Free tool MRR and ARR calculator
Monthly recurring revenue moves for five reasons: new customers, upgrades, returning customers, downgrades and cancellations. Enter each one for the month and get ending MRR, ARR, net new MRR, the growth rate and how much revenue you lost from existing customers.
- MRR bridge in one form
- Annual plans ÷ 12
- Runs locally
Build the month's MRR bridge
All amounts are monthly recurring revenue for one month. Enter annual plans signed this month as their yearly price; they are divided by 12. Empty boxes count as zero.
MRR at the start of the month (the previous month's ending MRR).
MRR from customers who started paying this month.
Total yearly price of annual plans sold to new customers this month; ÷ 12 is added to new MRR.
Increase from existing customers: upgrades, extra seats, add-ons.
MRR from customers who had cancelled and came back.
Decrease from customers who stayed but downgraded or removed seats.
MRR of customers who cancelled or stopped paying.
Ending MRR
$53,100.00
Starting + new + expansion + reactivation − contraction − churned.
ARR (annual run rate)
$637,200
Ending MRR × 12.
Share these inputs: the values go after the # in the link, so they never reach a server.
https://tapcub.com/tools/mrr-arr-calculator
Version v1.0Updated Update history
What each line tells you
Ending MRR is the headline. The bridge underneath says whether growth came from selling more or losing less.
Ending MRR and ARR
$53,100 a month, or $637,200 annualised. ARR here is a run rate (MRR × 12), not contracted revenue or a forecast.
Net new MRR and growth
$5,100 added, 10.6% on the starting $48,000. Track it monthly; one large deal or one big cancellation can swing a single month.
Gross and net MRR churn
Gross churn (5.6%) is what you lost from existing customers. Net churn (1.9%) subtracts expansion. When net churn goes negative, the existing base grows on its own.
Quick Ratio
(New + expansion) ÷ (churn + contraction) = 2.78: for every dollar lost, $2.78 came in. The definition and its originator are on the SaaS metrics calculator.
Reactivation is added to ending MRR but kept out of net churn and the Quick Ratio, following the narrower definitions. Some billing tools fold it into new MRR; say which you use when you report.
Three steps
Most billing systems can export these movements; the work is classifying them consistently.
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1
Start from last month's ending MRR
Starting MRR must equal the previous month's ending figure, or the bridge will not add up over time.
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2
Classify every change once
Each customer's change goes in one box: new, expansion, reactivation, contraction or churned. A downgrade to zero is churn, not contraction.
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3
Normalise and exclude
Divide annual and quarterly plans down to a month. Leave out one-off fees, taxes and usage overages (see below).
Ending MRR = starting + new + expansion + reactivation − contraction − churned
This is the MRR bridge that billing analytics tools report; Stripe's MRR growth definition uses the same five movements plus a currency adjustment.
- ARR = MRR × 12; an annual plan counts as its yearly price ÷ 12 (Stripe's example: a $600-a-year plan is $50 of MRR)
- Not MRR: one-off and setup fees (ChartMogul's MRR guide), taxes, free plans and trials, and metered usage (excluded in Stripe's MRR)
- Growth = net new ÷ starting MRR; gross MRR churn = (churned + contraction) ÷ starting MRR
| Movement | MRR | Running total |
|---|---|---|
| Starting MRR | $48,000 | $48,000 |
| + New (monthly $4,200 + annual $18,000 ÷ 12) | +$5,700 | $53,700 |
| + Expansion | +$1,800 | $55,500 |
| + Reactivation | +$300 | $55,800 |
| − Contraction | −$600 | $55,200 |
| − Churned | −$2,100 | $53,100 |
| Ending MRR · ARR | $53,100 | $637,200 |
Same growth, different health
Two companies both add $5,000 of net new MRR on a $50,000 base. The bridge shows how differently they got there.
| New | Expansion | Contraction | Churned | Net new | Gross churn | Quick Ratio | |
|---|---|---|---|---|---|---|---|
| Company A | $4,000 | $2,500 | $500 | $1,000 | $5,000 | 3.0% | 4.33 |
| Company B | $10,000 | $1,000 | $1,500 | $4,500 | $5,000 | 12.0% | 1.83 |
Company B sells two and a half times as much new MRR but loses 12% of its base every month, so it has to keep running faster to stand still. Neither has reactivation. Sample figures.
What inflates or breaks MRR
MRR is meant to be the predictable part of revenue. Anything that is not predictable does not belong in it.
Counting one-off fees
Setup, onboarding and implementation fees do not recur. ChartMogul and Stripe both keep them out of MRR; report them as non-recurring revenue.
Counting usage spikes
Overage or metered charges vary month to month. Stripe excludes metered products from MRR by default. Count committed minimums only, or track usage revenue separately.
Booking annual plans as one month
A $1,200 annual plan is $100 of MRR, not $1,200 in the month it was paid. Booking the full amount creates a fake spike and a fake churn a month later.
Counting trials and free plans
Trials and free plans have no recurring revenue yet. Count a customer in new MRR when the first paid period starts.
MRR movements from your billing events
The B2B SaaS template in TapCub reads subscription events sent from your server: each carries an MRR figure normalised to monthly, so new, expansion and churned MRR become trends next to signups and trial conversion.
Billing events
subscription_started (MRR), subscription_upgraded (MRR delta) and subscription_cancelled (MRR and reason).
Learn moreNew, expansion and churned MRR
On one trend, next to payments collected.
Learn moreThe B2B SaaS template
Nineteen metrics from signup to churn, installed with the pack.
Learn moreMRR and ARR questions
Still have a question?
Chat with the team behind TapCub — we usually reply within a few hours on business days.
How do I calculate MRR?
Add up the monthly recurring price of every paying subscription, with annual and quarterly plans divided down to a month. For a month-over-month view: starting MRR + new + expansion + reactivation − contraction − churned = ending MRR.
How do I calculate ARR from MRR?
ARR = MRR × 12. $53,100 of MRR is $637,200 of ARR. This is a run rate; some companies report ARR from signed annual contracts instead, which can differ.
How do annual plans count in MRR?
Divide the yearly price by 12. Stripe's documentation uses this example: 100 customers at $100 a month plus 50 at $600 a year is 100 × $100 + 50 × $50 = $12,500 of MRR.
What should not be included in MRR?
One-off fees (setup, onboarding, services), taxes, free plans and trials, and variable usage charges. Stripe's MRR excludes taxes, free plans and metered products; ChartMogul's guide says one-time charges should be excluded.
What is net new MRR?
Ending MRR minus starting MRR: new + expansion + reactivation − contraction − churned. It is the cleanest single number for monthly growth.
What is the difference between gross and net MRR churn?
Gross MRR churn counts only losses (churned + contraction) as a share of starting MRR. Net MRR churn subtracts expansion. Net churn below zero, often called negative churn, means existing customers grow faster than they leave.
How is MRR churn different from customer churn?
Customer (logo) churn counts accounts lost; MRR churn counts revenue lost. Losing many small accounts gives high customer churn and low MRR churn. The churn rate calculator handles customer churn.
Update history
New features, fixes and data refreshes for this tool, newest first.
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· v1.0
LaunchedFirst release.
Missing something or found an error? Tell us — requests that come up often go into the next update. All tool updates
See MRR movements without a spreadsheet
Send subscription events from your billing system and the SaaS template charts new, expansion and churned MRR for you.