MRR Calculator — Monthly Recurring Revenue Tracking
Calculate and break down your MRR into new, expansion, contraction, and churned revenue. The essential SaaS health metric explained.
MRR is the pulse of any subscription business. It's not the same as monthly revenue — it's specifically the predictable, recurring component. One-time fees, setup charges, and variable usage don't count. Use the CalcHub MRR Calculator to calculate your total MRR and break it into the five components that actually tell you where growth is coming from.
MRR = Sum of All Active Monthly Subscriptions
If you have 200 customers on a ₹999/month plan and 50 on a ₹2,999/month plan:
MRR = (200 × ₹999) + (50 × ₹2,999) = ₹1,99,800 + ₹1,49,950 = ₹3,49,750/month
Annual contracts? Divide by 12. A customer on ₹1,19,880/year = ₹9,990/month MRR.
The Five Components of MRR
Understanding MRR movement means breaking it into parts:
| Component | Definition | Sign |
|---|---|---|
| New MRR | From brand-new customers | + |
| Expansion MRR | Upgrades from existing customers | + |
| Reactivation MRR | Previously churned customers returning | + |
| Contraction MRR | Downgrades from existing customers | − |
| Churned MRR | Cancellations | − |
How to Use the Calculator
- Enter your current active subscriptions by plan tier
- Or enter component MRR values (new, expansion, contraction, churn) for the month
- Get total MRR, net new MRR, MoM growth rate, and ARR projection
MRR Movement Example
A SaaS product, January to February:
| Component | Amount |
|---|---|
| New MRR | +₹45,000 |
| Expansion MRR | +₹12,000 |
| Reactivation MRR | +₹3,000 |
| Contraction MRR | −₹8,000 |
| Churned MRR | −₹22,000 |
| Net New MRR | +₹30,000 |
MRR vs Revenue
MRR is not accounting revenue. A customer who pays ₹1,19,880 annually upfront gives you ₹1,19,880 in cash but ₹9,990/month in MRR. Revenue recognition timing differs from MRR — this matters for bookkeeping and investor reporting.
Never mix MRR with one-time revenue. If you sell professional services alongside a subscription, keep them separate. Blended MRR that includes one-time fees is misleading — it'll look like growth when it's actually lumpy project work.
The Quick MRR Health Scorecard
- MoM growth > 10%: Hypergrowth phase
- MoM growth 5–10%: Healthy early-stage growth
- MoM growth 2–5%: Stable, needs acceleration
- Expansion MRR > Churned MRR: Land-and-expand is working
- Churned MRR > New MRR: The business is shrinking in real terms
Do one-time setup fees count toward MRR?
No. MRR is only recurring, predictable revenue. Setup fees, one-time add-ons, and project fees belong in separate revenue categories. Including them inflates MRR and makes it harder to forecast future cash flows.
How is MRR different from ARR?
ARR (Annual Recurring Revenue) = MRR × 12. ARR is used for companies with predominantly annual contracts where monthly fluctuations aren't meaningful. B2B SaaS with enterprise deals usually reports ARR. High-velocity B2C subscriptions report MRR.
What's a good MRR growth rate for early-stage SaaS?
In the first 1–2 years, 15–20% MoM is common for companies that find product-market fit. This is sometimes called "T2D3" territory (triple, triple, double, double, double ARR over 5 years). Beyond $1M ARR, 10–15% MoM is strong; above $10M ARR, 5–8% MoM sustains very fast annual growth.