How to use this calculator
- Enter starting MRR at the beginning of the month.
- Add new MRR from new customers.
- Add expansion MRR from upgrades or more seats.
- Subtract churned and contracted MRR.
Calculate monthly recurring revenue for a Series A SaaS company using starting MRR, new MRR, expansion, contraction, and churn. Use it to evaluate growth quality before fundraising.
Series A investors care about both total MRR and MRR movement quality. Strong net new MRR with low churn and meaningful expansion is healthier than growth driven only by new acquisition.
Exclude one-time setup fees and services revenue from MRR. Use only recurring subscription revenue.
Starting MRR of $200,000 plus $40,000 new MRR and $15,000 expansion, minus $12,000 churn, gives ending MRR of $243,000.
Start with beginning MRR, add new and expansion MRR, then subtract churned and contraction MRR.
Strong Series A SaaS companies often show consistent double-digit monthly growth or a credible path to rapid annual growth.
No. MRR should include recurring subscription revenue only, not setup fees, consulting, or one-time payments.
Net new MRR equals new MRR plus expansion MRR minus churned and contraction MRR.
Expansion MRR indicates customers are growing in value, which supports retention, LTV, and efficient revenue growth.
| Metric | Meaning |
|---|---|
| Ending MRR | Recurring revenue after monthly movements |
| Net New MRR | New plus expansion minus lost MRR |
| Growth Health | Growth quality based on churn and expansion |