Accounting Monthly Recurring Revenue Calculator Examples
Worked monthly recurring revenue examples for new sales, customer expansion, contraction and churn.
These examples show how different monthly revenue movements affect ending MRR, growth, ARR and retention. Each uses the same reconciliation method but represents a different subscription business situation.
Early-stage business adding new subscribers
New business drives all growth; there is no expansion, contraction or churn.
Input Summary
Starting MRR
$3,000/month
New customers
10
Average new customer MRR
$80/month
Expansion, contraction and churn
$0/month
Calculation Breakdown
- 1New MRR10 * $80$800/month
- 2Ending MRR$3,000 + $800$3,800/month
- 3Growth rate(($3,800 - $3,000) / $3,000) * 10026.7%
- 4ARR run rate$3,800 * 12$45,600/year
Result Summary
ARR run rate
$45,600/year
Accounting Monthly Recurring Revenue Calculator
Ending MRR is $3,800, with 26.7% monthly growth and a $45,600 ARR run rate.
Growing SaaS business with expansion
Expansion more than offsets a modest amount of churn and contraction.
Input Summary
Starting MRR
$25,000/month
New customers
12
Average new customer MRR
$250/month
Expansion MRR
$1,800/month
Contraction MRR
$400/month
Churned MRR
$900/month
Calculation Breakdown
- 1New MRR12 * $250$3,000/month
- 2Ending MRR$25,000 + $3,000 + $1,800 - $400 - $900$28,500/month
- 3Net revenue retention(($25,000 + $1,800 - $400 - $900) / $25,000) * 100102.0%
- 4ARR run rate$28,500 * 12$342,000/year
Result Summary
ARR run rate
$342,000/year
Accounting Monthly Recurring Revenue Calculator
Ending MRR is $28,500, growth is 14.0%, and NRR is 102.0%.
Mature business with churn pressure
New MRR partly offsets contraction and cancellations.
Input Summary
Starting MRR
$60,000/month
New customers
15
Average new customer MRR
$200/month
Expansion MRR
$500/month
Contraction MRR
$1,500/month
Churned MRR
$3,500/month
Calculation Breakdown
- 1New MRR15 * $200$3,000/month
- 2Ending MRR$60,000 + $3,000 + $500 - $1,500 - $3,500$58,500/month
- 3Growth rate(($58,500 - $60,000) / $60,000) * 100-2.5%
- 4Net revenue retention(($60,000 + $500 - $1,500 - $3,500) / $60,000) * 10092.5%
Result Summary
Net revenue retention
92.5%
Accounting Monthly Recurring Revenue Calculator
Ending MRR is $58,500, representing -2.5% monthly growth and 92.5% NRR.
How to Read Your Results
Ending MRR is the recurring monthly revenue after the period's additions and losses.
MRR growth compares ending MRR with the month-opening MRR and includes new customers.
ARR is a run-rate estimate, calculated as ending MRR multiplied by 12.
NRR isolates the starting customer base, so it excludes new customer MRR.
Review expansion, contraction and churn separately to understand what is driving the total result.
Assumptions & Important Notes
- All amounts are monthly recurring revenue in the same currency.
- Events are assigned to one reporting month consistently.
- New customers use the stated average MRR.
- ARR does not assume that the ending MRR remains unchanged for a year.
Related Examples
Frequently Asked Questions
What should an MRR example include?
A useful example separates starting MRR, new MRR, expansion MRR, contraction MRR and churned MRR.
Why can MRR growth be positive when NRR is below 100%?
New customer MRR can be large enough to offset losses in the existing customer base.
Why might ARR change by more than annual billings?
ARR is a run rate based on one month's ending MRR, while billings depend on invoice timing and contract terms.
Should free trials be included in MRR?
Generally, include only recurring revenue that your reporting method treats as active and predictable.
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