ClarivoxxBy Abdessamad Ghanem

Free tool

MRR Growth Calculator with ARR and Quick Ratio

Ending MRR = starting MRR + new + expansion − contraction − churned. Growth rate = net new MRR ÷ starting MRR × 100, and ARR = ending MRR × 12. From $100,000, adding $8,000 new and $4,000 expansion and losing $1,500 and $2,500 gives $108,000 ending MRR, 8.0% growth, $1,296,000 ARR and a quick ratio of 3.0.

Ending MRR

$108,000

MRR grew and new revenue comfortably outpaces losses. Keep tracking the quick ratio month by month.

Net new MRR

+$8,000

MRR growth rate

8.0%

ARR run rate

$1,296,000

SaaS quick ratio

3.0

Ending MRR = $100,000 + $8,000 + $4,000 − $1,500 − $2,500 = $108,000
Growth = +$8,000 ÷ $100,000 = 8.0%
ARR = $108,000 × 12 = $1,296,000
Quick ratio = ($8,000 + $4,000) ÷ ($1,500 + $2,500) = 3.0

Frequently asked questions

How do you calculate MRR growth?
Add new and expansion MRR to your starting MRR, subtract contraction and churned MRR, and compare the result with where you started. $100,000 growing to $108,000 is $8,000 of net new MRR, or 8.0% growth.
What is the SaaS quick ratio?
It divides the MRR you gained (new plus expansion) by the MRR you lost (contraction plus churn). $12,000 gained against $4,000 lost is a quick ratio of 3.0. Many investors look for 4 or more in early-stage companies.
How do you convert MRR to ARR?
Multiply MRR by 12. $108,000 of MRR is a $1,296,000 ARR run rate. Only count recurring subscription revenue, and leave out one-off fees such as setup or services.

About the author

Abdessamad Ghanem

Customer Experience & Customer Success Consultant · Founder of Clarivoxx

Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.

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