Business
MRR Bridge Calculator
Reconcile opening monthly recurring revenue to ending MRR and exit ARR through named additions and losses. Review a dedicated movement bridge, growth and loss ratios, exact scenarios, definitions, limitations, and a professional PDF report.
Gross MRR additions-
Gross MRR losses-
Net new MRR-
Ending MRR-
Period MRR growth-
Ending ARR run rate-
Losses as share of additions-
Decision view
Opening-to-ending MRR movement ledger
Opening-to-ending MRR movement ledgerGross additions and gross losses reconcile the opening recurring-revenue base to ending MRR.
Ending MRR under churn pressureChurned MRR is horizontal; ending MRR and net-new MRR are separate monetary series so growth quality remains visible.
Exact scenario comparisonChurned MRR changes while all other entered assumptions remain constant.
| Churned MRR | Gross MRR additions | Gross MRR losses | Net new MRR | Ending MRR | Period MRR growth | Ending ARR run rate | Losses as share of additions |
|---|
Period-by-period detail
Monthly recurring-revenue movement ledger
How to use MRR Bridge Calculator
- Enter opening MRR using the reporting policy applied to the prior close.
- Classify every movement as new, expansion, reactivation, contraction, or churn.
- Confirm gross additions and gross losses before reading net new MRR.
- Use the bridge to verify that opening MRR plus net movements equals ending MRR.
Calculator guide
Understanding MRR Bridge Calculator
An MRR bridge is a movement ledger: opening MRR plus new business, expansion, and reactivation, less contraction and churn, must equal ending MRR. The bridge exposes the growth engine and the leakage separately.
Calculation method
How the calculation works
Reconcile opening monthly recurring revenue through named addition and loss movements to ending MRR and exit ARR. Gross additions sum new, expansion, and reactivation MRR. Gross losses sum contraction and churn. Net new MRR is additions minus losses; ending MRR adds that net movement to opening MRR, and exit ARR multiplies ending MRR by 12.
Close procedure
Reconcile the recurring-revenue movement ledger
A clean bridge can be traced from the closing total to individual customer events.
Worked situations
Practical examples
- New MRR growth can be offset by high churn and contraction.
- Reactivation belongs in additions but should remain distinct from new logos.
- Ending ARR is a run-rate conversion, not recognized annual revenue.
Better inputs
Useful tips
- Reconcile the bridge to customer-level recurring-revenue records.
- Keep services, setup fees, and nonrecurring usage outside MRR unless policy explicitly includes them.
- Track movement rates as well as dollar amounts when the opening base changes.
Before relying on the result
Limitations and common mistakes
- The bridge does not show customer counts, gross margin, collections, bookings, or contract duration.
- Annualizing ending MRR assumes the closing run rate persists for 12 months.
- FX, pauses, credits, migrations, and usage revenue require explicit policy.
Reference
Key terms
- Opening MRR
- Recurring revenue run rate at the start of the period.
- Net new MRR
- Gross additions minus gross losses.
- Reactivation
- Recurring revenue restored from a previously inactive customer.
- Exit ARR
- Ending MRR multiplied by 12 as a run-rate reference.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
What is included in MRR?
Recurring subscription revenue normalized to one month under the organization's documented policy.
Is expansion from existing customers new MRR?
It is an addition, but it should be classified separately from new-customer MRR.
Why keep contraction separate from churn?
Contraction retains the customer at a lower recurring value; churn removes the recurring value entirely.
Does exit ARR predict next year's revenue?
No. It annualizes the closing monthly run rate without modeling future movement.