JavaScript is required for the interactive calculator. Please enable JavaScript and reload.

Written by MetricKit EditorialReviewed by MetricKit Editorial ReviewUpdated 2026-05-09

How MetricKit maintains this page

Review the methodology behind the formulas, see how content is reviewed, and use the contact page for questions, feedback, or corrections.

Methodology Editorial policy Contact

MRR Waterfall Calculator

Name: MRR Waterfall Calculator
Author: MetricKit Editorial

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:mrr net new mrr quick ratio

MRR waterfall: reconcile starting MRR to ending MRR MRR: what it means (and how to track it cleanly)MRR Forecast Formula: Example, Template, and Monthly Bridge Gross revenue churn: definition, formula, and how to calculate it

Starting MRR (beginning of period)

New MRR

Expansion MRR

Contraction MRR

Churned MRR

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

Enter starting MRR for the period.
Enter MRR movements: new, expansion, contraction, churned.
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.