About the MRR ARR Calculator
What is the MRR ARR Calculator?
MRR and ARR – monthly and annual recurring revenue – are the core metrics of a subscription business. This calculator builds the monthly MRR bridge from new customers, upgrades, downgrades and cancellations.
It also gives the SaaS quick ratio: MRR gained divided by MRR lost, a measure of growth efficiency.
How to use the MRR ARR Calculator
- MRR at the Start of the Month (₹) (sample: 25,00,000)
- New MRR from New Customers (₹) (sample: 3,00,000)
- Expansion MRR – upgrades, add-ons (₹) (sample: 1,20,000)
- Contraction MRR – downgrades (₹) (sample: 40,000)
- Churned MRR – cancellations (₹) (sample: 90,000)
- Press Calculate MRR & ARR (results also refresh as you type). The result card shows the Ending MRR, along with ARR (ending MRR × 12), Net new MRR, MRR growth this month and Revenue churn (contraction + churn).
Formula used
Ending MRR = Starting MRR + New + Expansion − Contraction − Churned
- ARR = ending MRR × 12
- Quick ratio = (new + expansion) ÷ (contraction + churned)
Exclude one-time fees such as setup and services from MRR.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| MRR at the Start of the Month (₹) | 25,00,000 |
| New MRR from New Customers (₹) | 3,00,000 |
| Expansion MRR – upgrades, add-ons (₹) | 1,20,000 |
| Contraction MRR – downgrades (₹) | 40,000 |
| Churned MRR – cancellations (₹) | 90,000 |
| Result | Value |
|---|---|
| Ending MRR | ₹27,90,000 |
| ARR (ending MRR × 12) | ₹3,34,80,000 |
| Net new MRR | ₹2,90,000 |
| MRR growth this month | 11.6% |
| Revenue churn (contraction + churn) | 5.2% |
| Quick ratio (gains ÷ losses) | 3.23× |
Tips for using the MRR ARR Calculator
- A quick ratio above 4 indicates efficient growth.
- Track expansion MRR separately; it is the cheapest growth.