SaaS Finance

MRR & ARR Calculator

Model net new MRR, ARR, and NRR from new, expansion, contraction, and churned revenue. Project growth over 1–36 months.

Quick Formula:Net New MRR = New MRR + Expansion MRR − Contraction MRR − Churned MRR. ARR = End-of-Month MRR × 12. NRR = (Starting + Expansion − Contraction − Churn) ÷ Starting × 100. Target NRR ≥ 100% and MRR churn < 2%.

Monthly Revenue Inputs

$

MRR Movement Components

$
$
$
$

Projection Settings

5%/mo

This Month's MRR Movement

+ New MRR$8.0k
+ Expansion MRR$3.0k
Contraction MRR$1.5k
Churned MRR$2.5k
Net New MRR+$7.0k

End-of-Month MRR

$57.0k

After this month's movement

ARR (Annualized)

$684.0k

MRR × 12

MoM Growth

+14.0%

Net new / starting MRR

Net Revenue Retention

98.0%

> 100% = expansion

MRR Churn Rate

5.0%

Churned / starting MRR

Expansion Rate

6.0%

Expansion / starting MRR

12-Month Projection

$165.3k MRR

$1.98M ARR

+230.7%

Monthly MRR Projection

5%/mo compound growth
Month 1Month 12
MonthMRRARRNet New MRRMoM Δ
Month 1$57.0k$684.0k+$7.0k+14.0%
Month 2$64.4k$772.8k+$7.4k+13.0%
Month 3$72.2k$866.6k+$7.8k+12.1%
Month 4$80.5k$965.8k+$8.3k+11.4%
Month 5$89.2k$1.07M+$8.7k+10.8%
Month 6$98.4k$1.18M+$9.2k+10.3%
Month 7$108.1k$1.30M+$9.7k+9.9%
Month 8$118.4k$1.42M+$10.3k+9.5%
Month 9$129.2k$1.55M+$10.8k+9.1%
Month 10$140.6k$1.69M+$11.4k+8.8%
Month 11$152.7k$1.83M+$12.0k+8.6%
Month 12$165.3k$1.98M+$12.7k+8.3%

The Four MRR Components

ComponentDefinitionImpact on Net New MRR
New MRRRevenue from customers who did not exist last month+ Positive
Expansion MRRAdditional revenue from existing customers (upsells, seat adds, plan upgrades)+ Positive
Contraction MRRLost revenue from existing customers who downgraded plans− Negative
Churned MRRRevenue from customers who fully cancelled their subscription− Negative

NRR & Growth Benchmarks

Pre-$1M ARR

  • MoM Growth: 15–20% MoM
  • Target NRR: ≥ 100% NRR
  • Churn: < 5% MRR churn

$1M–$10M ARR

  • MoM Growth: 10–15% MoM
  • Target NRR: ≥ 110% NRR
  • Churn: < 2% MRR churn

$10M+ ARR

  • MoM Growth: 5–8% MoM
  • Target NRR: ≥ 120% NRR
  • Churn: < 1% MRR churn

Frequently Asked Questions

What is the difference between MRR and ARR?

MRR (Monthly Recurring Revenue) is the normalized monthly revenue from all active subscriptions. ARR (Annual Recurring Revenue) is MRR × 12. ARR is the primary valuation metric for SaaS companies; MRR is the operational metric used for monthly reporting and forecasting.

What is Net New MRR?

Net New MRR = New MRR + Expansion MRR − Contraction MRR − Churned MRR. It represents the total net change in recurring revenue for the month. A positive net new MRR means revenue grew; negative means it shrank.

What is Net Revenue Retention (NRR)?

NRR measures revenue retained from existing customers including upsells and minus downgrades and churn. NRR > 100% means your existing customer base is growing revenue on its own. Best-in-class SaaS companies maintain NRR of 120–150%.

What is a good MoM MRR growth rate for SaaS?

Early-stage SaaS (pre-$1M ARR) should target 15–20% MoM. Growth-stage ($1M–$10M ARR) typically sees 10–15% MoM. At $10M+ ARR, 5–8% MoM is excellent.

What is MRR churn rate vs customer churn rate?

Customer churn counts the percentage of customers who cancel. MRR churn counts the percentage of revenue lost. They diverge when customers have very different plan sizes — losing one $10k/month enterprise customer is far more damaging than losing ten $50/month customers.

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