MRR and ARR Calculator: Net New MRR and Growth
Enter your plan price and paying customers for MRR and ARR, then add new, expansion, contraction and churned MRR to see net new MRR and the month-on-month growth rate. Use it for subscription revenue only; the churn rate calculator shows the share of customers lost.
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Formula
MRR = plan price per month × paying customersARR = MRR × 12Net new MRR = new MRR + expansion MRR − contraction MRR − churned MRRGrowth rate = net new MRR ÷ MRR at the start of the period × 100Ending MRR = starting MRR + net new MRR
Worked example
200 customers at 49 a month give MRR of 9,800 and ARR of 117,600. The period starts at 8,000 MRR with 1,500 new, 400 expansion, 150 contraction and 350 churned, so net new MRR is 1,500 + 400 − 150 − 350 = 1,400. Growth is 1,400 ÷ 8,000 = 17.5% and ending MRR is 9,400.
Another example
120 customers on a 29 plan: MRR is 3,480 and ARR is 41,760. Suppose the month started at 3,000 MRR with 700 new, 150 expansion, 100 contraction and 270 churned. Net new MRR is 700 + 150 − 100 − 270 = 480, growth is 480 ÷ 3,000 = 16% and ending MRR is 3,480.
Rules of thumb
Very early subscription businesses often chase growth of 10% to 20% a month from a small base, while mature ones grow at a few percent a month. Percentages shrink as the base grows, so compare growth rates only at similar sizes.
Common mistakes
- Including one-off fees, setup charges or non-recurring usage.
- Counting an annual plan at its full price instead of dividing by 12.
- Counting free trials before they convert.
- Quoting ARR from a single strong month.
How it differs
MRR is recurring revenue at a point in time. Revenue is what you billed or recognised in a period and can include one-offs. Churn rate shows the loss alone, customer lifetime value turns churn and margin into customer value, and the runway calculator tells you how long cash lasts.
Frequently asked questions
What is the difference between MRR and ARR?
MRR is the recurring revenue you expect in a month; ARR is the same revenue over a year, so ARR = MRR x 12. With 200 customers paying 49 a month, MRR is 9,800 and ARR is 117,600.
How do I calculate net new MRR?
Net new MRR = new MRR + expansion MRR - contraction MRR - churned MRR. For 1,500 new, 400 expansion, 150 contraction and 350 churned it is 1,400.
How is the MRR growth rate worked out?
Divide net new MRR by the MRR at the start of the period. 1,400 on a starting MRR of 8,000 is 17.5% growth for that period. With a starting MRR of 0 (a first period) the growth rate is undefined and shows as 0, while MRR, ARR and net new MRR are still calculated.
What should I leave out of MRR?
Count only recurring subscription revenue. One-off fees, setup charges and usage that does not repeat are not MRR. Annual plans are divided by 12 before they are counted.
How do I calculate MRR for annual plans?
Divide the annual price by 12 and add it to monthly plans. A 588 annual plan counts as 49 of MRR, so 100 annual customers on 588 plus 50 monthly customers on 49 give 4,900 + 2,450 = 7,350 of MRR. Count a customer only while the plan is active.
What is a good MRR growth rate?
As a rule of thumb, early-stage subscription startups often aim for 10% to 20% a month, and established companies grow far slower in percentage terms. Growth of 16% on a 3,000 base is 480 of net new MRR. The same percentage on 300,000 is 48,000, which is much harder.
What is the difference between MRR and revenue?
MRR is the normalised monthly value of active subscriptions. Revenue includes one-off setup fees, usage and annual payments received in a month. A customer who pays 588 once a year adds 588 to that month's cash and revenue but only 49 to MRR.