MRR Movement Bridge

Reconcile starting MRR with new, expansion, contraction, and churn movements.

Description

An MRR bridge reconciles the opening monthly run rate with new, expansion, contraction and churn movements.

An MRR bridge reconciles the opening monthly run rate with new, expansion, contraction and churn movements. Net new MRR can be negative.^[1]

Reconcile starting MRR with new, expansion, contraction, and churn movements.

When to use MRR Movement Bridge

Use this for the following task: Reconcile starting MRR with new, expansion, contraction, and churn movements.

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.

How to use MRR Movement Bridge and understand its results

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
Enter startingMrr, newMrr, expansionMrr, contractionMrr, churnMrr using the field table, then run the tool.
Read endingMrr, netNewMrr. Interpret flags, units, ordering and placeholder values using the rules below.
Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.

Input field	Meaning	Value type and bounds	Requirement
startingMrr	Starting mrr	number	Required
newMrr	New mrr	number	Required
expansionMrr	Expansion mrr	number	Required
contractionMrr	Contraction mrr	number	Required
churnMrr	Churn mrr	number	Required

Use nonnegative movements and require losses no greater than starting MRR. Sum additions and losses, then add net movement to the opening amount.^[2]

netNew=new+expansion−contraction−churn; ending=starting+netNew

This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.

Output field	Meaning	Value type
endingMrr	Ending mrr	number
netNewMrr	Net new mrr	number

json

{
  "input": {
    "startingMrr": 100,
    "newMrr": 20,
    "expansionMrr": 10,
    "contractionMrr": 5,
    "churnMrr": 15
  },
  "output": {
    "endingMrr": 110,
    "netNewMrr": 10
  }
}

Limitations and assumptions

Movements need consistent definitions and no double counting. This does not infer movements from invoices.

These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.

Alternative or Complementary methods

Choose Subscription MRR for this operation: Normalize subscription billing plans to recurring monthly revenue and annualized run rate. For a complementary task, use Net Revenue Retention for this operation: Compute net revenue retention including expansion within the starting customer cohort.

Further background: Billing analytics dashboard.

References

Billing analytics dashboard — Stripe
MRR Movement Bridge — tool.io

Similar or alternative tools

Subscription MRR
Normalize subscription billing plans to recurring monthly revenue and annualized run rate.
Net Revenue Retention
Compute net revenue retention including expansion within the starting customer cohort.