Net new MRR adds up your new and expansion revenue, then subtracts churn. This month you grew the base by $2,200, a 11.1% lift.
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Monthly recurring revenue, MRR, is the predictable subscription revenue your business earns each month. It is the heartbeat metric for any SaaS or subscription company because it strips out one-off fees and shows the revenue you can count on repeating. The calculator above turns your customer count, pricing and monthly movements into total MRR, net new MRR, growth rate and ARR in one pass.
The base formula is simple: multiply your number of active customers by the average revenue per account per month, often called ARPA. With 200 customers paying $99 each, your MRR is $19,800. The one rule that trips people up is annual plans. A customer on a $1,188 yearly contract is worth $99 of MRR, not $1,188, so divide every annual price by 12 before adding it to the total. Do the same for quarterly or multi-year deals: always normalize to a single month.
If your pricing varies by tier, sum the MRR of each plan rather than guessing a blended ARPA. The cleaner your per-plan numbers, the more your MRR reflects reality instead of an average that hides churn in your cheaper tiers.
Net new MRR is the change in your recurring revenue across a single month. It has three moving parts: new MRR from fresh customers, expansion MRR from upgrades and add-ons, and churned MRR from cancellations and downgrades. The formula is new plus expansion minus churned. In the example above, $2,500 in new and $600 in expansion against $900 of churn leaves $2,200 of net new MRR. When churn is bigger than new plus expansion, net new goes negative and your base is shrinking, which is the signal to fix retention before pouring more into acquisition.
ARR, annual recurring revenue, is simply MRR multiplied by 12. The two describe the same revenue at different zoom levels. Use MRR for month-to-month operating decisions, since it reacts fast to churn, expansion and new sales. Use ARR when you talk to investors or board members, or when most of your contracts are annual and a yearly figure reads more naturally. Neither should include non-recurring items like setup fees, professional services or one-time usage spikes. Keep those out of both numbers so the metric stays a true measure of repeatable revenue.
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