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MRR Calculator — Net New MRR, Growth Rate, and NRR
Track monthly recurring revenue with the full SaaS decomposition: new MRR, expansion, contraction, churn. Outputs net new MRR, growth rate, gross + net churn, NRR, and implied ARR.
MRR decomposition — why net new MRR is the cleanest SaaS health metric
MRR (Monthly Recurring Revenue) is the most-quoted SaaS metric, but the headline number hides what is actually happening. Net new MRR = new + expansion − contraction − churn. Decomposing it shows whether your growth is driven by new logos, existing-customer expansion, or simply by churn being temporarily low — three very different growth qualities.
The MRR components
- New MRR: from new paying customers this month.
- Expansion MRR: from existing customers upgrading or adding seats.
- Contraction MRR: from existing customers downgrading.
- Churned MRR: from customers canceling.
The formulas
net new MRR = new + expansion − contraction − churned ending MRR = starting MRR + net new MRR growth rate = net new MRR / starting MRR × 100% gross churn = churned / starting MRR × 100% net churn = (churned + contraction − expansion) / starting MRR × 100% NRR = (starting + expansion − contraction − churned) / starting × 100% implied ARR = ending MRR × 12
What NRR (Net Revenue Retention) tells you
- NRR > 100%: existing customers grow faster than they leave. The "expansion-fueled" SaaS model — gold standard.
- NRR = 100%: expansion exactly offsets churn. Growth must come entirely from new logos.
- NRR < 100%: leaky bucket. New-customer acquisition has to outrun the leak just to stay flat.
- NRR 110-130%: best-in-class. Snowflake hit 169% at IPO; Slack hit 143%; Datadog 130%.
When MRR alone misleads
A SaaS can grow MRR every month while NRR drops — if new-customer acquisition is masking a worsening churn / expansion ratio. Eventually new-customer growth slows (it always does) and NRR-driven leakage becomes the dominant force. Monitoring NRR before MRR slows is how good SaaS operators avoid this trap.
How to calculate MRR with proper decomposition
Five inputs from your billing system. Output: a complete monthly SaaS metrics snapshot.
Pull starting MRR
Day 1 of the month from your billing or Stripe / Chargebee / Recurly dashboard. Snapshot, not average.
Sum new MRR this month
Only from net-new paying customers. Exclude reactivations (count those separately or as expansion of churned).
Add expansion and contraction
Expansion = upgrades + seat adds from EXISTING customers. Contraction = downgrades + seat reductions. Plan changes from same customer in same month net out.
Add churned MRR
Full MRR lost from customers who fully canceled. Partial cancels = contraction, not churn.
Read NRR + growth rate
NRR > 100% = healthy. Growth rate 15-25%/mo in early stage; 5-10%/mo by Series B+. Below these = audit.
Frequently asked questions about MRR
MRR = sum of all monthly recurring revenue from paying customers. For annual contracts, divide ACV by 12 to convert to MRR. Net new MRR (the key growth metric) = new MRR + expansion MRR − contraction MRR − churned MRR.
MRR = monthly recurring revenue (what you bill monthly or would bill). ARR = annual recurring revenue (MRR × 12). ARR is the headline metric for investors and boards; MRR is the operating metric for product and sales teams.
100%+ is healthy; 110-130% is best-in-class; below 95% means the leaky bucket needs urgent attention. Public SaaS examples: Snowflake 169%, Datadog 130%, Slack 143% (at IPO). Below 95% NRR with high growth is unsustainable past Series B.
No. MRR is RECURRING only. Exclude setup fees, training, one-time professional services, and overage charges. Including non-recurring revenue inflates MRR and misleads on growth quality.
Two options: (1) count as new MRR (cleanest), or (2) split — expansion if returning to higher plan, new MRR if returning to same plan. Pick one convention and stick to it. Reactivations are a small fraction of MRR for most SaaS so the choice rarely changes the headline number.
15-25%/month in seed / Series A (often called "Triple-Triple-Double-Double-Double" trajectory — 3x year 1, 3x year 2, 2x year 3, etc). 5-10%/month for Series B+. Below 3%/month at any stage is usually below venture-grade growth pace.
