SaaS MRR / ARR / Churn Calculator
Compute MRR, ARR, Net Revenue Retention (NRR), Gross Revenue Retention (GRR) and growth rate from your monthly subscription movements. Free.
SaaS MRR / ARR / Churn Calculator
Enter your starting MRR plus the four monthly movement categories: new MRR (fresh customers), expansion MRR (upgrades), contraction MRR (downgrades), and churned MRR (lost customers). Compute ending MRR, ARR, NRR, GRR, and growth rate — the canonical SaaS scoreboard.
📈 Revenue movement
🛡 Retention
How to Use the SaaS Metrics Calculator
Pull last month's starting MRR
Open Stripe, Chargebee, Recurly, or your billing system. Find the MRR on the first day of last month — that's your "Starting MRR". For B2B SaaS, this is the sum of normalised monthly subscription value across all active customers.
Tally the four monthly movements
New MRR is monthly revenue from customers who started during the month. Expansion is upgrades from existing customers (annual plans, seat adds, upsells). Contraction is downgrades. Churned MRR is monthly revenue from customers who cancelled.
Read the scoreboard
Ending MRR + ARR are the headline numbers. NRR is the most-watched investor metric — it tells you whether existing customers grow faster than they leave. GRR shows raw retention without expansion. Monthly growth + annualised growth show velocity.
Compare against Bessemer benchmarks
Bessemer publishes annual SaaS benchmarks. Top-decile public SaaS companies post NRR above 120%; median is 105-110%. GRR above 90% is healthy; below 80% suggests product-market fit issues. Tool flags these thresholds with colour coding.
SaaS Metrics That Actually Matter — The Canonical Founder Scoreboard
Why MRR, Not Revenue, Is the Starting Point
For subscription businesses, monthly recurring revenue (MRR) is the metric that everything else compounds off. Unlike one-time revenue, MRR is normalised to a monthly run-rate — an annual subscription billed at USD 1,200 contributes USD 100 to MRR each month for 12 months. This normalisation makes MRR comparable across customers on different billing cadences, and it makes growth rates additive rather than seasonal. Stripe Atlas's SaaS Metrics Guide, Bessemer's Annual State of the Cloud Report, and OpenView's SaaS Benchmarks all anchor their analysis on MRR (or its annualised cousin ARR = MRR × 12).
The four MRR movements — new, expansion, contraction, churn — are the canonical breakdown that every SaaS investor expects to see in a board deck. The math is simple: ending MRR = starting MRR + new + expansion − contraction − churn. The signal is rich: a company with USD 100K starting MRR and USD 12K of new MRR every month is growing 12% per month organically — that's roughly 290% annualised compounded, which is in venture-stage SaaS territory.
NRR vs GRR — The Two Retention Numbers Investors Watch
Net Revenue Retention (NRR) measures how much revenue you retain from a cohort, including upgrades. Formula: (starting − contraction − churn + expansion) ÷ starting. NRR above 100% means existing customers grow faster than they leave — even with zero new sales, revenue would grow. Top-decile public SaaS companies (Snowflake, ServiceNow, Datadog) post NRR above 120%. The Bessemer 2024 benchmark for best-in-class is 130%+; median for venture-backed SaaS is 105-115%.
Gross Revenue Retention (GRR) strips out expansion to show pure retention: (starting − contraction − churn) ÷ starting. GRR is capped at 100% by definition — it tells you how much you keep, not how much you grow. Healthy SMB SaaS posts GRR of 80-90%; enterprise SaaS targets 90-95%; mid-market typically lands at 85-92%. A gap between GRR and NRR larger than 15 percentage points indicates strong expansion motion (good); a gap under 5pp means you're growing through new logos only (harder to scale).
"A SaaS company with USD 100K MRR, 130% NRR, and zero new sales would grow to USD 137M ARR in 10 years. Net revenue retention compounds — it's the most powerful metric in subscription software."
Rule of 40 and T2D3 — The Growth-Profit Trade-Off
Brad Feld's Rule of 40 — that a healthy SaaS company should post growth rate + profit margin ≥ 40% — is the most-cited single benchmark for subscription business health. A 40% YoY growth company can break even on margin and still pass; a 10% growth company needs 30%+ profit margin. Best-in-class public SaaS routinely posts Rule of 40 scores of 50-80, and Bessemer's State of the Cloud breaks out the median by stage.
The "T2D3" growth pattern — Triple, Triple, Double, Double, Double — describes the venture-stage SaaS path from USD 1M to USD 100M ARR over five years. T2D3 implies sustained 200%+ YoY growth for two years followed by 100% YoY for three. The annualised growth number this tool calculates is your current month's pace compounded — if you're hitting 8%+ MRR growth monthly, you're on the T2D3 trajectory. The CPM and ad-platform bidder pool aimed at SaaS founders (Stripe, Chargebee, ProfitWell, Baremetrics, Carta) is among the highest globally precisely because growth-stage SaaS retains LTV worth thousands of USD per acquired customer.
10 Facts About SaaS Metrics
NRR over 120% is the threshold for best-in-class public SaaS (Bessemer 2024). Snowflake, ServiceNow, and Datadog all post above this consistently.
ARR = MRR × 12 is the annualised run-rate that public SaaS companies report. It's not actual annual revenue — it's a snapshot of where revenue would be if today's MRR held for 12 months.
The Rule of 40 (Brad Feld) — growth rate + profit margin ≥ 40% — is the single most-cited SaaS health metric in venture investing.
The T2D3 pattern describes venture-stage SaaS scaling from USD 1M to 100M ARR: Triple-Triple-Double-Double-Double over five years.
SMB SaaS typically posts GRR of 80-90%, mid-market 85-92%, enterprise 90-95% — retention scales with deal size.
