Monthly Recurring Revenue (MRR) Growth Calculator
Monthly Recurring Revenue is the heartbeat of any subscription business, and understanding how it grows — not just that it grew — is what separates disciplined operators from optimistic ones. Total MRR movement in any month is the sum of four forces: new MRR from fresh customers, expansion MRR from upgrades and seat additions, contraction MRR from downgrades, and churned MRR from cancellations. Netting these together reveals your net new MRR and the true growth rate of the business. Two companies can post the same headline growth while having wildly different health: one fueled by durable expansion, the other masking heavy churn with expensive new sales. Enter your MRR movements to see exactly what is driving — or draining — your recurring revenue each month.
Your Numbers
Results
Results update live as you type. Estimates only — not financial, tax, or investment advice.
The Formula
Net New MRR = (New + Expansion MRR) − (Churned + Contraction MRR)
Understanding the Monthly Recurring Revenue (MRR) Growth Calculator
Decomposing MRR into its four components is the fastest way to diagnose the health of a subscription business. Strong, efficient companies grow increasingly from expansion MRR — existing customers naturally spending more — which costs far less than acquiring new logos. When growth depends entirely on new MRR while churned and contraction MRR climb, you are running up a down escalator, spending heavily just to stay flat.
Your net new MRR and growth rate also feed directly into forecasting and fundraising. Investors model your trajectory from the consistency and composition of MRR movements, and a business with high expansion and low churn commands a premium valuation because its revenue compounds. Track these numbers every month, watch the trend in each component, and you will spot problems — a creeping churn rate, softening expansion — long before they show up in the top-line number.
Frequently Asked Questions
What is net new MRR?
Net new MRR is the true change in recurring revenue in a month: new MRR plus expansion MRR, minus churned MRR and contraction MRR. It nets all four movements into a single figure that shows whether your recurring revenue actually grew or shrank, regardless of how busy the sales team was.
Why is expansion MRR so important?
Expansion MRR — revenue from existing customers upgrading or adding seats — is the most efficient growth there is, because you have already paid to acquire those customers. Businesses that grow heavily through expansion enjoy higher margins, lower CAC pressure, and net revenue retention above 100%, which investors prize.
What is a good MRR growth rate?
It depends on stage. Early-stage startups may target 10–20% month-over-month, while larger companies growing off a bigger base celebrate lower percentages. What matters most is the quality of growth — durable expansion and low churn beat fast growth propped up by expensive, high-churn new sales.