Revenue
SaaS MRR Calculation Guide
A SaaS MRR calculation guide for understanding new MRR, expansion, contraction, churn, and revenue quality.
Search intent
Calculate SaaS MRR
Primary keyword: SaaS MRR calculation
SaaS MRR calculation is more than adding subscription totals. You need to understand new MRR, expansion, contraction, churn, refunds, and one-time revenue separately.
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Separate recurring and one-time revenue
A one-time license and a subscription are both useful, but they are not the same metric. Keep MRR clean so growth is not overstated.
- Monthly subscriptions.
- Annual contracts divided by 12.
- One-time payments tracked separately.
Track movement categories
MRR movement tells the story. New, expansion, contraction, churn, and reactivation should not be blended together.
- New MRR.
- Expansion MRR.
- Churned MRR.
Connect MRR to acquisition
Revenue by source shows which channels produce buyers, not just traffic. Tie purchases back to landing page and campaign where possible.
- Revenue per visitor.
- Revenue per source.
- Payback by channel.
FAQ
How do you calculate MRR?
MRR is the normalized monthly value of active recurring subscriptions, excluding one-time payments and usage that is not recurring.
Should annual plans count toward MRR?
Yes. Annual plan value is typically divided by 12 to calculate MRR.