MRR / ARR calculator. Plus Quick Ratio.
Enter your plan mix and month movement (new, expansion, contraction, churn). Get MRR, ARR, net new MRR, MoM growth, and SaaS Quick Ratio with benchmark verdicts.
Movement, plans, cadence.
MRR, ARR, momentum.
MRR isn't one number. It's five.
Monthly recurring revenue is a single end-state number that hides five separate movements: new MRR (first-month subscriptions), expansion MRR (upgrades, seat adds, usage overages rolled into plan), contraction MRR (downgrades), churned MRR (cancellations), and reactivation MRR (returning customers). Summing them correctly yields Net New MRR; that is the number every SaaS board slide tracks. ARR is MRR times twelve, reported as a forward-looking run-rate.
The SaaS Quick Ratio, coined by Mamoon Hamid, is the single best one-number snapshot of growth efficiency: (new + expansion) divided by (contraction + churn). Venture-backed SaaS targets 4 or higher. Below 1 means the business is shrinking. Public markets reward companies with Quick Ratios above 2 and NRR above 120 percent with premium revenue multiples.
Tools in the same cluster: Churn Calculator for the retention side. LTV Calculator for lifetime value math. CAC Calculator for acquisition cost.
Five answers.
How is MRR calculated?
MRR equals the sum of all subscription revenue normalized to a monthly cadence. A customer on a $1,200 annual plan contributes $100 MRR. A customer on a $49 monthly plan contributes $49 MRR. Sum across all active subscriptions at the end of the month. Exclude one-time fees, setup charges, and usage overages; those are reported separately and do not belong in MRR. ARR is simply MRR multiplied by 12.
What is Net New MRR?
Net New MRR equals new MRR + expansion MRR - contraction MRR - churned MRR in a given month. It is the month's net movement on the recurring-revenue base. A company adding $10,000 in new, $3,000 in expansion, and losing $1,500 to contraction and $2,000 to churn has $9,500 of Net New MRR. Positive Net New MRR means the business is growing; negative means it is shrinking regardless of top-of-funnel activity.
What is the SaaS Quick Ratio?
Quick Ratio is (new MRR + expansion MRR) divided by (contraction MRR + churned MRR). It measures how efficiently growth outpaces retention losses. A Quick Ratio of 4 means you add $4 of new or expansion revenue for every $1 of contraction or churn. Below 1 means the business is shrinking. 1 to 2 is stagnating. 2 to 4 is healthy. Above 4 is best-in-class; venture-scale companies typically post Quick Ratios of 4 or higher.
How do I calculate MoM growth rate?
MoM (month-over-month) growth is (current month MRR - prior month MRR) divided by prior month MRR, expressed as a percentage. A company going from $50,000 MRR to $55,000 grew 10 percent MoM. Best-in-class early-stage SaaS targets 10 to 20 percent MoM growth; past $1M ARR, 5 to 10 percent MoM is strong; past $10M ARR, 3 to 7 percent MoM is the range Wall Street pays premium multiples for. Compounding 10 percent MoM over a year triples ARR.
Does this tool save my data?
No. Every value you enter lives in memory for this browser tab only. Nothing is transmitted to a server, stored in a database, or synced. Close the tab and the data is gone.
Quick Ratio under 2?
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