Monthly Recurring Revenue (MRR) is the heartbeat of any subscription business. But the single MRR number only tells part of the story. To truly understand your revenue engine — and make decisions that improve it — you need to decompose MRR into its four components and track how each one is moving.
This free MRR growth calculator breaks down your MRR into new, expansion, churned, and contracted revenue, calculates your Net New MRR and month-on-month growth rate, converts to ARR, and projects your MRR trajectory forward based on your current growth rate.
It’s built for SaaS founders, revenue operations leaders, and investors who need a clear, complete view of revenue health beyond the top-line number.
Use the Calculator
What Is a MRR Growth Calculator (Free) – Track & Project Monthly Recurring Revenue?
MRR (Monthly Recurring Revenue) is the normalised monthly subscription revenue from all active paying customers. For a company with 200 customers each paying $99/month, MRR = $19,800.
MRR has four components that must be tracked separately:
- New MRR — revenue from brand new customers acquired this month
- Expansion MRR — revenue from upgrades, upsells, and seat additions from existing customers
- Churned MRR — revenue lost from customers who cancelled
- Contraction MRR — revenue lost from customers who downgraded
Net New MRR = New MRR + Expansion MRR − Churned MRR − Contraction MRR
A positive Net New MRR means your revenue base is growing. Negative means it’s shrinking. Understanding which component is driving the change tells you exactly where to focus.
Formula
MRR growth tracking uses a deceptively simple formula with high analytical power:
Ending MRR = Starting MRR + New MRR + Expansion MRR − Churned MRR Net New MRR = New MRR + Expansion MRR − Churned MRR MoM Growth Rate = (Net New MRR ÷ Starting MRR) × 100 ARR = Ending MRR × 12 Projected MRR = Current MRR × (1 + Growth Rate)^months
Example Calculation
A SaaS company with $50,000 starting MRR tracking a typical growth month:
| Starting MRR | $50,000 |
| New MRR (new customers) | +$6,000 |
| Expansion MRR (upgrades) | +$2,000 |
| Churned MRR (cancellations) | −$1,500 |
| Net New MRR | +$6,500 |
| Ending MRR | $56,500 |
| MoM Growth Rate | 13.0% |
| ARR (Ending MRR × 12) | $678,000 |
What Is a Good Result?
MoM growth rate benchmarks by company stage and ARR:
| Arr stage | Strong growth | Healthy growth | Slow growth |
|---|---|---|---|
| Under $1M ARR | 15–20%+ MoM | 10–15% MoM | Under 5% MoM |
| $1M–$5M ARR | 10–15%+ MoM | 7–10% MoM | Under 3% MoM |
| $5M–$20M ARR | 7–10%+ MoM | 5–7% MoM | Under 2% MoM |
| $20M+ ARR | 4–7%+ MoM | 2–4% MoM | Under 1% MoM |
How to Improve Your Results
Track All Four MRR Components Every Month
The overall growth rate hides which part of your revenue engine is healthy and which needs attention. **A company growing at 10% MoM could be doing so through massive new sales masking terrible churn**, or through outstanding retention with modest new sales. You need the breakdown.
Prioritise Expansion MRR as You Scale
Expansion MRR from existing customers typically costs **3–5× less to generate** than equivalent new MRR. As you scale, the proportion of growth from expansion should increase. If it's not, you likely have an untapped upsell opportunity or a customer success gap.
Forecast with Three Scenarios
Run your MRR projection with a **bear case (60% of current growth rate), base case (current rate), and bull case (130% of current rate)**. The bear case determines your minimum capital requirements; the bull case your hiring capacity. Planning for all three eliminates surprise.
Understand the T2D3 Growth Model
Top VC-backed SaaS companies target the **T2D3 path**: triple ARR for two consecutive years from $1M, then double for three years. This requires roughly 20%+ MoM growth in early stages. Use this calculator to benchmark your actual trajectory against the model.
Reconcile MRR Monthly to Catch Anomalies Early
Discrepancies between your CRM, billing system, and MRR reports are common and usually signal process errors or system mismatches. **Monthly MRR reconciliation** catches billing failures, duplicate records, and mis-categorised revenue before they distort your metrics.
Frequently Asked Questions
1What is MRR in SaaS?
MRR (Monthly Recurring Revenue) is the normalised, predictable monthly subscription revenue from all active paying customers. It excludes one-time fees, professional services, and non-recurring revenue. MRR is the primary health metric for subscription businesses because it’s consistent and comparable month over month.
2What is the difference between MRR and ARR?
**ARR (Annual Recurring Revenue) = MRR × 12**. It’s the same metric annualised. ARR is typically used for annual contract businesses and investor reporting. MRR is used for monthly operational tracking. Neither is a revenue forecast — they’re run-rate figures assuming zero growth.
3What is Net New MRR?
**Net New MRR = New MRR + Expansion MRR − Churned MRR − Contraction MRR**. It’s the net change in your MRR from one month to the next, accounting for all four revenue movements. Positive Net New MRR means your recurring revenue base is growing; negative means it’s shrinking.
4What MoM growth rate is needed to reach $1M ARR from $100K ARR?
Starting at $100K ARR ($8,333 MRR) and targeting $1M ARR ($83,333 MRR) requires 10× growth. At **10% MoM growth** this takes approximately 25 months. At **15% MoM** it takes 17 months. At **20% MoM** it takes just 13 months. Use this calculator’s projection feature to model your specific trajectory.
Conclusion
MRR is more than a number — it’s a story about the health of your entire revenue engine. Use the free MRR growth calculator above to decompose your revenue movements, track your growth rate, and see where your business will be if you maintain your current trajectory.