CalculateY
Quick Answer
A SaaS company with 200 customers at $50/month average revenue, $2,000 in new MRR, $500 in churned MRR, and $300 in expansion MRR has a total MRR of $11,800 and an ARR of $141,600.
From new customers this month.
Lost from cancellations.
From upsells and upgrades.
Common Examples
| Input | Result |
|---|---|
| 200 customers, $50/mo avg, $2,000 new, $500 churned, $300 expansion | MRR $11,800, ARR $141,600, Net new $1,800 |
| 500 customers, $100/mo avg, $5,000 new, $3,000 churned, $1,000 expansion | MRR $53,000, ARR $636,000, Net new $3,000 |
| 1,000 customers, $25/mo avg, $1,500 new, $800 churned, $200 expansion | MRR $25,900, ARR $310,800, Net new $900 |
| 50 customers, $200/mo avg, $1,000 new, $200 churned, $500 expansion | MRR $11,300, ARR $135,600, Net new $1,300 |
| 100 customers, $75/mo avg, $0 new, $1,500 churned, $0 expansion | MRR $6,000, ARR $72,000, Net new -$1,500 |
How It Works
This calculator uses the standard MRR framework for subscription and SaaS businesses:
Base MRR = Number of Customers x Average Monthly Revenue per Customer
Net New MRR = New MRR + Expansion MRR - Churned MRR
Total MRR = Base MRR + Net New MRR
ARR = Total MRR x 12
MRR Growth Rate = (Net New MRR / Base MRR) x 100
Where:
- Base MRR = recurring revenue from the existing customer base at current pricing
- New MRR = additional revenue from customers acquired during the period
- Churned MRR = revenue lost from customers who canceled during the period
- Expansion MRR = additional revenue from existing customers who upgraded, added seats, or purchased add-ons
- Net New MRR = the net change in MRR from all three movement categories
- ARR = annualized version of MRR, commonly used for businesses with annual contracts or for high-level planning
MRR Components
Breaking MRR into components (new, churned, expansion) is essential for understanding growth dynamics. A company may have strong new MRR but still show slow total growth if churned MRR is high. Conversely, strong expansion MRR can offset churn and even produce net negative revenue churn, where the existing customer base generates more revenue over time despite some customers leaving.
When to Use ARR vs. MRR
MRR is the standard metric for month-to-month SaaS tracking. ARR is more common in enterprise SaaS where annual contracts are standard, and it is frequently used in fundraising and valuation discussions. ARR assumes current MRR remains constant for 12 months, which is a simplification.
Worked Example
A SaaS company has 200 active customers paying an average of $50/month. Base MRR = 200 x $50 = $10,000. This month, the company signs new customers contributing $2,000 in new MRR, loses $500 in churned MRR from cancellations, and gains $300 in expansion MRR from upgrades. Net new MRR = $2,000 + $300 - $500 = $1,800. Total MRR = $10,000 + $1,800 = $11,800. ARR = $11,800 x 12 = $141,600. MRR growth rate = $1,800 / $10,000 x 100 = 18.00%. This growth rate, if sustained monthly, represents rapid expansion.