Annual contracts typically reduce monthly churn by 50-70% versus month-to-month plans — the structural reason SaaS companies push annual prepay.
The Bessemer State of the Cloud Report is the canonical annual benchmark for public + private SaaS metrics — published since 2014.
OpenView's annual SaaS Benchmarks survey 1,000+ private SaaS companies and is the most-cited private-market dataset.
Logo churn vs dollar churn — losing 5% of customers can mean losing 1% or 20% of revenue, depending on whether the lost customers are small or large.
Carta's State of Private Markets tracks valuation multiples — SaaS at growth-stage typically trades at 6-12× forward ARR depending on Rule of 40 score.
Frequently Asked Questions
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MRR is monthly recurring revenue — the normalised monthly run-rate of subscription revenue. ARR is annual recurring revenue, defined as MRR × 12. A customer on an annual USD 1,200 plan contributes USD 100/month to MRR and USD 1,200 to ARR. ARR is reported by public SaaS companies (Snowflake, Datadog) because it's the cleaner annualised number; MRR is the operating metric founders track month-over-month. Both reference today's run-rate, not actual cash revenue collected — a SaaS company with USD 1M ARR might have only USD 500K of cash this year if annual plans were sold mid-year.
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Both measure retention but with different scopes. GRR (Gross Revenue Retention) is (starting − contraction − churn) ÷ starting — it's capped at 100% and measures pure retention from a cohort, ignoring expansion. NRR (Net Revenue Retention) adds expansion: (starting − contraction − churn + expansion) ÷ starting. NRR can exceed 100% when existing customers grow faster than they leave, which is the holy grail of SaaS — revenue compounds even without new sales. Investors watch NRR as the primary retention metric; GRR is the floor, NRR is the ceiling-plus.
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Depends on segment. SMB SaaS (small business, individuals) typically posts NRR of 95-105% — limited expansion runway per customer. Mid-market lands at 105-115%. Enterprise SaaS targets 115-130%+ because each customer has many seats / departments to expand into. Bessemer's 2024 benchmarks show median NRR of 105-110% across venture-backed private SaaS, with top-decile at 130%+. If you're below 100%, the priority isn't growth marketing — it's retention engineering (better onboarding, customer success, value realisation).
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No. MRR is strictly recurring revenue — subscription fees that will be billed again next month. One-time setup fees, implementation services, training, and consulting revenue are revenue, but not MRR. Include them in your top-line revenue reporting, but exclude from MRR / ARR calculations. The Stripe Atlas SaaS Metrics Guide is explicit on this: MRR is "the monthly portion of revenue that will be recurring at the current rate" — anything one-time gets booked separately.
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Normalise annual contracts to monthly: a USD 12,000 annual contract contributes USD 1,000 to MRR. Cash collection is different from MRR — you collected USD 12,000 upfront, but MRR recognises USD 1,000/month over 12 months. Annual contracts typically reduce churn by 50-70% (the customer is locked in for a year) which is why most SaaS companies offer 10-20% discounts for annual prepay. Both Stripe Billing and Chargebee handle the MRR normalisation automatically.
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Brad Feld's Rule of 40 states that a healthy SaaS company should post (YoY growth rate %) + (profit margin %) ≥ 40%. A 40% growth company can run at break-even and still pass; a 10% growth company needs 30%+ margin. Investors use Rule of 40 to evaluate trade-offs — high growth + losses is acceptable up to a point; modest growth requires profitability. Best-in-class public SaaS routinely posts Rule of 40 scores of 50-80. This tool computes the growth half of the equation; you'd compute profit margin separately from your P&L.
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Dollar churn matters more for revenue impact; logo churn matters more for customer relationship signal. Losing a USD 10K/month enterprise customer is one logo lost but 10x the revenue hit of losing a USD 1K/month SMB customer. Investor-facing reporting uses dollar churn (this tool's "dollar churn %"). Customer success teams track logo churn because it's the early-warning signal — if you're losing many small customers, the SMB segment may have product-market fit issues even if revenue impact is small.
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Enter net-of-VAT figures for cleanest comparison with US SaaS benchmarks. European subscription pricing usually displays as VAT-inclusive to consumers (the "Tax-Inclusive" pricing pattern), but MRR for board reporting and investor decks should always exclude VAT — it's a pass-through tax, not revenue. Stripe and Chargebee both handle this automatically when configured for EU markets. If you only have gross figures, divide by (1 + VAT rate) — typically 1.19 for German B2B, 1.20 for UK, 1.21 for Netherlands.
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The math is universal but ARR levels and valuation multiples differ. US/EU SaaS funded by US VCs targets USD 1M ARR for seed-stage, USD 3-5M for Series A, USD 10-20M for Series B. ASEAN SaaS (Singapore, Indonesia, Vietnam, Malaysia) typically operates at 30-50% lower ARR thresholds per stage because the addressable market is smaller and contract sizes are typically smaller. NRR / GRR benchmarks are similar globally though — retention math doesn't depend on geography. Singapore-based SaaS investors (Vertex, Openspace, Wavemaker Partners) publish regional benchmarks; the Bessemer/OpenView numbers are still useful as the ceiling reference.
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Report in USD, normalise to the US SaaS canon (MRR, ARR, NRR, GRR, Rule of 40). US investors are familiar with these terms and will pattern-match your metrics against US comparables — using US conventions makes due diligence faster. If you have a mix of US and ASEAN customers, segment ARR by region in the appendix of any investor deck — US ARR carries higher revenue multiples in valuation (typically 8-12× vs 4-7× for SEA-only ARR). Also useful: our Customer LTV Calculator and CAC Payback Calculator for the full unit-economics scoreboard.
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