1. Enter starting MRR
Use the recurring subscription revenue active at the beginning of the reporting month. This becomes the baseline for measuring growth and churn.
Subscription revenue calculator
Monthly Recurring Revenue Calculator
Calculate ending MRR, net new MRR, annual recurring revenue, monthly growth, revenue churn, and average recurring revenue per customer from one clear dashboard.
Instant MRR results
Expansion and churn
ARR projection
Calculate your monthly recurring revenue
Enter subscription revenue movements from the same monthly reporting period for accurate results.
Include only recurring subscription revenue. Exclude one-time
setup fees, consulting charges, hardware sales, taxes, and
other non-recurring income.
How the Monthly Recurring Revenue Calculator works
The calculator starts with opening MRR, adds recurring revenue gained, subtracts recurring revenue lost, and then converts the result into growth, churn, retention, and annualised revenue metrics.
2. Add gains and losses
Add new, expansion, and reactivation MRR. Subtract contraction and churned MRR to determine the net movement in recurring revenue.
3. Review performance
The tool calculates ending MRR, ARR, growth rate, revenue churn, net revenue retention, and average MRR per paying customer.
Ending MRR
Starting MRR + New + Expansion + Reactivation
− Contraction − Churned MRR
Net New MRR
New + Expansion + Reactivation
− Contraction − Churned MRR
MRR Growth Rate
Net New MRR ÷ Starting MRR × 100
Metric
Direction
What to review
Net New MRR
Positive is better
Positive net new MRR means revenue gained from new, expansion, and reactivated accounts exceeded recurring revenue lost.
MRR Growth
Track consistently
Compare the growth rate across several months rather than relying on one period affected by seasonality, campaigns, or annual renewals.
MRR Churn
Lower is preferable
High churned MRR may indicate weak onboarding, poor product fit, pricing pressure, service problems, or customer concentration.
NRR
100%+ is strong
Net revenue retention above 100% means existing and reactivated customer revenue expanded enough to offset contraction and churn, before adding new customers.
Frequently asked questions
Important points for measuring recurring subscription revenue correctly.
What is Monthly Recurring Revenue?
Monthly Recurring Revenue is the predictable subscription revenue a business expects to receive each month from active customers. It normalises monthly, quarterly, and annual subscription plans into one monthly figure.
What revenue should be included in MRR?
Include recurring subscription charges and recurring add-ons. Exclude setup fees, professional services, hardware, taxes, usage charges that are not committed, and other one-time revenue.
How do I convert annual subscriptions into MRR?
Divide the annual recurring contract value by 12. For example, an annual subscription worth $1,200 contributes $100 to MRR, even if the customer pays the full amount upfront.
What is the difference between new and expansion MRR?
New MRR comes from customers who started paying during the month. Expansion MRR comes from existing customers who upgraded, purchased more seats, or added recurring products.
What is contraction MRR?
Contraction MRR is recurring revenue lost when an active customer downgrades, removes seats, receives a permanent discount, or reduces recurring usage without fully cancelling.
What is net new MRR?
Net new MRR is the total recurring revenue added from new, expansion, and reactivated customers minus contraction and churned MRR during the same period.
What is the difference between MRR and ARR?
MRR represents recurring revenue for one month. ARR annualises that amount by multiplying ending MRR by 12. ARR is useful for a high-level yearly view but should not be confused with recognised accounting revenue.
How often should MRR be reviewed?
Subscription businesses usually review MRR every month and compare changes by product, plan, customer segment, acquisition channel, and cohort. Weekly monitoring may also help fast-growing businesses identify churn or sales changes sooner.