SaaS Metrics Calculator
Calculate Monthly Recurring Revenue (MRR), ARR, Net Revenue Retention (NRR), Gross Revenue Retention (GRR), Quick Ratio, and Rule of 40.
Monthly MRR Movements
Efficiency & Benchmarks (Optional)
MRR Waterfall Movement
Annualized growth + profit margin = 171%. Target is 40%+.
Annualized net new ARR generated per dollar of sales & marketing spend.
NRR > 100% indicates net negative churn where existing customer expansion outweighs all cancellations.
Analyze SaaS financial performance with automated calculation of MRR movements, retention cohorts, growth efficiency ratios, and executive benchmarks.
Formulas & Methodology
- Net New MRR:
New MRR + Expansion MRR - Contraction MRR - Churned MRR - Ending MRR:
Starting MRR + Net New MRR - ARR:
Ending MRR × 12 - Net Revenue Retention (NRR):
((Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) ÷ Starting MRR) × 100 - Gross Revenue Retention (GRR):
((Starting MRR - Contraction MRR - Churned MRR) ÷ Starting MRR) × 100 - SaaS Quick Ratio:
(New MRR + Expansion MRR) ÷ (Contraction MRR + Churned MRR) - Rule of 40 Score:
Annual Growth Rate (%) + Profit Margin (%)
Worked Acceptance Example
For a SaaS company with:
- Starting MRR: $50,000.00
- New MRR: $6,000.00
- Expansion MRR: $2,500.00
- Contraction MRR: $800.00
- Churned MRR: $1,200.00
The calculations are:
- Net New MRR:
$6,000 + $2,500 - $800 - $1,200 = $6,500.00 - Ending MRR:
$50,000 + $6,500 = $56,500.00 - ARR:
$56,500 × 12 = $678,000.00 - NRR:
(($50,000 + $2,500 - $800 - $1,200) ÷ $50,000) × 100 = 101.0% - GRR:
(($50,000 - $800 - $1,200) ÷ $50,000) × 100 = 96.0% - Quick Ratio:
($6,000 + $2,500) ÷ ($800 + $1,200) = 4.25x(Top-tier growth)
Frequently Asked Questions
What is Net Revenue Retention (NRR) and why is it important?+
Net Revenue Retention (NRR) measures the percentage of recurring revenue retained from existing customers over a period, factoring in expansion, contraction, and churn. An NRR above 100% signifies "net negative churn," where expansion from retained customers outpaces all cancellations.
What is the SaaS Quick Ratio?+
The SaaS Quick Ratio compares revenue additions (New MRR + Expansion MRR) to revenue losses (Contraction MRR + Churned MRR). A ratio greater than 4.0 indicates highly efficient, top-quartile growth.
What is the Rule of 40 in SaaS?+
The Rule of 40 is a principle stating that a software company's combined annual revenue growth rate and profit margin (such as Free Cash Flow margin) should equal or exceed 40%.
How does MRR convert to ARR?+
Annual Recurring Revenue (ARR) is calculated simply as normalized Monthly Recurring Revenue (MRR) multiplied by 12 (ARR = MRR × 12).