MRR Movements & Waterfall Calculator
Break down your monthly recurring revenue waterfall: Starting + New + Expansion - Contraction - Churn = Ending MRR. Free interactive tool.
Calculated Results
Ending MRR
$55,700
Net New MRR Added
$5,700
Net Monthly Growth
11.4%
Ending MRR = Starting MRR + New MRR + Expansion MRR - Contraction MRR - Churned MRRAbout this tool
An MRR movements waterfall—often called an MRR bridge—deconstructs the transition from your starting MRR at Day 1 of a month to your ending MRR at the close of the period. Every dollar of monthly recurring revenue movement falls into one of five distinct categories: Starting MRR, New MRR (brand-new accounts), Expansion MRR (upgrades from existing accounts), Contraction MRR (downgrades from existing accounts), and Churned MRR (complete cancellations). Without this granular breakdown, a company reporting flat MRR might assume stability, completely missing the fact that $5,000 in new sales was silently cancelled out by $5,000 in customer churn. Use this interactive waterfall calculator to visualize the exact dynamics governing your net monthly revenue trajectory.
How It Works
- 1Enter your starting MRR at the beginning of the month.
- 2Input New MRR added from new customer acquisitions.
- 3Input Expansion MRR from upgrades, seats, and add-ons.
- 4Input Contraction MRR from account downgrades.
- 5Input Churned MRR from cancelled accounts.
- 6View your calculated Net New MRR, ending MRR, and net growth percentage.
Formula & Math
Transparent LogicEnding MRR = Starting MRR + New MRR + Expansion MRR - Contraction MRR - Churned MRR
Worked Practical Example
A company starts with $20,000 MRR. In May, it adds $4,000 New MRR, $1,000 Expansion MRR, loses $500 Contraction MRR, and $1,200 Churned MRR.
Calculation / Steps
$20,000 + $4,000 + $1,000 - $500 - $1,200 = $23,300
Expected Result
Ending MRR of $23,300 (+$3,300 Net New MRR, 16.50% net growth).
Frequently Asked Questions
What is Net New MRR?+
Net New MRR is the total net change during the month: (New MRR + Expansion MRR) minus (Contraction MRR + Churned MRR).
Why do investors request an MRR waterfall in board meetings?+
It immediately reveals whether growth is organic and efficient or merely brute-forced through expensive new acquisition masking a churn crisis.
How can I reduce contraction MRR?+
Contraction often occurs when teams over-provisioned seats initially. Proactive customer success reviews can right-size usage before users downgrade.
Automate retention on your cancel button
BoolBul shrinks the churn and contraction bars in your monthly waterfall by presenting smart retain-or-pause choices right inside your app.
Related SaaS Tools
MRR Calculator
Calculate Monthly Recurring Revenue (MRR), subscriber counts, and blended ARPU across multiple tiers. Free interactive calculator for SaaS founders.
Expansion MRR Calculator
Calculate total expansion MRR, expansion rate percentage, and annualized upsell value across tiers, seats, and add-ons. Free interactive tool.
Revenue Churn Calculator
Calculate gross revenue churn percentage and annualized lost MRR. Free interactive SaaS calculator for subscription founders and finance teams.
SaaS Quick Ratio Calculator
Calculate your SaaS Quick Ratio. Measure growth efficiency by comparing new and expansion MRR added against churned and contracted MRR lost.