SaaS MRR Calculator and Benchmarks

This guide introduces two interactive SaaS MRR calculators: one simple and one advanced. Both tools let you calculate MRR in real time, using essential inputs to analyze Net New MRR, Contraction, Churn, ARPU, and other key components that impact your bottom line.

Simple MRR Formula:
MRR = Total Number of Active Customers × Average Revenue per Customer

Advanced MRR Formula:
ARR = Gross New MRR + Expansion MRR + Reactivation MRR − Contraction MRR − Churn MRR + Previous Month's MRR

Components of an MRR Calculator

1. Gross New MRR
   Represents the MRR generated from new customers in a given month.
2. Expansion MRR
   Measures the added revenue from existing customers, including upgrades or additional products purchased.
3. Contraction MRR
   Captures the MRR lost due to downgrades, such as customers reducing their subscription plans or seat counts.
4. Churn MRR
   The totalMRR lost from customers who cancel their subscriptions.
5. Reactivation MRR
   Revenue from customers who re-subscribe after canceling.
6. Previous MRR
   The total MRR from the last period, serving as a base to build on.
7. Total Number of Active Customers
   Total number of customers that have paid money in that month.
8. Average Revenue per Customer
   Revenue each of the customers paid that given month.
   

SaaS MRR Calculator: Simple and Advanced

Enter your figures to instantly calculate MRR based on these components. Adjust any input, and see how each change affects your bottom line.

How Churnkey Can Help Improve MRR?

We’re everything your customer-obsessed team needs to improve retention, automatically. With Churnkey, companies save 20-40% of the revenue they would have otherwise lost to churn. If you aren't yet sure how retention impacts your business, use our free churn metrics product.

To improve your MRR, sign up for Churnkey or book a demo.

MRR Benchmarks

After Launching

After $100k MRR

By Funding Round

Additional Reading

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Customer Exit Survey: 21 Templates, Questions, and Best Practices

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Understanding the FTC’s New Negative Option Rule and Its Impact on Free Trials

One of the most important clarifications in the updated rule is that negative option features don’t always start with an actual purchase — free trials are a key example.

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How Churn Affects SaaS Company Valuations

Whether you are preparing to sell your SaaS company or want to know its worth, churn rate carries significant weight in your company’s valuation.

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