MRR, ARR & Churn Calculator
Track the metrics a subscription business is actually judged on: MRR, ARR, net new MRR, churn rate and net revenue retention. Enter this month's movements to see where growth is really coming from.
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Net New MRR = New + Expansion − Contraction − ChurnEnding MRR = Starting MRR + Net New MRRARR = Ending MRR × 12NRR = (Starting + Expansion − Contraction − Churn) ÷ Starting
Splitting MRR into its four components is what makes the number diagnostic rather than decorative. Two businesses can both report $12,000 of net new MRR: one added $13,000 of new business and lost $1,000, the other added $30,000 and lost $18,000. The first is compounding; the second is running a treadmill that gets more expensive every month.
Net Revenue Retention Is the Headline Metric
NRR measures what happens to a cohort of existing customers without any new sales at all. Above 100% means expansion from existing customers more than replaces what churn takes away — the base grows by itself, and every new sale compounds on top of a rising floor. That is the single most valuable characteristic a subscription business can have, and it is why investors ask for NRR before they ask for revenue.
Below 100% means you are refilling a leaking bucket. Growth is still possible, but it costs acquisition spend every month just to stand still, and the maths gets harder as you scale.
Churn Is Not One Number
- Gross revenue churn — MRR lost to cancellations as a share of starting MRR. Never nets off expansion, so it cannot be flattered.
- Net revenue churn — the same figure after expansion. Can be negative, which is a good thing.
- Customer churn — the count of customers lost, ignoring their size. Diverges sharply from revenue churn when your customer base is uneven.
Report gross revenue churn alongside NRR. Quoting only net churn hides whether the business is retaining customers or simply upselling the survivors hard enough to cover the exits.
Accounting Note
MRR is a management metric, not a GAAP one. Recognised revenue under ASC 606 will differ — annual prepayments sit in deferred revenue and release monthly, and setup fees may need spreading across the contract term. Keep both sets of numbers and know which one you are quoting. Our SaaS accounting page covers the reconciliation, and the LTV:CAC calculator handles the acquisition side.
Frequently Asked Questions
What is a good net revenue retention rate?
Above 100% is strong for any subscription business. Best-in-class B2B SaaS reaches 120% or more. Below 90% suggests a product or fit problem that more sales spending will not solve.
Should annual contracts be counted in MRR?
Divide the annual contract value by twelve and include it in MRR. Recognising the whole amount in the month it was signed produces a spike that makes trend analysis meaningless.
Is MRR the same as recognised revenue?
No. MRR is a forward-looking run rate; recognised revenue follows accounting standards and the timing of delivery. They will not match, particularly where customers prepay annually.
How do I treat one-off setup fees?
Keep them out of MRR — MRR is recurring by definition. Track them separately as non-recurring revenue, and recognise them across the contract term if they relate to ongoing service delivery.