Calculate recurring revenue and reconcile the movements that changed it.
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.
MRR/ARR
Net new MRR = new + expansion − contraction − churn; ARR = ending MRR × 12
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.
Two businesses with identical net new MRR can have very different quality of growth, which only the movement breakdown reveals.
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.