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Twenty thousand, then a net add
Start the month at 20,000 of recurring revenue. New customers add 4,000. Expansions add 1,000. Accounts that left take 2,000 with them.
Starting monthly recurring revenue: 25% lower
Change starting monthly recurring revenue to 15,000 while keeping the other example values the same.
Starting monthly recurring revenue: 25% higher
Change starting monthly recurring revenue to 25,000 while keeping the other example values the same.
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Quick answer
What does the Monthly recurring revenue calculate?
What MRR and ARR follow after new, expansion, and churned recurring revenue? This calculator uses starting monthly recurring revenue, new mrr this period, expansion mrr this period, and churned mrr this period to estimate recurring revenue run-rate immediately in your browser.
With the values currently entered, the result is $23,000.00 — ending monthly recurring revenue. It also shows annual recurring revenue, net new mrr, and starting mrr.
How to use the Monthly recurring revenue
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Starting monthly recurring revenue
- New MRR this period
- Expansion MRR this period
- Churned MRR this period
Monthly recurring revenue formula
Ending MRR = starting + new + expansion − churned. ARR = ending MRR × 12.
Assumptions
- Recurring means the same customer is billed again next month. One-off invoices stay out of these boxes.
- ARR here is 12 times ending MRR. That is a planning annualization, not a GAAP revenue total and not cash collected.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Walks an income statement from sales to cost of sales, then to gross profit, operating expenses, and the bottom-line net earnings.
Manage your businessUS Small Business AdministrationScope: US small-business planning; method is generalSBA planning pages treat revenue, customers, and cash as figures you track on a period you choose. Recurring-revenue and churn ratios on this site use the amounts you type for that period.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Monthly recurring revenue example and edge cases
Monthly recurring revenue is the run-rate you expect to bill again next month. Add new and expansion, subtract churned, and annualize the ending figure as 12 times that month.
Example: Twenty thousand, then a net add
Start the month at 20,000 of recurring revenue. New customers add 4,000. Expansions add 1,000. Accounts that left take 2,000 with them.
- Starting monthly recurring revenue
- 20,000
- New MRR this period
- 4,000
- Expansion MRR this period
- 1,000
- Churned MRR this period
- 2,000
Calculated result$23,000.00ending monthly recurring revenue
Ending MRR is 23,000. ARR on this page is 276,000, which is 12 × 23,000. That is a planning annualization, not a GAAP year and not cash in the bank.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read ending MRR first. Net new MRR tells you whether the book grew this period.
- ARR here is just 12 times the ending month. A seasonal business should not treat that as next year’s collected cash.
Edge cases worth checking
A large one-off invoice landed this month
Leave it out. Recurring means the same customer is billed again. One-off work belongs on a profit-margin page, not in MRR.
A customer prepaid a year
Count the monthly slice you will recognize each month, not the whole prepayment. Otherwise the starting month looks huge and the next eleven look empty.
What changes the result most
Starting monthly recurring revenue
Use a current amount for starting monthly recurring revenue. Include fees or recurring costs that belong in the same figure.
New MRR this period
Use a current amount for new mrr this period. Include fees or recurring costs that belong in the same figure.
Expansion MRR this period
Use a current amount for expansion mrr this period. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Starting monthly recurring revenue: 25% lower
15,000$18,000.00ending monthly recurring revenue
Starting monthly recurring revenue: 25% higher
25,000$28,000.00ending monthly recurring revenue
New MRR this period: 25% higher
5,000$24,000.00ending monthly recurring revenue
Common mistakes
Check starting monthly recurring revenue
Recurring means the same customer is billed again next month. One-off invoices stay out of these boxes. Make sure this matches the number you enter.
Keep churned mrr this period consistent
ARR here is 12 times ending MRR. That is a planning annualization, not a GAAP revenue total and not cash collected. Use the same units and time period throughout the calculation.
Do not rely on one monthly recurring revenue scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What MRR and ARR follow after new, expansion, and churned recurring revenue?
It does not replace a quote, contract, accountant, or local employment guidance.