MRR & ARR Calculator
The numbers your board actually asks about. Calculate gross MRR, net MRR, ARR, net revenue retention, and growth rate — and see whether you're growing or just treading water.
MRR and ARR: The Only Revenue Metrics That Matter
Revenue is vanity, MRR is sanity. Here's how to calculate it correctly and what the numbers tell you about the health of your business.
The Five Components of MRR
MRR isn't one number — it's five numbers working together. Understanding each component tells you exactly where your revenue is coming from and where it's leaking.
| Component | What It Measures | Why It Matters |
|---|---|---|
| New MRR | Revenue from new customers | Your acquisition engine output |
| Expansion MRR | Upsells, cross-sells, upgrades | How well you grow accounts |
| Churned MRR | Revenue from cancelled accounts | The leak in your bucket |
| Contraction MRR | Revenue lost to downgrades | Often a warning sign before full churn |
| Reactivation MRR | Revenue from returning customers | Sometimes the easiest MRR to win |
Net Revenue Retention: The Metric Investors Love Most
NRR above 100% means your existing customers are generating more revenue over time — even without new sales. Companies with 120%+ NRR can grow even if they stop acquiring new customers. That's the ultimate sign of product-market fit and customer value alignment. See how we help SaaS companies hit these benchmarks →
