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MRR and ARR explained

MRR, ARR and net new MRR explained with a practical example.

Definitions

MRR is monthly recurring revenue. ARR is annual recurring revenue (often MRR × 12).

Net new MRR

In a month, net new MRR is:

Net new = New + Expansion − Churn

Ending MRR = Starting MRR + Net new.

Tool: Use the MRR & ARR Calculator.