Monthly Recurring Revenue (MRR): Definitions, Formulas And How To Improve It
Stax
APRIL 15, 2025
You can calculate it using this formula: (New MRR + Expansion MRR + Reactivation MRR) (Churn MRR + Contraction MRR) Now, if you had $5,000 of new MRR, $500 in upgrades, and $400 in reactivations, but you had a churn of $1,000 and $500 in downgrades, your net new MRR would be $4,400. MRR can measure performance of various customer segments.
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