The Pulse of Your Subscription Business
Monthly Recurring Revenue (MRR) is more than just a number—it is the best indicator of your company's momentum. However, looking at "Total MRR" alone can be misleading. To truly understand your growth, you need to break it down into its movements: inflows (New, Expansion) and outflows (Churn, Contraction).
This MRR Calculator provides a granular view of your revenue waterfall. By tracking how much revenue you are gaining from upsells versus how much you are losing to downgrades, you can pinpoint exactly where to focus your efforts—whether that's Sales (New Biz) or Customer Success (Retention).
Expansion Revenue
The secret to exponential growth. Selling more to existing customers is 5x cheaper than acquiring new ones.
Net New MRR
The true measure of growth speed. It answers the question: "How much bigger did we get this month?"
ARR Valuation
Most SaaS companies are valued at a multiple of their Annual Recurring Revenue (MRR x 12).
The Revenue Equation
To calculate your specific growth for the month, use the standard SaaS equation:
Component Definitions:
- New Business: Revenue from brand new customers acquired this month.
- Expansion: Existing customers who upgraded to a higher plan or bought add-ons.
- Reactivation: Former customers who came back.
- Contraction: Customers who downgraded their plan but stayed.
- Churn: Revenue lost from customers who cancelled completely.