Monthly Recurring Revenue Calculator

How to use this calculator

1. Pick your currency at the top of the calculator panel. It sets the formatting only and does not convert the figures.
2. Enter your beginning MRR — the recurring monthly revenue from active customers at the start of the month.
3. Add this month's new, expansion andreactivation MRR. These increase recurring revenue.
4. Add this month's contraction and churned MRR as positive amounts — the calculator deducts them for you.
5. Optionally, open Customer churn details and enter your customer count at the start of the month and how many churned, to see the customer churn rate.

The results update as you type. The headline figure is ending MRR; the overview figures give net new MRR, the MRR growth rate, the ARR run-rate and net revenue retention. The summary tab shows the full MRR movement bridge and the retention and churn rates.

Include recurring subscription income only. Exclude one-off setup fees, implementation fees, refunds, VAT or sales tax and other non-recurring payments. Convert annual contracts into a monthly equivalent by dividing by 12. MRR is not the total cash collected in the month.

What do I need to enter?

• Beginning MRR — recurring monthly revenue at the start of the month. It is the base for every rate, so rates show a dash while it is zero.
• New MRR, Expansion MRR andReactivation MRR — recurring revenue added this month, as positive amounts.
• Contraction MRR and Churned MRR — recurring revenue lost this month. Enter them as positive amounts; they are deducted for you.
• Customers at start of month and Customers churned this month — optional whole-number counts for the customer churn rate. Leave the first at zero to skip it.

What do the results show?

• Ending MRR — the main figure: beginning MRR plus net new MRR.
• Net new MRR and MRR growth rate — the month's net change, in money and as a percentage of beginning MRR.
• ARR run-rate — ending MRR × 12.
• Net revenue retention — the share of beginning MRR kept after expansion, reactivation, contraction and churn.
• Summary tab — the full MRR bridge, plus gross revenue retention, revenue churn rate, churned MRR rate and, if you gave customer counts, the customer churn rate.

How MRR is calculated

Every recurring revenue movement in the month is added to or taken away from your beginning MRR to give the ending MRR.

With a beginning MRR of £10,000, £2,000 of new MRR, £800 of expansion MRR, £200 of reactivation MRR, £400 of contraction MRR and £600 of churned MRR:

• Net new MRR is £2,000 + £800 + £200 − £400 − £600 = £2,000.
• Ending MRR is £10,000 + £2,000 = £12,000.
• MRR growth rate is £2,000 ÷ £10,000 × 100 = 20.00%.
• ARR run-rate is £12,000 × 12 = £144,000.
• Gross revenue retention is (£10,000 − £400 − £600) ÷ £10,000 × 100 = 90.00%.
• Net revenue retention is £10,000 ÷ £10,000 × 100 = 100.00%.

The five MRR movements

Contraction and churned MRR are entered as positive amounts and deducted by the formulas, so you never type a minus sign. A customer who downgrades is contraction; a customer who cancels entirely is churn.

Gross retention, net retention and churn

Gross revenue retention (GRR) is the share of your starting MRR you kept after contraction and churn, excluding new and expansion revenue. It cannot go above 100%.

Net revenue retention (NRR) is your starting MRR after expansion, reactivation, contraction and churn, still excluding brand-new customers. It can go above 100% when upgrades from existing customers more than replace what was lost.

Revenue churn rate is the recurring revenue lost through downgrades and cancellations as a percentage of beginning MRR. Churned MRR rate counts only full cancellations.Customer churn rate is the share of customers who cancelled, which differs from revenue churn whenever the customers who leave are worth more or less than average.

What to include and exclude from MRR

• Include: monthly subscription fees and recurring add-ons and seats.
• Include: annual and multi-year contracts, divided by the number of months they cover.
• Exclude: one-off setup, onboarding and implementation fees.
• Exclude: refunds, credits and one-time discounts.
• Exclude: VAT, sales tax and any pass-through charges.
• Exclude: usage overages and professional-services revenue that is not recurring.

Important information

Important: this calculator is for general business planning and is not accounting advice. It uses the figures you enter and standard MRR arithmetic; it does not apply revenue recognition standards or tax rules. For a full revenue-to-net-profit breakdown once overheads and tax are in the picture, see the Profit Margin Calculator, or the Break-Even Point Calculator to find the sales needed to cover costs. For what a subscriber is worth over their whole relationship with the business, see the Customer Lifetime Value Calculator.

Frequently asked questions