a percentage value)
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%. ARR (Annualised Run Rate) = 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

Try 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.

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

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.

Example Scenario

Net new MRR of £8,000+£2,000-£3,000 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?
Early-stage (under 1M ARR): 10-20% monthly growth common. Growth-stage (1-10M ARR): 5-10% monthly. Scale-stage (10M+ ARR): 3-5% monthly. T2D3 framework: triple ARR years 1-2, double years 3-5.
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?
SMB SaaS: 3-7% monthly churn typical. Mid-market: 1-2% monthly. Enterprise: less than 1% monthly. Annualised: 5% monthly = 46% annual. Focus on net revenue retention (expansion offsetting churn) - 110%+ NRR is top-tier.
Net Revenue Retention vs Gross Retention?
Gross Retention = (previous - churn) / previous - measures customer retention only. Net Retention = (previous + expansion - churn) / previous - includes upsells. Net can exceed 100% if expansion outpaces churn. Top SaaS companies: 120-140% NRR.

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