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Guides9 min readApr 25, 2026

MRR, ARR, ARPA, Churn: The Only Revenue Metrics Guide Your SaaS Needs

Clear definitions, formulas, and benchmarks for SaaS revenue metrics.

MRRARRSaaS metrics

MRR, ARR, ARPA, and NRR form the bedrock of every SaaS business.

MRR = Σ monthly subscription values

Normalize annual subscribers: Annual Plan Value ÷ 12. Net New MRR = New + Expansion - Contraction - Churned.

ARR = MRR × 12

Used for board reporting and investor discussions.

Net Revenue Retention (NRR)

NRR = (Starting MRR + Expansion - Contraction - Churned) ÷ Starting MRR × 100. World-class: >120%. Good: 100-120%.

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Subscriply Team
Published Apr 25, 2026
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