Monthly MRR growth bridge
A product starts with $18,000 MRR, adds $2,800 new MRR, $700 expansion, $300 contraction and $900 churned MRR.
- Starting MRR: $18,000
- New MRR: $2,800
- Expansion MRR: $700
- Contraction MRR: $300
- Churned MRR: $900
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MRR Growth Calculator
Calculate net MRR growth from new, expansion, contraction and churned recurring revenue.
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MRR Growth Calculator
Use this to diagnose whether recurring revenue growth comes from new acquisition, existing customer expansion or better retention.
How to use this calculator
Start with conservative inputs, copy the result, then test a best-case and worst-case version. For production decisions, compare the estimate against actual accounting, analytics and payment data.
Best used for
Use this when you need to diagnose the monthly recurring revenue bridge: new, expansion, contraction, churn and net new MRR.
Formula
MRR growth breaks recurring revenue into movement categories. This is more useful than only comparing beginning and ending MRR because it shows which part of the revenue engine is helping or hurting growth.
Formula
Net new MRR = new MRR + expansion MRR - contraction MRR - churned MRR. MRR growth rate = net new MRR / starting MRR.
Example
How to read the result
- Net new MRR above zero means the recurring revenue base is growing.
- Gross new MRR shows acquisition and expansion power before losses.
- A business can grow MRR while still having a retention problem if churned MRR is large.
Common mistakes
- Only comparing starting and ending MRR without knowing the movement drivers.
- Counting reactivations inconsistently from one month to the next.
- Mixing annual contract cash timing into monthly recurring revenue movement.
FAQ
What is net new MRR?
Net new MRR is new MRR plus expansion MRR minus contraction and churned MRR. It is the recurring revenue added after losses.
Can MRR grow while churn is high?
Yes, if new and expansion MRR are large enough. That can still be risky because growth may depend on constantly replacing lost revenue.
Should reactivations count as new MRR?
Many teams track reactivation separately. For a simple model, include reactivated accounts in new MRR if they behave like new paid accounts.
Important limits
- MRR movement depends on consistent definitions for new, expansion, contraction and churn.
- Do not mix cash collections with normalized recurring revenue.