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MRR/ARR Calculator

Calculate recurring revenue and reconcile the movements that changed it.

About MRR/ARR Calculator

Reconciling the movements shows whether growth comes from acquisition or expansion, and how much is consumed by churn. The quick ratio expresses that efficiency in a single figure. Two businesses with identical net new MRR can have very different quality of growth, which only the movement breakdown reveals.

Formula

MRR/ARR

Net new MRR = new + expansion − contraction − churn; ARR = ending MRR × 12

quick ratio
Gained revenue divided by lost revenue, where four or more is strong
ARR
Annualised recurring revenue, simply twelve times MRR

Worked example

With the default values below, MRR/ARR Calculator returns Ending ARR of $1,608,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Starting MRRminimum 0
120,000
New customer MRRminimum 0
18,000
Expansion MRRminimum 0
6,000
Contraction MRRminimum 0
3,000
Churned MRRminimum 0
7,000

Results

Ending ARR
$1,608,000.00
Ending MRR
$134,000.00
Net New MRR
$14,000.00
Monthly Growth Rate
11.667%
SaaS Quick Ratio
2.400

Step by step

  1. 1Values used
  2. 2MRR/ARR
  3. 3Ending ARR= 1,608,000.00
  4. 4Ending MRR= 134,000.00
  5. 5Net New MRR= 14,000.00
  6. 6Monthly Growth Rate= 11.667
  7. 7SaaS Quick Ratio= 2.400

Assumptions and limits

  • The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is MRR/ARR calculated?

Net new MRR = new + expansion − contraction − churn; ARR = ending MRR × 12 Reconciling the movements shows whether growth comes from acquisition or expansion, and how much is consumed by churn. The quick ratio expresses that efficiency in a single figure.

Why does MRR/ARR matter?

Two businesses with identical net new MRR can have very different quality of growth, which only the movement breakdown reveals.

What values do I need to enter?

This calculator takes 5 inputs: Starting MRR, New customer MRR, Expansion MRR, Contraction MRR, Churned MRR. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

Related Calculators

MRR/ARR Calculator – Calculate Ending ARR & Ending MRR