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MRR calculator (monthly and annual recurring revenue)

From the MRR you started the month with to the MRR you ended it with, every movement and rate explained.

MRR and ARR calculator

Monthly subscription revenue, excluding VAT, from customers paying on the first day of the month. Count an annual plan as one twelfth.

£

Subscriptions from customers who started this month, including those who came back after cancelling.

£

Increases from existing customers: upgrades, extra seats, price rises.

£

Decreases from customers who stay: downgrades, fewer seats, discounts.

£

The MRR of the customers who cancelled this month.

£

Optional: for the average revenue per account (ARPA).

Ending MRR

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Enter the MRR at the start of the month to see the result.

Starting MRR
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Gained MRR (new + expansion)
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Lost MRR (contraction + churned)
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Net new MRR
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ARR (ending MRR × 12)
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MRR growth for the month
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Gross MRR churn
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Net revenue retention (NRR)
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Quick ratio (gains ÷ losses)
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Recent calculations

Nothing yet: copy, export or save a calculation to find it here.

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How it works

Enter your monthly recurring revenue (MRR) at the start of the month and what happened during it: new subscriptions, upgrades, downgrades and cancellations. You get your ending MRR, annual recurring revenue (ARR), MRR growth, gross MRR churn, net revenue retention (NRR), the quick ratio and, if you give a customer count, the average revenue per account. All amounts are excluding VAT.

Start from your MRR on the first day of the month

Add up the monthly value, excluding VAT, of every subscription running on the first day of the month. Count an annual plan as one twelfth of its price and a quarterly plan as one third. Leave out set-up fees and one-off work, which do not recur, and VAT, which you account for to HMRC.

Sort the month’s movements

New MRR comes from customers who joined this month; count returning customers here too. Expansion MRR comes from existing customers who upgrade or add seats. Contraction MRR comes from customers who stay but pay less. Churned MRR is what the customers who cancelled were paying. A blank field counts as zero.

Read the rates

MRR growth, gross MRR churn and net revenue retention are measured against the starting MRR, so they are not defined when it is zero. The quick ratio sets what you gained against what you lost: above 1, MRR is growing. Average revenue per account (ARPA) divides the ending MRR by the number of paying customers.

Rounding and reuse

Amounts are exact to the penny. Rates and the quick ratio are rounded to two decimal places and ARPA to the nearest penny, with halves rounded away from zero. Copy the workings in one click, export the result as a CSV file or save it to Priostack.

Ending MRR = starting MRR + new MRR + expansion − contraction − churned.

ARR = ending MRR × 12.

MRR growth = (ending MRR − starting MRR) ÷ starting MRR.

Gross MRR churn = (contraction + churned) ÷ starting MRR.

Net revenue retention (NRR) = (starting MRR + expansion − contraction − churned) ÷ starting MRR.

Quick ratio = (new MRR + expansion) ÷ (contraction + churned).

ARPA = ending MRR ÷ paying customers.

Example: a software business starting the month on £8,000 of MRR

On 1 March, running subscriptions bring in £8,000 a month excluding VAT. During March new customers add £950, existing customers upgrade by £300, others downgrade by £120 and cancellations take away £410. Gained MRR is £1,250.00 and lost MRR £530.00, so net new MRR is £720.00 and ending MRR £8,720.00: an ARR of £104,640.00. MRR grew by 9%, gross MRR churn was 6.63%, net revenue retention 97.13% and the quick ratio 2.36. With 109 paying customers, ARPA is £80.00.

Frequently asked questions

What is the difference between MRR and ARR?

MRR (monthly recurring revenue) is the monthly value, excluding VAT, of the subscriptions running at a given date. ARR (annual recurring revenue) is the same figure over a year: MRR × 12. It is a run rate, not what you will actually earn over the year: it assumes today’s subscriptions stay as they are for twelve months.

Does my ARR decide when I must register for VAT?

No. You must register if your VAT taxable turnover for the last 12 months goes over £90,000, or if you expect your taxable turnover in the next 30 days alone to go over £90,000. That is turnover from every taxable sale, recurring or not. An ARR of £104,640, as in the example, does not by itself put you over the threshold, and an ARR below it does not keep you under it.

How do I count annual plans and discounts?

Bring everything back to a month: a £1,200 annual plan excluding VAT counts as £100 of MRR, and so does a £300 quarterly plan. Use the price you actually charge, after any discount: a discount given to an existing customer is contraction MRR, and the end of that discount is expansion MRR.

What does net revenue retention above 100% mean?

That upgrades from existing customers more than made up for downgrades and cancellations: without a single new customer, MRR would still have grown. For example, £10,000 of starting MRR with £800 of expansion and £500 lost gives a net revenue retention of 103%. This calculator gives it for one month; an annual figure compares the MRR of the same group of customers twelve months apart.

Why are some rates blank?

Growth, churn and retention divide by the starting MRR, so they cannot be worked out when it is zero, in your first month of trading for example. Likewise, the quick ratio divides gains by losses and does not exist in a month with no losses.

Sources

  1. GOV.UK: Register for VAT, when to register (the £90,000 threshold, checked on 11 November 2026) (10 October 2024)
  2. GOV.UK: Who should register for VAT (VAT Notice 700/1), the test on the next 30 days alone (5 August 2026)
  3. GOV.UK: How VAT works (VAT you charge is reported and paid to HMRC) (24 October 2024)

This calculator gives general information, not legal, tax, financial or accounting advice. MRR and ARR are management measures, not accounting figures: for your accounts and tax returns, ask an accountant or check HMRC’s guidance.

Last reviewed: