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MRR Waterfall Calculator

Build an MRR waterfall: starting MRR + new + expansion - contraction - churn = ending MRR.

An MRR waterfall makes MRR changes explainable: you start with beginning MRR, add new and expansion, subtract contraction and churn, and you get ending MRR.

This is a practical template for monthly reporting and for diagnosing whether growth is driven by acquisition or retention/expansion.

Prefer an explanation- Read the guide.
Related definitions:mrrnet new mrrquick ratio
MRR waterfall: reconcile starting MRR to ending MRRMRR: what it means (and how to track it cleanly)Gross revenue churn: definition, formula, and how to calculate itMRR churn rate: definition, formula, and monthly-equivalent conversion
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$212,000.00
Starting MRR (beginning of period)
$200,000
New MRR
$12,000
Expansion MRR
$8,000
Contraction MRR
$3,000
Churned MRR
$5,000

How to calculate

  1. Enter starting MRR for the period.
  2. Enter MRR movements: new, expansion, contraction, churned.
  3. Review ending MRR and net new MRR, plus quick ratio as a growth-quality check.

Formula

Ending MRR = starting MRR + new + expansion - contraction - churn; Net new MRR = new + expansion - contraction - churn
  • All inputs represent the same period and use the same MRR definition.
  • This is a reporting bridge; it does not model cohorts or timing within the period.

FAQ

Is this the same as net new MRR-
Net new MRR is the change (delta) in MRR. A waterfall adds starting MRR and produces an ending MRR to reconcile the period.
Should I segment the waterfall-
Yes when possible. Segment by plan, channel, and customer size to avoid blended averages hiding churn pockets or weak cohorts.

Common mistakes

  • Mixing billings/cash with MRR run-rate movements.
  • Comparing movements across periods with different definitions.
  • Hiding problems with blended numbers (segment by plan/channel).

How to interpret

How to use an MRR waterfall
  • Use it in monthly reporting to make growth explainable, not just a single MRR number.
  • Diagnose leaky growth by tracking churned and contraction MRR trends.
  • Pair with payback and burn multiple to understand cash efficiency.

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Quick checks

  • Keep time units consistent (monthly vs annual) across inputs and outputs.
  • Segment by cohort/channel/plan before trusting a blended average.
  • Use the related guide to avoid common definition and denominator mismatches.