How This Calculator Works
MRR turns the inputs into a visible formula-based estimate. Use it to compare margin, funnel movement, CAC, revenue, cost, and scenario planning before changing pricing, spend, or operations.
Use the MRR calculator to combine new, expansion, contraction, and churned monthly recurring revenue into net new MRR and ending MRR.
MRR movement adds new and expansion recurring revenue, then subtracts contraction and churned recurring revenue.
Formula
Ending MRR = starting MRR + new MRR + expansion MRR - contraction MRR - churned MRR.
Example Calculation
$50,000 starting MRR plus $8,000 new and $3,500 expansion, minus $1,200 contraction and $2,500 churn, ends at $59,800 MRR.
When to Use This Calculator
- Summarize SaaS revenue movement
- Track net new MRR
- Prepare monthly investor metrics
Practical Scenarios
- Run the calculator before changing pricing, spend, hiring, or targets so margin and cash impact are visible. Use case: Summarize SaaS revenue movement.
- Compare conservative, base, and optimistic assumptions when revenue, conversion, CAC, or cost can move quickly. Start with MRR, then compare the changed result with the original.
- Use related business calculators when one metric affects the wider funnel, payback, runway, or profit picture. This is especially useful when you need to prepare monthly investor metrics.
Tips
- Keep one-time fees out of MRR
- Track contraction separately from churn
- Reconcile against billing data
Common Mistakes
- Including setup fees
- Double-counting expansion
- Hiding contraction inside churn
- Reading revenue as profit before fees, refunds, discounts, labor, taxes, and fulfillment costs are included.
- Mixing monthly, annual, cohort, and campaign numbers in the same calculation.
Assumptions and Limitations
The MRR Calculator is strongest when revenue, cost, margin, period, and funnel assumptions all use the same reporting window. Review the formula, assumptions, and related calculators before using the result in a decision.
- Refunds, chargebacks, taxes, payment fees, labor, seasonality, and contracts can change real outcomes.
- The result is a planning estimate, not accounting, tax, legal, or professional advice.
- Verify assumptions against current records before changing prices, budgets, or strategy.
MRR explains MRR, monthly recurring revenue, net new MRR and expansion MRR through decision context such as margin, period, funnel quality, and cash impact.
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