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SaaS metrics

MRR, ARR and Recurring Revenue Bridge Calculator

Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026

Build a monthly recurring revenue bridge from new, expansion, contraction, churn and reactivation MRR.

Monthly recurring revenue bridge

Closing MRR
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Run-rate ARR
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Net new MRR—
Monthly MRR growth—
Calculation guidance will appear here.

How This Is Calculated

This calculator bridges MRR month-over-month: closing MRR = opening MRR + new business + expansion + reactivation − contraction − churn. ARR is simply closing MRR × 12, treating monthly recurring revenue as if it continued at the current run rate for a full year.

Frequently Asked Questions

What is the difference between MRR and ARR? ▼
MRR (Monthly Recurring Revenue) is the current monthly run rate. ARR (Annual Recurring Revenue) is simply MRR × 12 — an annualized run-rate figure, not actual revenue collected over a year, since it assumes the current MRR level continues unchanged for 12 months.
What are the components of the MRR bridge? ▼
New business (revenue from new customers), expansion (upsell/cross-sell from existing customers), reactivation (returning customers), contraction (existing customers downgrading), and churn (customers cancelling) — tracking each separately shows exactly what's driving MRR growth or decline, not just the net number.

Evidence and verification checklist

Before relying on this page

This page is a structured implementation summary, not the operative legal text. Portal or process acceptance of a filing does not by itself establish legal compliance - the underlying classification, authority, evidence and timeline still have to be independently correct. Where the facts are contested, high-value, or time-barred if delayed, verify the current position with the official source and, where appropriate, a qualified professional before acting.

FININ2MIN · ADVANCED WORKINGS

MRR and ARR Revenue Bridge · Advanced

Roll forward subscription run-rate, split net new recurring revenue by driver, and calculate true beginning-cohort retention.

Enter assumptions and select Calculate.
Methodology: SEC filed SaaS metric definitions · SEBI goal-planning illustrations. Customer metrics are management KPIs, not audited revenue. Education figures use user assumptions, are not investment advice or a promise of returns. Review sources, dates and assumptions before relying on the output.
Last reviewed: 15 July 2026

Methodology, assumptions and sources

Scope: Computes Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR) and the MRR movement bridge (new, expansion, contraction, churned) between two periods.

Calculation logic

  1. MRR = Sum of the normalised monthly value of all active recurring subscriptions at a point in time (annual contracts are divided by 12; multi-year contracts are annualised then divided by 12).
  2. ARR = MRR × 12 (a straightforward annualisation of the current MRR run-rate, not a forecast).
  3. MRR bridge for the period = Starting MRR + New MRR (from new customers) + Expansion MRR (upsells to existing customers) − Contraction MRR (downgrades) − Churned MRR (cancellations) = Ending MRR.

Inputs and assumptions

Exclusions and edge cases

Sources

No external regulatory source applies — this is a general financial formula, not a statutory computation.

Review status: reviewed and approved by CA Nikhil Gupta on 18 July 2026.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.