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
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Monthly MRR growth
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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?
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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?
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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.
Confirm the current, in-force text governing MRR, ARR and Recurring Revenue Bridge Calculator on the official source linked above - the summary on this page is an implementation aid, not a substitute for it.
Record the exact event/transaction date, since the applicable version of the law, form or threshold can change between the date of the underlying event and today.
Preserve the primary documents (notices, applications, orders, acknowledgements) that would let a reviewer reconstruct how the facts were classified and what was actually done.
Check for a State-specific rule, later amendment or binding judicial decision that may modify how this applies on your facts.
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.
Scope: Computes Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR) and the MRR movement bridge (new, expansion, contraction, churned) between two periods.
Calculation logic
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).
ARR = MRR × 12 (a straightforward annualisation of the current MRR run-rate, not a forecast).
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
Only recurring subscription revenue is included — one-time fees, professional services and usage-based overage charges are excluded from MRR unless the user classifies them as recurring for their specific model.
Annual and multi-year contracts are normalised to a monthly figure for MRR purposes, per standard SaaS reporting convention.
Exclusions and edge cases
Does not distinguish MRR by product line/plan tier unless the user runs the bridge separately per segment.
Currency and FX movements for multi-currency subscriptions are not automatically normalised — the user should enter figures in a single consistent currency.
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.