SaaS Growth
ARR / MRR Calculator
Convert between MRR and ARR while breaking down the four movements that drive net new MRR. Includes SaaS Quick Ratio for growth-quality scoring.
What this calculator does
The ARR / MRR Calculator decompose MRR into new, expansion, contraction, and churn, then compares your result against operator benchmarks (Quick Ratio: 4+ excellent, 2-4 healthy, 1-2 at risk, <1 unsustainable.). Enter your numbers below and you'll get a result, a benchmark band, and a plain-English interpretation in under two minutes.
MRR Movements
Results
Net New MRR
$16,000
Growth
Ending MRR
$116,000
Base + Net New
Ending ARR
$1,392,000
MRR × 12
Quick Ratio
3.3
Healthy
Interpretation
Healthy growth efficiency. Your inflows comfortably exceed outflows, but there's room to improve retention.
Formula
Net New MRR = New + Expansion - Contraction - Churn. Quick Ratio = (New + Expansion) / (Contraction + Churn).Benchmarks: Quick Ratio: 4+ excellent, 2-4 healthy, 1-2 at risk, <1 unsustainable.
Sources: OpenView 2024 SaaS Benchmarks, ChartMogul Retention Reports, ProfitWell Pricing Studies, and Pressense operator data.
Frequently asked questions
What's the difference between MRR and ARR?
MRR is monthly recurring revenue; ARR is MRR x 12. ARR is the standard metric for board reporting and valuation. MRR is the operational metric for tracking month-over-month movement. Both numbers describe the same business, just at different cadences.
What is the SaaS Quick Ratio?
Quick Ratio = (New MRR + Expansion MRR) / (Contraction MRR + Churned MRR). It measures growth efficiency: a ratio of 4 means you're adding $4 of revenue for every $1 leaking out. Public-grade SaaS companies generally run 3-4+.
What counts as expansion vs new?
New MRR is from a brand-new logo. Expansion MRR is revenue growth from an existing customer (more seats, higher tier, add-on modules). Drawing this line clearly is essential, investors will ask, and conflating them hides the health of your retention motion.
About this calculator
Built and reviewed by the Pressense team, a strategy and systems partner working with B2B SaaS operators on unit economics, retention, GTM, and positioning. Every calculator in this library uses public benchmarks from OpenView, ChartMogul, ProfitWell, and KeyBanc, supplemented with anonymised data from the operators we partner with.
Disclaimer: This calculator is for educational and planning purposes only. Outputs are estimates based on the inputs you provide and industry benchmarks, not financial, tax, legal, or investment advice. Validate all results with a qualified professional before making decisions about funding, valuation, hiring, or capital allocation.