Monthly revenue movement
Enter your recurring revenue data
Use one reporting month and one currency. Enter recurring revenue only; leave one-time fees and non-recurring services out.
Recurring revenue result
Your SaaS revenue snapshot
Your MRR and ARR results will appear here.
MRR bridge
Monthly recurring revenue breakdown
| Revenue movement | Treatment | Amount |
|---|---|---|
| Enter your values and calculate to see the breakdown. | ||
What Are MRR and ARR?
Monthly recurring revenue (MRR) is the normalized recurring subscription revenue associated with one month. Annual recurring revenue (ARR) is the annualized value of recurring revenue. These metrics exclude one-time setup charges, professional services, hardware, and other non-recurring income.
How This MRR and ARR Calculator Works
The calculator uses a single monthly reporting period. Annual, quarterly, or weekly subscription values should first be normalized to a monthly amount using a consistent policy.
MRR Components Explained
New and expansion MRR
New MRR comes from customers starting paid recurring subscriptions. Expansion MRR is additional recurring revenue from existing customers through upgrades, added seats, add-ons, or higher recurring usage.
Reactivation MRR
Reactivation MRR comes from previously churned customers who resume a paid recurring subscription. It is kept separate from new-customer MRR.
Contraction and churned MRR
Contraction MRR is recurring revenue lost when an active customer downgrades or reduces recurring usage. Churned MRR is the recurring revenue lost when a subscription ends completely.
What the Results Do Not Show
MRR and ARR do not equal cash collected or accounting revenue recognized. This calculator also does not forecast future acquisition, churn, expansion, price changes, or currency movements.
Frequently Asked Questions
How do I calculate MRR?
For a monthly revenue bridge, add new, expansion, and reactivation MRR to beginning MRR, then subtract contraction and churned MRR.
How do I calculate ARR from MRR?
Multiply current MRR by 12. This annualizes the present recurring-revenue run rate and does not guarantee future revenue.
Should one-time revenue be included?
No. Exclude setup charges, professional services, hardware, and other non-recurring revenue from MRR and ARR.
What is the difference between contraction and churned MRR?
Contraction MRR is recurring revenue lost when an active customer reduces spending. Churned MRR is lost when the recurring subscription ends.
Can MRR growth be negative?
Yes. Net MRR Change and the MRR growth rate are negative when contraction and churned MRR exceed new, expansion, and reactivation MRR.
Methodology Sources
Definitions and formulas were checked against ChartMogul’s MRR movement guide, Chargebee’s MRR documentation, and Paddle’s ARR guide.
