£1,800 of new MRR became £1,280 of growth. Churn and downgrades ate the other £520
MRR Bridge Calculator
Type the four movements of a month, new, expansion, contraction and churn, and read net new MRR, the growth rate and what is quietly leaking.
MRR Movements Bridge
New, expansion, contraction and churn to net new MRR: the month explained in four movements that sum exactly.
Why the bridge beats the headline
One net number hides four different problems. Growth stalling because new sales slowed needs a different fix from growth stalling because churn doubled, and the bridge is the only view that says which happened.
Expansion is the quiet hero: past 100 per cent net revenue retention, the base grows before sales sells anything. Contraction is the quiet warning, downgrades usually lead cancellations by a quarter.
The demo month: £1,800 new, £520 expansion, £160 contraction, £880 churn is £1,280 of net new MRR, 3.2 per cent growth. The SaaS Metrics Workbook runs the same bridge across twelve months.
Take the workbook
The twelve-month MRR waterfall in Excel, every metric computed from the same four movements.
Download the workbookFAQs
Can’t find the answer you’re looking for? Please chat to our friendly team.
We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
CONTACT
Get in touch
