Sales & marketing · Calculator companion · By K Imports
MRR and ARR movement: practical guide
This guide explains how to use the Count.ie mrr and arr movement. Bridge starting recurring revenue to ending MRR and annualised ARR. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the MRR and ARR movement calculatorWhat to prepare
- Define the event, conversion, customer and attribution period before collecting data.
- Use spend and outcomes from the same reporting window.
- Distinguish revenue, contribution profit, recurring revenue and customer lifetime assumptions.
Understand the inputs
The calculation method
Ending MRR = starting + new + expansion − contraction − churn. ARR = ending MRR × 12.
Worked example
Illustrative inputs and their result.
Example inputs
- Starting MRR (€)
- 30000
- New-customer MRR (€)
- 4000
- Expansion MRR (€)
- 2000
- Contraction MRR (€)
- 500
- Churned MRR (€)
- 1000
- One-off revenue (€)
- 5000
Calculated example result
- Ending MRR
- €34,500.00
- Annual Recurring Revenue
- €414,000.00
- Net New MRR
- €4,500.00
How to interpret the result
A marketing metric depends on its attribution and cost definitions. A favourable ratio is not proof that advertising caused every sale or that future customers will behave the same way.
Compare campaigns with the same attribution window and outcome definition. Test a lower conversion rate or shorter retention period before extrapolating a promising result.
Common mistakes to avoid
- Do not double-count a customer or conversion reported by multiple channels.
- Revenue is not the same as profit available to fund acquisition.
- Small samples and changing cohorts can produce unstable comparisons.
Assumptions and sources
One-off revenue is excluded. ARR annualises the current subscription run rate; it is not a sales forecast or recognised-revenue calculation.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.