The method
How it is worked out
- benchmark
- 4 or above is the widely quoted target for venture-scale SaaS
Compare the MRR you add with the MRR you lose to see how efficiently you grow. The result updates as you type so you can compare scenarios quickly.
The method
Keep in mind
Use the calculator to compare scenarios rather than as a guaranteed forecast.
Compare the recurring revenue you add each month with what you lose, to see how efficiently you grow.
New plus expansion MRR is divided by contraction plus churned MRR.
Adding £38,000 while losing £12,000 is a quick ratio of 3.2: growing, but churn takes nearly a third of every new pound.
Put it to work
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
SaaS founders, revenue leads and investors reading a monthly metrics pack.
Mistakes worth avoiding
Questions
Compare the MRR you add with the MRR you lose to see how efficiently you grow.
New plus expansion MRR is divided by contraction plus churned MRR.
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
Reading a single month; one large account distorts it. Counting reactivations as expansion. Fixing acquisition when retention is the problem.
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
Executive Insights
Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.