MRR calculator
Monthly recurring revenue (MRR) moves in five ways: new customers, expansion, reactivation, contraction and churn. Enter one month of movements to get net new MRR, ending MRR, the quick ratio and net revenue retention for the month.
Your numbers
New + expansion + reactivation, minus contraction and churned.
Starting MRR plus net new MRR.
MRR gained divided by MRR lost.
What customers from the start of the month now pay, as a share of what they paid then.
How it is calculated
Ending MRR = starting MRR + net new MRR
Quick ratio = (new + expansion + reactivation) / (contraction + churned)
Net revenue retention = (starting MRR + expansion − contraction − churned) / starting MRR
Contraction and churned are entered as positive numbers and subtracted by the formula. If your billing export shows them as negatives, drop the minus sign before you enter them.
Some definitions of the quick ratio leave reactivation out. Say which one you use when you compare figures.
Reading the result
Net new MRR says whether the month grew the business. A quick ratio above 1 means you added more MRR than you lost; below 1, MRR shrank.
Net revenue retention above 100% means existing customers paid more at the end of the month than at the start, because expansion outweighed downgrades and cancellations.
Read the components by plan or segment as well as in total. A growing total can hide a shrinking segment.
Pair this with the churn calculator and the LTV calculator. For forecasting recurring revenue, see revenue forecasting for subscription businesses.
Common questions
What is the difference between net new MRR and ending MRR?
Net new MRR is the change during the month: new plus expansion plus reactivation, minus contraction and churned. Ending MRR is what you carry into next month: starting MRR plus net new MRR.
Why is reactivation left out of net revenue retention?
Net revenue retention follows the customers who were paying at the start of the period. Reactivated customers were not in that group, so they count toward growth (net new MRR and the quick ratio) but not toward retention.
Should one-time charges be in MRR?
No. Setup fees, services and one-off overage invoices are not recurring. Keep them in a separate revenue line so months stay comparable.
How do I handle annual plans?
Divide the annual price by 12 and count that as MRR in each month. A $12,000 annual plan is $1,000 of MRR.
How is this net revenue retention different from the yearly figure companies report?
This calculator covers one month. Companies usually report NRR over twelve months for the customers they had a year earlier. To compare, run the same formula over a year of data.
Work it out from your own data
clariBI connects Stripe and your other business apps. On Starter and up you can ask about MRR in plain English and forecast it; the figures are calculated from your connected data.