---
title: "SaaS MRR calculator and benchmarks"
description: "With our interactive MRR calculator, discover how each component—new MRR, expansion, churn, and more—affects your bottom line. Learn why reducing churn, even by a small percentage, can create significant long-term gains, and explore how benchmarks help you set ambitious, achievable growth targets."
canonical: "https://churnkey.co/blog/mrr-calculator"
category: "blog"
author: "Team Churnkey"
author_role: "Retention research"
date_published: "2024-10-26"
last_updated: "2024-11-22"
---

# SaaS MRR calculator and benchmarks

By Team Churnkey, Retention research · Published 2024-10-26

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.

### Simple MRR calculator

### Advanced MRR calculator

#### Advanced MRR calculator formula explanation

Suppose you have the following metrics for this month:

-   ****Gross New MRR**** = $2,00,000
-   ****Expansion MRR**** = $60,000
-   ****Contraction MRR**** = $10,000
-   ****Churn MRR**** = $180,000
-   ****Reactivation MRR**** = $5,000
-   ****Previous MRR**** = $700,000

Here’s how these components contribute to your ****Total MRR**** and ****Net New MRR****:

****Calculating Net New MRR****:

Net New MRR = Gross New MRR + Expansion ARR + Reactivation MRR − Contraction MRR − Churn MRR = 75,000

****Calculate Total MRR****:

Total MRR = Previous month's MRR + Net New MRR = 775,000

## 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](/churn-metrics) product.

To improve your MRR, [sign up for Churnkey](https://app.churnkey.co/register?ref=churnkey.co) or [book a demo](/schedule-a-demo).

## MRR benchmarks

**After Launching**

| Time to $100k MRR | Good | Great |
| --- | --- | --- |
| After Launching | 1 year | 9 months |

**After $100k MRR**

| Year | Good Growth Rate | Great Growth Rate |
| --- | --- | --- |
| Year 1 | 3x YoY (10% MoM) | 5x YoY (16% MoM) |
| Year 2 | 3x YoY (10% MoM) | 4x YoY (12% MoM) |
| Year 3 | 2x YoY (5% MoM) | 3x YoY (10% MoM) |
| Year 4 | 2x YoY (5% MoM) | 2.5x YoY (8% MoM) |
| Year 5 | 2x YoY (5% MoM) | 2.5x YoY (8% MoM) |

**By Funding Round**

| Funding Round | Good Growth Rate | Great Growth Rate | Below Expectations |
| --- | --- | --- | --- |
| Series A | $100k MRR, 2-3x YoY | $100k MRR, 3x+ YoY | <$100k MRR, <2x YoY |
| Series B | $500k MRR, 2-3x YoY | $500k MRR, 3x YoY | <$500k MRR, <2x YoY |
| Series C+ | $2M MRR, 1-2x YoY | $2M MRR, 2-3x YoY | <$2M MRR, <1x YoY |

## Additional reading

[Retention Cohort Analysis: Four Simple Ways](/blog/cohort-retention-analysis)

[Retention automation separates growth heroes from growth zeroes](/blog/retention-automation)

[Calculate Customer Retention Rate and Revenue Retention \[Calculator\]](/blog/customer-retention-rate-calculator)

[Customer Retention Curve: Calculator, Definition, Examples](/blog/retention-curves)

[Customer Exit Survey: 21 Templates, Questions, and Best Practices](/blog/customer-exit-survey)

[Understanding the FTC’s New Negative Option Rule and Its Impact on Free Trials](/blog/ftc-negative-option-rule-free-trials)

[How Churn Affects SaaS Company Valuations](/blog/how-churn-affects-saas-company-valuations)