💰 SaaS MRR Calculator
MRR is the pulse of a SaaS business. Enter customers, ARPU, expansion, and churn to see where revenue is heading.
How MRR Works
MRR (monthly recurring revenue) normalizes all subscription revenue into a monthly figure. It is the single number investors, acquirers, and founders track — ARR is just MRR × 12.
The Formulas
Net Change = Expansion − Churn
NRR = (Starting MRR + Expansion − Churn) ÷ Starting MRR
Net Revenue Retention (NRR) is the quality metric: above 100% means existing customers grow revenue faster than churn eats it (best-in-class SaaS: 110–130%). Below 100% means you are on a treadmill — growth depends entirely on new sales.
Worked Example
500 customers × $49 ARPU = $24,500 MRR ($294,000 ARR). With 5% expansion ($1,225) and 3% churn ($735), net change = +$490/month → next month ≈ $24,990 MRR. NRR = 102% — healthy, expansion-led growth.
MRR Hygiene: Bookings vs. Billings vs. Revenue
Founders routinely conflate three numbers: bookings (contracts signed), billings (cash invoiced), and MRR (revenue recognized monthly). Only MRR measures the business's run-rate — a $120,000 annual deal signed today is $10,000 MRR, not $120,000 of anything this month. Track contraction MRR (downgrades) separately from churn (cancellations); downgrades are often the bigger, quieter leak. Segment MRR by cohort: if new cohorts retain worse than old ones, aggregate NRR hides a decaying product. And pair MRR with the Rule of 40 (growth rate + profit margin ≥ 40%) — hypergrowth at any cost eventually meets arithmetic. Investors prize predictable MRR: multi-year contracts, annual prepay, and expansion-heavy NRR above 110% command premium valuations over flat, churn-heavy revenue at the same total.
The growth math that matters: at 100% NRR, every new customer is permanent progress; at 90% NRR, you must replace 10% of revenue yearly just to stand still — growth gets exponentially harder as you scale. This is why investors interrogate NRR before growth rate: retention is the compounding engine, acquisition is just the fuel.
Frequently Asked Questions (FAQs)
What is the difference between MRR and ARR?
MRR is monthly recurring revenue; ARR = MRR × 12. Use MRR for operations, ARR for fundraising and valuation conversations.
What is good net revenue retention?
100%+ is good; 110–130% is best-in-class (expansion outpaces churn). Below 90% signals serious churn or downsell problems.
Should one-time fees count in MRR?
No — MRR is recurring revenue only. Track one-time setup/professional-services fees separately to avoid inflating the core metric.
How do annual plans affect MRR?
Divide the annual contract by 12 and recognize it monthly. A $1,188 annual plan = $99 MRR — never book the full amount in one month.
What MRR multiple do SaaS companies sell for?
Growth-stage SaaS: roughly 5–10× ARR depending on growth rate and NRR; slower or churning businesses trade much lower.
Last updated: September 2026
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Last updated: September 2026