METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Reconcile every recurring-revenue movement, then distinguish acquisition-led growth from retention and expansion in the existing customer base.
Worked example
The opening example starts at 50,000 MRR, adds 11,000 from new and expansion, and loses 6,000 to contraction and churn, ending at 55,000.
Common mistakes
- Including one-off service revenue in MRR.
- Counting reactivation in more than one movement.
- Using bookings before the revenue becomes recurring.
Frequently asked questions
Is the mrr growth calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Which period should I use?
Keep every input on the same basis—for example, one month or one financial year. Use current figures first, then save a cautious scenario for comparison.
Continue the decision
- Customer Churn Calculator — Measure customer churn, retention and net movement.
- Revenue Growth Calculator — Measure growth and project a future revenue scenario.
Popular small-business decision paths
- Build the next cash-flow forecast
- Measure how quickly invoices become cash
- Calculate UK late-payment interest
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.