Quick answer
MRR Calculator: what it calculates
MRR Calculator calculates ending mrr from starting mrr, new customers and arpa. The core method is Ending MRR = starting MRR + new MRR + expansion MRR - contraction MRR - churned MRR.
Business Calculators
MRR Calculator
Use this MRR calculator to estimate ending MRR, net new MRR, MRR growth rate, and ARR run rate for a subscription business.
Reviewed May 25, 2026EstimateFormula shown
ResultEnding MRR
InputsStarting MRR, New customers, ARPA, Expansion, Churned MRR
FormulaMRR formula
Live calculator
MRR
Ending MRR$44,090.00
$2,090.00 net new MRR.
MRR growth5.0%
$3,040.00 new-logo MRR before expansion and churn.
ARR run rate$529,080.00
Ending MRR multiplied by 12.
Formula
MRR formula
Ending MRR = starting MRR + new MRR + expansion MRR - contraction MRR - churned MRRUse the same monthly period for all inputs so new, expansion, contraction, and churn are comparable.
How to use
Steps
- Enter starting MRR.
- Add new customers and average revenue per account.
- Enter expansion, contraction, and churned MRR.
- Review ending MRR, net new MRR, growth rate, and ARR.
Example
Sample calculation
Starting MRR$42,000
Net new MRR$2,090
Ending MRR$44,090
Calculator use
Best for
- Use this MRR calculator to estimate ending MRR, net new MRR, MRR growth rate, and ARR run rate for a subscription business.
- Checking mRR formula with the formula and assumptions visible.
- Comparing the result with the sample calculation and benchmark table before using it elsewhere.
- Pricing, runway, cash flow, or work assumptions before an operating decision.
Before relying on it
Check first
- Using the ending mrr without confirming that starting mrr, new customers and arpa describe the same real-world case.
- Ignoring that use the same monthly period for all inputs so new, expansion, contraction, and churn are comparable.
- Relying on the number without checking whether the visible assumptions match the real-world task.
- Mixing cash and accounting profit, or monthly recurring items and one-time items.
Benchmarks
How to read the result
The calculator is a decision aid, not a fixed rule. Use the output to compare scenarios and document your assumptions. Benchmark ranges are broad planning heuristics unless this page names a specific source for the range.
Negative net newShrinking
Churn and contraction exceed new and expansion MRR.
Flat to modest growthStable
MRR is growing, but the growth rate may not support aggressive hiring.
Strong net newGrowing
New and expansion MRR materially exceed churn and contraction.
Calculator accuracy
Methodology and assumptions
The formula, inputs, example, and limitations are shown so the result is checkable, not just a number in a box.
Formula
Ending MRR = starting MRR + new MRR + expansion MRR - contraction MRR - churned MRR
Inputs used
Starting MRR, New customers, ARPA, Expansion, Churned MRR
Limitations
Results are estimates for quick planning and should be checked before important financial, legal, tax, health, or business decisions.
Last reviewed
May 25, 2026
Cite this page
Toolkit Shelf. MRR Calculator. Retrieved May 25, 2026, from https://toolkitshelf.com/tools/mrr-calculator
FAQ
Common questions
What is MRR?
MRR is monthly recurring revenue, usually used by subscription businesses to track normalized monthly revenue.
What is net new MRR?
Net new MRR is new MRR plus expansion MRR minus contraction and churned MRR.
How do I calculate ARR from MRR?
ARR run rate is commonly estimated by multiplying ending MRR by 12.
Can this replace accounting or legal advice?
No. Business calculators are scenario tools. Contracts, taxes, payment timing, accounting treatment, refunds, and legal requirements can change decisions.
What should I do after using a business calculator?
Save the assumptions, compare a conservative scenario, and review the result with actual books, contracts, or an advisor before making a high-stakes decision.
Why might another calculator show a different result?
Different calculators may use different rounding, assumptions, default rates, formulas, or input timing. Compare the visible formula and inputs before relying on the number.