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MRR Calculator

Calculate your Monthly Recurring Revenue, growth rate, and projected ARR. Understand the health of your SaaS revenue engine.

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Total MRR

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Projected ARR

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Track MRR automatically from Stripe

ChurnWin connects to your Stripe account and calculates MRR, churn, expansion, and contraction in real time — no spreadsheets needed.

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Understanding Monthly Recurring Revenue

What is MRR?

Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue from all active subscriptions. It's the single most important revenue metric for subscription-based SaaS businesses because it smooths out one-time charges, annual prepayments, and variable billing into one consistent number.

How to calculate MRR

The simplest formula is:

MRR = Number of Customers x Average Revenue Per Account (ARPA)

Or, more precisely, sum the monthly-normalized revenue of every active subscription. For annual plans, divide the annual price by 12 to get the monthly contribution.

Types of MRR

To understand MRR movement, break it into four components:

  • New MRR — Revenue from brand-new customers acquired during the period.
  • Expansion MRR — Additional revenue from existing customers who upgraded or added seats.
  • Contraction MRR — Revenue lost from existing customers who downgraded.
  • Churned MRR — Revenue lost from customers who cancelled entirely.
Net New MRR = New MRR + Expansion MRR − Churned MRR − Contraction MRR

MRR vs ARR

Annual Recurring Revenue (ARR) is simply MRR multiplied by 12. Early-stage SaaS companies typically report MRR because changes are more visible month over month. Once you pass roughly $10M ARR, investors and boards typically shift to ARR as the primary metric.

What is a good MRR growth rate?

Benchmarks depend heavily on stage:

  • Pre-seed / Seed — 15–20% month-over-month growth is strong.
  • Series A — 10–15% monthly is typical of top-performing companies.
  • Series B+ — 5–10% monthly; growth naturally slows as the base grows.

The famous "T2D3" framework (triple, triple, double, double, double annual revenue) implies roughly 10–15% monthly growth sustained over five years to reach $100M ARR.

How to grow MRR

  1. Reduce churn — Every dollar retained is a dollar you don't have to re-acquire. Churn reduction has the highest ROI of any growth lever.
  2. Drive expansion revenue — Upsells, cross-sells, and seat-based pricing naturally increase MRR from existing customers.
  3. Optimize pricing — Most SaaS companies undercharge. Regular pricing reviews can unlock significant MRR gains.
  4. Shorten sales cycles — Faster time-to-close means new MRR arrives sooner.

ChurnWin tracks all MRR components automatically — connect your Stripe account and see your MRR breakdown, growth trends, and churn impact in real time.