ARR, NRR and Rule of 40 calculator 2026

How to use the ARR & NRR calculator

Choose the monthly view if you track MRR movements, or the annual view if you report ARR. Enter recurring revenue at the start of the period, then new business, expansion, contraction and churned revenue, the number of customers at the start and the number lost, and your profit margin (EBITDA or free cash flow).

The formulas

• ARR = MRR × 12; Net New ARR = new + expansion − contraction − churn
• NRR = (start + expansion − contraction − churn) / start
• GRR = (start − contraction − churn) / start
• Revenue churn = (contraction + churn) / start; logo churn = customers lost / customers at start
• Rule of 40 = annual growth rate (%) + profit margin (%)
• SaaS Quick Ratio = (new + expansion) / (contraction + churn)

In the monthly view, NRR, GRR and growth are annualized by compounding the monthly rate over 12 months.

Benchmarks

An NRR above 110% means existing customers alone grow revenue. A Rule of 40 score of 40 or more is the growth and profitability balance investors look for. A Quick Ratio of 4 or more indicates efficient growth.

Revenue churn vs logo churn

When revenue churn is higher than logo churn, you are losing your larger accounts. That is a retention problem to treat before any acquisition push.