--- title: "MRR calculator" url: "https://trialvalid.com/mrr-calculator.md" canonical_url: "https://trialvalid.com/mrr-calculator" last_updated: "2026-10-19" type: "tool" summary: "Starting at $40,000, a month with $6,000 new and $2,000 expansion MRR ends at $46,000, an ARR of $552,000." related: ["https://trialvalid.com/churn-rate-calculator.md", "https://trialvalid.com/customer-lifetime-value-calculator.md", "https://trialvalid.com/trial-conversion-rate-calculator.md", "https://trialvalid.com/failed-payment-recovery-calculator.md", "https://trialvalid.com/saas-metrics.md"] --- # MRR calculator > **For AI agents:** the complete index of TrialValid pages is [llms.txt](https://trialvalid.com/llms.txt). Every page is also served as markdown at its URL plus .md. Starting at $40,000, a month with $6,000 new and $2,000 expansion MRR ends at $46,000, an ARR of $552,000. Example with the default inputs: | Input | Value | | --- | --- | | Starting MRR | 40000 | | New MRR | 6000 | | Expansion MRR | 2000 | | Contraction MRR | 800 | | Churned MRR | 1200 | | Result | Value | | --- | --- | | Net new MRR | +$6,000 | | Ending MRR | $46,000 | | ARR | $552,000 | | Growth | 15.0% | | Quick ratio | 4.0 | Working: 1. Net new MRR is $6,000 new plus $2,000 expansion, minus $800 contraction and $1,200 churned, which is +$6,000. 2. Ending MRR is the $40,000 you started with plus $6,000, which is $46,000. 3. ARR is ending MRR times 12, which is $552,000. 4. Growth is net new +$6,000 divided by starting $40,000, which is 15.0%. 5. The quick ratio is gains of $8,000 divided by losses of $2,000, which is 4.0. ## How the calculator works Monthly recurring revenue moves for four reasons. New customers add to it, existing customers who upgrade or add seats add expansion, customers who downgrade subtract contraction, and customers who cancel subtract churned MRR. Enter the month's five figures and the tool nets them, adds the result to the starting balance, and reads off the ending MRR, the annual run rate, the growth rate and the quick ratio. In symbols: `net new = new + expansion - contraction - churned`, `ending = starting + net new`, `ARR = ending x 12`, `growth = net new / starting`, `quick ratio = (new + expansion) / (contraction + churned)`. Enter contraction and churned as positive amounts. The tool subtracts them for you. ## Worked examples A growing month: $25,000 of MRR at the start, $3,500 new, $900 of expansion, $400 of contraction and $1,100 churned. Net new MRR is +$2,900, so the month ends at $27,900, growth of 11.6% and a quick ratio of 2.9. | Line | Amount | | --- | --- | | Starting MRR | $25,000 | | New MRR | $3,500 | | Expansion MRR | $900 | | Contraction MRR | $400 | | Churned MRR | $1,100 | | Net new MRR | +$2,900 | | Ending MRR | $27,900 | | ARR | $334,800 | | Growth | 11.6% | | Quick ratio | 2.9 | A shrinking month: $80,000 at the start, with $3,000 of contraction and $6,500 churned outweighing $4,000 new and $1,500 expansion. Net new MRR is -$4,000, ending MRR is $76,000 and growth is -5.0%. A quick ratio under 1.0, here 0.6, means the month lost more than it gained. | Line | Amount | | --- | --- | | Starting MRR | $80,000 | | New MRR | $4,000 | | Expansion MRR | $1,500 | | Contraction MRR | $3,000 | | Churned MRR | $6,500 | | Net new MRR | -$4,000 | | Ending MRR | $76,000 | | ARR | $912,000 | | Growth | -5.0% | | Quick ratio | 0.6 | ## Turning plan prices into MRR MRR counts every customer at a monthly amount, so a plan billed less often is spread over the months it covers and rounded half up to the cent. The table shows common billing periods. Add the monthly equivalents of every active plan to get the starting MRR you enter above. | Billing period | Price charged | Months covered | Monthly MRR | | --- | --- | --- | --- | | Monthly plan | $49 | 1 | $49 | | Quarterly plan | $150 | 3 | $50 | | Six month plan | $290 | 6 | $48.33 | | Annual plan | $1,200 | 12 | $100 | | Two year plan | $2,000 | 24 | $83.33 | ## Edge cases and how the tool treats them - With no contraction and no churn, losses are zero and the quick ratio cannot be divided. The tool shows "No losses, undefined" instead of a number, and the other results still work (ending MRR $48,000 at the defaults). - A starting MRR of zero hides growth, because there is nothing to grow from. At the defaults with a zero start the tool shows "Not defined" for growth and still reports ending MRR of $6,000. - Net new MRR can be negative. The shrinking example above ends at $76,000 and shows -$4,000 as net new. - If losses are larger than everything that was available, ending MRR would be below zero. The tool says so and asks you to check the contraction and churned figures. - One time charges are not MRR. Setup fees, one off services and usage that does not repeat stay out of all five fields. - A trial adds nothing to MRR until its first payment. Count a customer as new MRR in the month the first charge succeeds, not the month the trial starts. ### How do MRR and ARR differ? ARR is ending MRR times 12. At the defaults, $46,000 of MRR is $552,000 of ARR. Use MRR for month to month movement and ARR when you describe the size of the recurring base. ### What is net new MRR? New plus expansion minus contraction minus churned. At the defaults that is $6,000 + $2,000 - $800 - $1,200, which is +$6,000. ### How is growth measured? Net new MRR divided by starting MRR. The defaults give +$6,000 over $40,000, which is 15.0% for the month. The tool divides by the start, not the end, so the rate matches what you began with. ### What does the quick ratio tell me? It compares what you added with what you lost. The defaults add $8,000 and lose $2,000, a quick ratio of 4.0. Above 1.0 the base grew. Below 1.0 it shrank. ### Where do annual plans go? Spread the price over the months it covers. An annual plan at $1,200 counts $100 a month, and a $2,000 two year plan counts $83.33 a month. Cash arrives up front, but MRR is spread evenly. ### Do trials count as MRR? No. A trial contributes nothing until the first payment succeeds. With a card held at sign-up, the customer becomes new MRR when the first charge goes through. The trial conversion rate calculator shows how many trials reach that point. ### Should failed payments reduce MRR? Only once a customer is lost. A renewal that fails and is recovered never leaves MRR. A renewal that is not recovered becomes churned MRR. The failed payment recovery calculator estimates what that costs each year. ## Related tools MRR changes only through the five lines above, so the [trial conversion rate calculator](https://trialvalid.com/trial-conversion-rate-calculator.md) covers where new MRR starts and the [churn rate calculator](https://trialvalid.com/churn-rate-calculator.md) covers where churned MRR comes from. The [failed payment recovery calculator](https://trialvalid.com/failed-payment-recovery-calculator.md) prices the churn that comes from declined cards, and the [customer lifetime value calculator](https://trialvalid.com/customer-lifetime-value-calculator.md) turns monthly churn into the value of a customer. The [SaaS metrics glossary](https://trialvalid.com/saas-metrics.md) defines MRR, ARR and expansion MRR in full. ## Related - [Churn Rate Calculator](https://trialvalid.com/churn-rate-calculator.md) - [Customer lifetime value calculator](https://trialvalid.com/customer-lifetime-value-calculator.md) - [Trial Conversion Rate Calculator](https://trialvalid.com/trial-conversion-rate-calculator.md) - [Failed payment recovery calculator](https://trialvalid.com/failed-payment-recovery-calculator.md) - [SaaS metrics glossary](https://trialvalid.com/saas-metrics.md)