MRR Bridge Planner
Reconcile new, expansion, resurrected, contracted and churned MRR.
MRR moved from $420,000 to $448,000, $28,000 net new (6.7%). New and expansion are outpacing churn. Watch the 7.1% gross churn line, it's the leak that caps this number.
The MRR bridge is the cleanest growth narrative for a board: it shows not just that MRR grew, but exactly which of the five movements drove it.
About this calculator
A single "MRR went up" or "MRR went down" statement tells a board almost nothing about why. This planner reconciles all five MRR movements, new, expansion, resurrected, contraction and churn, into a clean bridge from starting to ending MRR, so the growth story is explicit about which lever actually drove the change.
How to use it
- Enter your starting MRR.
- Enter new MRR (from new customers), expansion MRR (upsells to existing customers), and resurrected MRR (customers who came back after churning).
- Enter contraction MRR (downgrades from existing customers) and churned MRR (customers who canceled).
- Read net new MRR, ending MRR, month-over-month growth, and gross MRR churn.
Methodology
Net new MRR is new plus expansion plus resurrected, minus contraction and churned, all five movements combined into a single figure. Ending MRR is starting MRR plus net new MRR.
Month-over-month growth is net new MRR divided by starting MRR, expressed as a percentage, the standard growth-rate view of the same bridge. Gross MRR churn is contraction plus churned MRR, divided by starting MRR, isolating just the loss side of the bridge regardless of how much new business offset it.
The tool tones ending results by whether net new MRR is positive or negative, and separately flags gross MRR churn as healthy at 3% or under, since that's a commonly used benchmark for acceptable monthly logo-and-revenue loss in SaaS businesses with reasonably long customer lifetimes.
This bridge covers a single period end to end, it doesn't track trend across multiple months on its own. Run it each period and compare the five components month over month to see whether, for instance, churn is worsening even while new MRR growth masks it in the net figure.
FAQ
Contraction is revenue lost from customers who stayed but downgraded, fewer seats or a lower tier. Churned MRR is revenue lost from customers who canceled entirely. Keeping them separate matters because they call for very different fixes, contraction often points to a packaging or usage problem, churn to a fundamental value or fit problem.
Resurrected MRR is revenue from customers who previously churned and came back. It's tracked separately from new MRR because win-back customers behave differently, they already know the product, so their retention and expansion patterns are usually better studied on their own than lumped in with brand-new logos.
Net new MRR can look healthy purely because new business volume is high, masking a serious churn problem underneath. Gross MRR churn isolates the loss side on its own, so you can tell whether growth is durable (low churn, strong new business) or fragile (high churn, papered over by even higher new business).
The quick ratio compresses the same five movements into a single ratio (gained ÷ lost) for a fast efficiency read. This bridge planner keeps all five movements visible individually and shows the dollar-for-dollar reconciliation from starting to ending MRR, better suited for board reporting where the "why" behind the number matters.