MRR Calculator 2026 Monthly Recurring Revenue Tracker

Track MRR movements across five components, calculate your SaaS Quick Ratio, and project compound growth to target MRR.

Ending MRR
$226.0K
Net New MRR
$26.0K
MRR Growth
13.0%
Quick Ratio
3.36
Projected ARR
$2.71M
Months to Target
8 mo

SaaS Quick Ratio Breakdown

Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)

= ($25.0K + $12.0K) / ($8.0K + $3.0K) = 3.36

4.0+ = Great
Growth engine is firing
2.0 - 4.0 = Healthy
Sustainable growth
Below 2.0 = Warning
Leaky bucket

The Five Types of MRR Movement

New MRR

Revenue from brand-new customers signing their first contract. This is your acquisition engine.

Expansion MRR

Additional revenue from existing customers upgrading, adding seats, or increasing usage. The most capital-efficient source of growth.

Contraction MRR

Revenue lost from existing customers downgrading their plan or reducing seats. Often signals pricing or packaging issues.

Churned MRR

Revenue lost from customers who cancelled entirely. The most important number to minimise because it compounds against you.

Reactivation MRR

Revenue from previously churned customers who return. Often overlooked but can be meaningful for seasonal businesses or products with a try-cancel-return pattern.

MRR vs ARR: When to Use Each

SituationUse MRRUse ARR
Monthly operating reviewsYes - shows trendsNo
Board reportingSupporting detailYes - headline metric
Fundraising decksNoYes - industry standard
Churn analysisYes - monthly precisionAnnualised for context
Sales team targetsYes - actionable monthlyAnnual quotas

Related Calculators

ARR CalculatorChurn RateNRR Calculator2026 Benchmarks

Frequently Asked Questions

What is MRR in SaaS?
MRR (Monthly Recurring Revenue) is the predictable, recurring revenue a SaaS company earns every month from subscriptions. It normalises all contracts to a monthly value, making it the most useful operational metric for tracking growth month over month. Annual contracts are divided by 12. Quarterly contracts are divided by 3. One-time fees are excluded entirely.
What is the SaaS Quick Ratio?
The SaaS Quick Ratio measures growth efficiency by comparing revenue additions (new MRR + expansion MRR) to revenue losses (churned MRR + contraction MRR). A ratio of 4+ is considered excellent, meaning you add $4 of revenue for every $1 lost. A ratio of 2-4 is healthy. Below 2 indicates a leaky bucket where churn undermines growth. The Quick Ratio is more informative than headline growth rate because it reveals the quality of that growth.
What is the difference between MRR and ARR?
MRR is monthly recurring revenue. ARR is annual recurring revenue (MRR x 12 for the simple version). MRR is more operationally useful for tracking month-to-month changes and identifying trends early. ARR is what investors reference because it represents the annual scale of the business. Use MRR for internal dashboards and operational decisions. Use ARR for fundraising, board reporting, and industry benchmarks.
How do you calculate net new MRR?
Net new MRR = New MRR (from new customers) + Expansion MRR (from existing customers upgrading) minus Churned MRR (from cancelled customers) minus Contraction MRR (from existing customers downgrading). A positive net new MRR means the business is growing. The breakdown matters more than the total because it reveals whether growth comes from new acquisition or existing customer expansion.