About mrr calculator
Monthly recurring revenue (MRR) is the predictable revenue a subscription business earns each month.
The movements
- New MRR from new customers.
- Expansion MRR from upgrades.
- Contraction MRR from downgrades.
- Churned MRR from cancellations.
Net new MRR
Net new MRR = new + expansion − contraction − churned. Multiply MRR by 12 for ARR.
A worked example
With 100 customers paying ₹1,000 a month, MRR is ₹1,00,000. In the next month, new customers add ₹15,000, upgrades ₹5,000, downgrades remove ₹2,000 and cancellations remove ₹4,000. Net new MRR is ₹14,000, so MRR becomes ₹1,14,000 and ARR ₹13.68 lakh.
Do not mix in one-offs
Setup fees, hardware and consulting are not recurring and should stay out of MRR.
Quick ratios
The SaaS quick ratio is (new + expansion) ÷ (contraction + churn). A value above 4 suggests strong growth, while below 1 means you are shrinking.
