MRR Calculator
Calculate and track your Monthly Recurring Revenue (MRR) with our comprehensive calculator. Break down your revenue streams, analyze growth, and understand your SaaS metrics better.
Results
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Quick Tips:
- Enter all values in monthly terms
- For annual plans, divide by 12 first
- Use positive numbers for all inputs
- Exclude one-time fees
Understanding Your MRR
MRR Components
- • New MRR from new customers
- • Expansion MRR from upgrades
- • Contraction MRR from downgrades
- • Churned MRR from cancellations
Key Metrics
- • Net New MRR
- • MRR Growth Rate
- • Net Revenue Retention
- • MRR Churn Rate
SaaS Metrics Calculators
Calculate key SaaS metrics and performance indicators for your software business.
How to Calculate MRR
Basic MRR Calculation
MRR = Sum of all paying customers' monthly recurring charges
- 1. List all active subscriptions
- 2. Normalize non-monthly subscriptions to monthly values
- 3. Add all normalized monthly values
- 4. Account for discounts and promotions
Net MRR Calculation
Net New MRR = New MRR + Expansion MRR - Contraction MRR - Churned MRR
- 1. Calculate new customer MRR
- 2. Add revenue from upgrades
- 3. Subtract downgrades
- 4. Subtract churned customer revenue
MRR Calculator FAQs
How do I handle annual subscriptions in MRR?
Divide the annual subscription value by 12 to get the monthly value. For example, a $1,200 annual plan would count as $100 in MRR.
Should I include one-time fees in MRR?
No, MRR should only include recurring revenue. One-time fees like setup fees or professional services should be tracked separately.
What's a good MRR growth rate?
A healthy MRR growth rate varies by company stage and market, but many SaaS companies aim for 10-20% monthly growth in early stages and 5-15% in later stages.
What is a good MRR churn rate?
A good MRR churn rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 5% churn rate, while a mature company with a low-value product might aim for a 10% churn rate.
What is a good net revenue retention rate?
A good net revenue retention rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 100% net revenue retention rate, while a mature company with a low-value product might aim for a 90% net revenue retention rate.
What is a good monthly churn target?
A good monthly churn target depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 5% monthly churn rate, while a mature company with a low-value product might aim for a 10% monthly churn rate.
What is a good MRR growth rate?
A good MRR growth rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 10% MRR growth rate, while a mature company with a low-value product might aim for a 5% MRR growth rate.
What is a good net revenue retention rate?
A good net revenue retention rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 100% net revenue retention rate, while a mature company with a low-value product might aim for a 90% net revenue retention rate.
What is a good MRR expansion rate?
A good MRR expansion rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 10% MRR expansion rate, while a mature company with a low-value product might aim for a 5% MRR expansion rate.
What is a good MRR churn rate?
A good MRR churn rate depends on the SaaS company's business model and growth stage. For example, a startup with a high-value product might aim for a 5% churn rate, while a mature company with a low-value product might aim for a 10% churn rate.
The Ultimate Guide to Growing Monthly Recurring Revenue (MRR)
Understanding MRR: The River Analogy
Think of your MRR like a river system. New customer revenue is like fresh rainfall, expansion revenue is like tributaries joining the main river, while churn is like evaporation. Your goal is to create a mighty river that grows stronger over time, fed by multiple streams (revenue sources) and protected from losses (churn). Just as a river needs constant sources of water, your MRR needs consistent new business and expansion revenue to thrive.
The Power of Compound MRR Growth
Real-world Example:
A SaaS company starting with:
- $100,000 MRR
- 15% monthly growth rate
- 5% expansion revenue
- 2% churn rate
Can reach $1M MRR in just 18 months through compound growth. Small improvements in growth and retention create massive long-term impacts.
10 Proven Strategies to Grow MRR
1. Optimize Your Pricing Strategy
Think of pricing like a thermostat - it needs constant adjustment to maintain optimal performance:
- Implement value-based pricing
- Create multiple pricing tiers
- Test price sensitivity
- Add usage-based components
2. Build Expansion Revenue Paths
Like a well-designed video game, create natural progression paths:
Growth Opportunities:
- Seat-based upgrades
- Feature upgrades
- Usage-based expansion
- Add-on services
3. Implement Revenue Retention Strategies
Like maintaining a healthy garden, focus on nurturing existing revenue:
- Proactive customer success
- Regular health checks
- Usage monitoring
- Value demonstrations
4. Create Predictable Revenue Streams
Build your MRR machine like a reliable factory production line:
Revenue Engine Components:
- Standardized sales process
- Automated lead nurturing
- Systematic upsell programs
- Renewal automation
5. Leverage Product-Led Growth
Make your product your best salesperson:
- Self-service expansion
- In-product upsells
- Viral features
- Usage-based triggers
Advanced MRR Growth Tactics
6. Implement Annual Contract Incentives
Create compelling reasons to commit long-term:
- Annual discount offers
- Premium features for annual plans
- Success program access
- Price lock guarantees
7. Revenue Expansion Automation
Build systematic growth into your product:
Automation Strategies:
- Usage-based triggers
- Feature discovery prompts
- Upgrade recommendations
- Success milestone celebrations
Case Study: Growing MRR by 300%
A B2B SaaS company grew their MRR from $100K to $400K in 12 months by:
- Implementing value-based pricing
- Creating clear upgrade paths
- Automating expansion triggers
- Focusing on annual contracts
- Building product-led growth loops
Results:
- Net revenue retention increased to 130%
- Annual contracts increased by 200%
- Expansion revenue grew by 85%
- Average contract value up by 45%
Action Plan Template
Use this 30-60-90 day plan to accelerate your MRR growth:
First 30 Days:
- Analyze current MRR composition
- Identify expansion opportunities
- Review pricing strategy
- Map upgrade paths
Days 31-60:
- Implement expansion triggers
- Launch annual plan incentives
- Optimize onboarding for upgrades
- Build automated nurture flows
Days 61-90:
- Roll out new pricing tiers
- Launch product-led growth features
- Implement success programs
- Review and optimize results
MRR Benchmarks
15%
Target Monthly Growth
100%
Net Revenue Retention
<5%
Monthly Churn Target