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Monthly Recurring Revenue Calculator

Enter your beginning MRR and this month's new, expansion, reactivation, contraction and churned revenue to see your ending MRR, net new MRR, ARR run-rate and revenue retention.

This month’s MRR movements

Recurring monthly revenue from active customers at the start of the month.
Recurring monthly revenue from customers acquired during this month.
Additional recurring revenue from existing customers upgrading, adding seats or buying add-ons.
Recurring revenue from former customers who restarted their subscription.
Recurring revenue lost when existing customers downgrade but remain customers. Enter a positive amount — it is deducted for you.
Recurring revenue lost when customers cancel completely. Enter a positive amount — it is deducted for you.
customers
Optional. Used to calculate the customer churn rate. Leave at zero to skip it.
customers
Customers who cancelled completely during the month. Do not include customers who only downgraded.
Ending MRR
£12,000.00
Net new MRR
+£2,000.00
MRR growth rate
20.00%
ARR run-rate
£144,000.00
Net revenue retention
100.00%
Beginning MRR
£10,000.00
Revenue churn rate
10.00%
Beginning MRR
£10,000.00
New MRR
+£2,000.00
Expansion MRR
+£800.00
Reactivation MRR
+£200.00
Less contraction MRR
-£400.00
Less churned MRR
-£600.00
Net new MRR
+£2,000.00
Ending MRR
£12,000.00
MRR growth rate
20.00%
ARR run-rate
£144,000.00
Retention and churn
Gross revenue retention (GRR)
90.00%
Net revenue retention (NRR)
100.00%
Revenue churn rate
10.00%
Churned MRR rate
6.00%
Customer churn rate
5.00%

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.

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.

Net New MRR = New MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churned MRR
Ending MRR = Beginning MRR + Net New MRR
ARR Run-Rate = Ending MRR × 12
Gross Revenue Retention = (Beginning MRR − Contraction MRR − Churned MRR) ÷ Beginning MRR × 100
Net Revenue Retention = (Beginning MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churned MRR) ÷ Beginning MRR × 100
New MRR comes from new customers. Expansion MRR comes from existing customers paying more. Reactivation MRR comes from former customers returning. Contraction MRR comes from downgrades, while churned MRR comes from cancellations.

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

Each recurring revenue movement and how it affects MRR
MovementEffect on MRRWhat it is
New MRRAddedRecurring revenue from customers who signed up this month.
Expansion MRRAddedExtra recurring revenue from existing customers upgrading, adding seats or buying add-ons.
Reactivation MRRAddedRecurring revenue from former customers who restarted a cancelled subscription.
Contraction MRRDeductedRecurring revenue lost when existing customers downgrade but stay subscribed.
Churned MRRDeductedRecurring revenue lost when customers cancel completely.

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.

Frequently asked questions

What is monthly recurring revenue (MRR)?

MRR is the predictable recurring revenue from your active subscriptions, normalised to a monthly figure. It counts subscription income only — it excludes one-off setup and implementation fees, refunds, VAT or sales tax, and any other non-recurring payment. Annual contracts are converted to a monthly equivalent by dividing by 12. MRR is not the same as the total cash collected in the month.

How is MRR calculated?

Start with your beginning MRR — the recurring revenue from active customers at the start of the month. Add new MRR, expansion MRR and reactivation MRR, then subtract contraction MRR and churned MRR. The result is net new MRR, and beginning MRR plus net new MRR gives ending MRR.

What is net new MRR?

Net new MRR is the change in recurring revenue during the month: New MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churned MRR. A positive figure means recurring revenue grew; a negative figure means it shrank.

What is the ARR run-rate?

The ARR run-rate is your ending MRR multiplied by 12. It projects your current monthly recurring revenue forward a year as though nothing changed. It is a snapshot, not a forecast — it does not account for expected growth, churn or seasonality.

What is the difference between gross and net revenue retention?

Gross revenue retention (GRR) measures how much of your starting MRR you kept after contraction and churn, ignoring any new or expansion revenue: (Beginning MRR − Contraction − Churn) ÷ Beginning MRR × 100. It cannot exceed 100%. Net revenue retention (NRR) adds expansion and reactivation from existing customers back in, so it can exceed 100% when upgrades outweigh downgrades and cancellations. Neither includes revenue from brand-new customers.

How do you convert an annual contract to MRR?

Divide the annual contract value by 12. A £6,000 annual plan contributes £500 to MRR each month, regardless of when the customer is invoiced. MRR measures the recurring value of the subscription, not the timing of the payment.

Should contraction and churn be entered as negative numbers?

No. Enter contraction MRR and churned MRR as positive amounts — the calculator deducts them for you. Only the net new MRR and ending MRR figures carry a sign.

Why do the growth and retention rates show a dash?

Growth, retention and churn rates are all divided by beginning MRR, so they need a beginning MRR above zero. Net new MRR and ending MRR are still calculated when beginning MRR is zero, because they do not depend on dividing by it.

What is customer churn rate and how is it different from revenue churn?

Customer churn rate is the share of customers who cancelled: Customers churned ÷ Customers at start of month × 100. Revenue churn rate is the share of recurring revenue lost to downgrades and cancellations: (Contraction MRR + Churned MRR) ÷ Beginning MRR × 100. The two differ whenever the customers who leave pay more or less than average. The customer churn rate only appears when you fill in the optional customer fields.

Does changing the currency convert my figures?

No. The currency selector changes the formatting only — the symbol, the grouping and, for the yen, the decimal places. The amounts you enter and every calculated result stay exactly as they are. There is no exchange rate involved.