Free MRR Calculator

Quick answer

Monthly Recurring Revenue is the normalized recurring subscription revenue generated in one month. For operating analysis, break MRR into new, expansion, contraction, and churned MRR rather than tracking only the total.

Formula

Ending MRR = starting MRR + new MRR + expansion MRR − contraction MRR − churned MRR

Example

Starting at $50,000 MRR with $5,000 new, $2,000 expansion, ,000 contraction, and $3,000 churn ends at $53,000 MRR.

How to interpret it

Net new MRR tells you whether acquisition and expansion are outrunning contraction and churn.

Methodology, assumptions and limitations