MRR / ARR Calculator
Monthly Recurring Revenue waterfall — new, expansion, churned, contracted
Free MRR and ARR calculator. Enter new, expansion, churned, and contracted MRR to see net new MRR, ARR, month-over-month growth rate, and net revenue churn.
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What is a MRR / ARR Calculator?
MRR (Monthly Recurring Revenue) is the normalised monthly revenue from all active subscriptions. It is the most fundamental metric for any subscription or SaaS business — more reliable than total revenue (which fluctuates with one-time sales) and more granular than ARR (which hides month-to-month movement).
MRR is best understood through a waterfall: you start with last month's MRR, add New MRR (revenue from brand-new customers), add Expansion MRR (upgrades, seat additions, add-ons from existing customers), subtract Churned MRR (cancelled subscriptions), and subtract Contracted MRR (downgrades). The result is Net New MRR, and current MRR = previous MRR + Net New MRR.
The most important derived metric is Net Revenue Churn: (Churned MRR + Contracted MRR − Expansion MRR) ÷ Previous MRR. When this is negative (expansion exceeds churn + contraction), you have negative net revenue churn — your existing base grows in revenue even as some customers leave. This is the hallmark of truly product-led businesses and dramatically increases LTV.
Why use this MRR / ARR Calculator
Built for Indians, by Indians. Every number, every formula, every slab — tuned to FY 2026-27 reality.
MRR waterfall
New, expansion, churned, contracted — the four components that explain month-over-month MRR movement.
Net revenue churn
Whether expansion outpaces churn — negative net rev churn means existing base grows itself.
ARR
Annual Recurring Revenue = current MRR × 12. Standard metric for SaaS valuation.
MoM growth rate
Month-over-month growth rate of MRR — the velocity of revenue scaling.
Using the MRR / ARR Calculator in 4 steps
No onboarding, no signup. Answer three fields and the numbers update live.
Enter previous month MRR
Your starting MRR — the total from last month's calculation. For your first month, use your actual current MRR.
Enter new, expansion, churned, contracted MRR
New = first payments from new logos. Expansion = additional MRR from existing customers. Churned = MRR from cancellations. Contracted = MRR from downgrades.
Read net new MRR and ARR
Net new MRR is the month's net change. ARR = current MRR × 12. MoM growth = net new MRR ÷ previous MRR.
Check net revenue churn
If expansion > churned + contracted, you have negative net revenue churn — the most valuable growth dynamic in SaaS.
Tips to get the most out of it
Track MRR weekly during high-growth phases and monthly during steady state. Weekly tracking catches churn spikes faster — you can intervene before a bad product change or competitor move compounds.
For annual plan customers, use the normalised monthly value (annual price ÷ 12) in MRR, not the full annual amount in the month of payment. This prevents MRR spikes from misleading investors and your own team.
Separate expansion MRR by source: seat addition, plan upgrade, add-on purchase. Knowing which expansion motion works best helps you invest in the right product growth levers.
MRR growth rate of 10–15% monthly compounds to 3–5× annually — the T2D3 benchmark (triple, triple, double, double, double) many SaaS boards use as a growth standard.
Cohort your MRR data: how much of your current MRR came from customers acquired in each past month? Cohorts that expand over time (net negative churn) are far more valuable than flat cohorts.
Real-world scenarios
How Indians actually use this calculator — concrete inputs, concrete outcomes.
Early-stage SaaS
Prev MRR ₹10L. New ₹1.2L. Expansion ₹0.4L. Churned ₹0.5L. Contracted ₹0.15L. Net new: +₹0.95L. Current MRR: ₹10.95L. ARR: ₹1.31Cr. MoM: +9.5%. Net rev churn: +0.25% (positive — expansion not yet outpacing churn).
Growth-stage product-led
Prev MRR ₹50L. New ₹3L. Expansion ₹8L. Churned ₹3.5L. Contracted ₹1L. Net new: +₹6.5L. MoM: +13%. Net rev churn: −7% (negative — existing base drives ₹4.5L net from expansions). ARR: ₹6.78Cr.
Enterprise SaaS mature
Prev MRR ₹2Cr. New ₹15L. Expansion ₹20L. Churned ₹18L. Contracted ₹5L. Net new: +₹12L. MoM: +6%. ARR: ₹25.44Cr. Net rev churn: −1.5%. Stable, low-growth, highly capital-efficient.
Frequently Asked Questions
Still have a question? Our team replies within a business day.
MRR is normalised, recurring revenue only — subscriptions, retainers, SLAs. Revenue includes one-time setup fees, professional services, hardware, and other non-recurring items. MRR is a predictor of future revenue; revenue is what actually hit the P&L.
ARR = current MRR × 12. It is a forward-looking projection of what the next 12 months of recurring revenue would be if nothing changed. Annual revenue is what you actually collected in the past 12 months. ARR is used for valuation; annual revenue is used for accounting.
Expansion MRR = any increase in MRR from an existing customer that was not a new logo: seat additions, plan upgrades, add-on purchases, cross-sell of a second product. It does not include re-acquired churned customers (those count as new MRR).
Early stage (pre-₹1Cr ARR): 15–25% monthly is strong. Growth stage (₹1–10Cr ARR): 8–15% is competitive. At ₹50Cr+ ARR, 5–8% monthly (60–96% annual) is excellent. Growth rate naturally decelerates with scale — what matters is the absolute amount added.
Both, but for different purposes. MRR = currently active revenue (real-time health). Bookings = value of contracts signed (lagging indicator of sales effort). For operational decisions, MRR. For sales team performance, bookings. For investor reporting, both.
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