12,500 is the example result. Read it using the units and relationship stated below.
MRR uses new mrr, expansion mrr, contraction mrr.
Separating growth, retention and subscription capacity
For mrr, the relationship is Result = [New MRR] + [Expansion MRR] − [Contraction MRR] − [Churned MRR]. The amount depends on the supplied new mrr, expansion mrr, rather than a live market price or a value imported from another record. Recurring revenue should be compared across the same starting cohort. Expansion, contraction and churn change retention in different directions. Adding new customers to a retained-customer calculation can conceal losses in the original population.
What the model includes
Result = [New MRR] + [Expansion MRR] − [Contraction MRR] − [Churned MRR] Match the unit of the plan: users, seats, subscriptions and revenue are not interchangeable. A purchased seat can remain unused even when the invoice is fully paid. Annual prepayment also changes cash timing without changing monthly recurring value. Read the result beside the renewal schedule and account concentration. A short measurement window may miss seasonal usage or contracts that have not yet reached their renewal date.
Example with the supplied inputs
New MRR: 12000; Expansion MRR: 3000; Contraction MRR: 1000; Churned MRR: 1500. Result: 12,500. The values are illustrative.
Compare one changed input
New MRR changes from 12000 to 13200. The result becomes 13,700. All other inputs remain fixed.
Calculation rule
Result = [New MRR] + [Expansion MRR] − [Contraction MRR] − [Churned MRR]
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| New MRR | 12000 | Use the source quantity represented by new mrr. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Expansion MRR | 3000 | Use the source quantity represented by expansion mrr. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Contraction MRR | 1000 | Use the source quantity represented by contraction mrr. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Churned MRR | 1500 | Use the source quantity represented by churned mrr. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 12,500 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather New MRR, Expansion MRR, Contraction MRR. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change New MRR on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 12,500.
Change New MRR from 12000 to 13200 while keeping every other value fixed. The result becomes 13,700. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026