Recurring Revenue Calculator: MRR Bridge, NRR, Quick Ratio

Where did this month’s recurring revenue come from, and where did it go? See the bridge from start to end, your net revenue retention, revenue churn and quick ratio: how much you add for every unit you lose. Works for subscriptions, retainers, contracts and memberships. Load an example from 15 industries, nine of them where I have worked.

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Example

Currency Recurring revenue at the start of the month MRR New recurring revenue from new customers Expansion upgrades and add-ons from existing customers Contraction downgrades and discounts Churned revenue from customers who left

Recurring revenue at month end-

Net revenue retention-

Revenue churn-

Quick ratio-

FormulaEnd = start + new + expansion − contraction − churned · net revenue retention = (start + expansion − contraction − churned) ÷ start · quick ratio = (new + expansion) ÷ (contraction + churned)

What to do next

Show the working, step by step

Where I used this

At Praava Health I built the corporate-sales engine from zero, growing from 342 to about 1,400 corporate clients and 3.1 times the programs.

Read the case: Building the corporate-sales engine from zero →

Step beforeCount who leaves: Churn and retention Next stepTurn it into a growth rate: Growth rate Same stageValue each customer: LTV:CAC

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Four ways to grow recurring revenue

New customers. The obvious lever, and usually the most expensive. Check what each one costs with the CAC calculator.
Expansion. More users, more services or a higher plan for customers who already trust you.
Fewer downgrades. Catch customers who use less before they ask for a cheaper plan.
Fewer cancellations. Every unit of churned revenue has to be won back before you grow at all.

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Recurring revenue stuck, or leaking?

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Questions

What is MRR?

Monthly recurring revenue: the predictable revenue you expect every month from subscriptions, retainers or contracts. It leaves out one-off sales.

What is net revenue retention?

Revenue from last month’s customers this month, after upgrades, downgrades and cancellations, as a share of what they paid last month. Above 100% means you would grow even with no new customers.

What is the quick ratio?

New plus expansion revenue divided by contraction plus churned revenue. Above 1 you are growing; the higher it is, the less of your new revenue is spent replacing what leaked out.

Recurring revenue bridge