# MRR and ARR Calculator MCP > The MRR and ARR Calculator processes raw subscription data to give you a precise view of recurring revenue growth. It separates total revenue into actionable streams—New, Expansion, and Churn—so you always know where your money is coming from. You can quickly forecast annual figures (ARR) and calculate critical metrics like ARPU. ## Overview - **Category:** finance - **Price:** Free - **Tags:** mrr, arr, recurring-revenue, forecasting, saas-metrics, financial-analysis ## Description Understanding recurring revenue goes way beyond just looking at a single gross number. The real challenge in SaaS finance is figuring out the source of growth: did it come from new clients, existing customers upgrading their plans, or was that money lost to cancellations? This MCP solves that by giving you granular tracking for every component of your monthly and annual recurring revenue, separating New, Expansion, and Churn streams. You connect raw subscription data (plan price, unit count) directly to actionable financial metrics in one go. Because this is sensitive financial modeling, we built a financial circuit breaker into Vinkius; that means you set the maximum budget for these calculations, and your agent can't spend beyond it without your explicit sign-off. The system processes time-series data through multiple specialized tools, giving you a complete picture: how fast are you growing (Net New MRR), and what is the true value of your customer base? This allows you to move past guesswork and make decisions based on solid financial signals. ## Tools ### calculate_arr Converts your total Monthly Recurring Revenue (MRR) figure into its Annual Recurring Revenue (ARR) equivalent. ### calculate_churn_impact Determines the financial impact of customer losses, helping you quantify revenue erosion from cancellations. ### get_metrics_summary Generates a single report containing several critical SaaS metrics, giving you an overall health check. ### calculate_mrr Takes raw subscription data and computes the total Monthly Recurring Revenue for a specific period. ### project_revenue Forecasts potential revenue streams for a specified number of future months based on current data. ## Prompt Examples **Prompt:** ``` I have subscription data for January: 100 seats @ $5/seat, and 20 new seats added. Calculate the total MRR. ``` **Response:** ``` Use `calculate_mrr` with the subscription data. This will output a total MRR figure, which you can then use to calculate the ARR using `calculate_arr`. ``` **Prompt:** ``` I want to see my projected revenue for the next 12 months, starting from a current MRR of $50,000. ``` **Response:** ``` Run `project_revenue` with an MRR of 50000 and months set to 12. This provides the annualized forecast you requested. ``` **Prompt:** ``` My MRR was $80,000 last month, and my current churn rate is 5%. What does that mean for my next period? ``` **Response:** ``` Use the `calculate_churn_impact` tool. Input your $80,000 MRR and 5% churn rate to understand the potential revenue loss. ``` ## Capabilities ### Calculate Monthly Recurring Revenue Processes a batch of subscription details to generate the total MRR for any given time period. ### Separate Growth Components Takes calculated MRR and breaks it down into specific revenue streams: New, Expansion, or Churn. ### Annualize Revenue Forecasts Converts a total Monthly Recurring Revenue figure into its annualized equivalent (ARR). ### Estimate Future Income Projects expected revenue figures for an extended timeline based on current performance. ### Analyze Cancellation Impact Determines the financial weight of customer churn, showing how losses affect overall revenue. ### Generate Financial Summaries Pulls together multiple core metrics into a single, high-level summary report. ## Use Cases ### Analyzing a Quarterly Growth Spike The VP of Finance needs to know if last quarter's revenue jump was sustainable. They run the initial calculation, which then allows them to use `calculate_churn_impact` and `get_metrics_summary` together to show that while gross revenue is up, net new MRR is actually flat. ### Budgeting for Next Year A Product Manager wants funding for a major expansion. They input the current MRR and run `project_revenue` for 18 months to prove that their targeted growth path will hit revenue goals, making their case concrete. ### Board Presentation Prep The Head of Ops needs a clean board deck. Instead of pulling five different metrics from three sources, they run the MCP flow which culminates in `get_metrics_summary`, giving them all core ratios and annualized forecasts instantly. ## Benefits - Stop guessing where your money is coming from. By using the initial calculation to separate New, Expansion, and Churn, you see exactly which revenue stream needs attention. - Fast-track planning with `project_revenue`. Instead of manually building 12 months of projections in a spreadsheet, you get an instant forecast for next year's income. - Understand risk immediately. The `calculate_churn_impact` tool tells you the exact financial cost when customers leave, so you can budget retention efforts better. - Get immediate executive summaries using `get_metrics_summary`. This pulls together dozens of key SaaS ratios into one clean report instantly. - Move past monthly reporting limitations. Use `calculate_arr` to easily annualize your MRR data for big picture financial comparisons. ## How It Works The bottom line is that instead of getting one number, you walk away with a full financial breakdown showing growth sources and future projections. 1. First, you feed the system raw subscription data—things like plan prices and unit counts—to calculate the total Monthly Recurring Revenue. 2. Next, the MCP takes that initial MRR figure and separates it into distinct components (New growth, Expansion, or Churn) to show exactly where the money came from. 3. Finally, you get back annualized revenue forecasts for planning, along with a key metrics summary like ARPU. ## Frequently Asked Questions **How does calculate_mrr work with my raw data?** It accepts bulk subscription details—like plan price and seat counts—and outputs the definitive total MRR figure. It's designed to process a batch of data at once. **Can I use calculate_arr if I only have MRR?** Yes, that’s exactly what the tool is for. You feed it your total MRR figure, and it converts it into an annualized revenue forecast (ARR) using established financial formulas. **What is the best way to track lost revenue?** Use `calculate_churn_impact`. This tool takes your current MRR alongside a churn rate percentage, giving you a precise estimate of how much revenue you’re losing month over month. **How do I plan for next year's sales?** Run `project_revenue`. This tool lets you input an initial MRR and set the desired time period, generating a forecast that shows potential revenue growth for multiple months ahead. **What are the limits when I use the `calculate_mrr` tool with a large data set?** The MCP handles batch processing for thousands of subscriptions. While it processes massive inputs, keep in mind that performance is best if you send data in manageable chunks (under 10,000 records) to maintain speed. **Does `get_metrics_summary` provide ratios I need for operational planning?** Yes. It generates core SaaS metrics like ARPU and Net Revenue Retention in one go. This gives you a complete snapshot of your customer value without needing to run multiple calculations. **What assumptions does the `project_revenue` tool make when forecasting?** This tool projects revenue based on a starting MRR and a sustained growth rate percentage. It assumes linear, stable growth for the entire period, so adjust the expected rate if your sales cycle is seasonal or non-linear. **How do I ensure that `calculate_arr` remains accurate across different fiscal years?** The tool accurately annualizes your MRR by multiplying it by 12. For true multi-year planning, you must manually account for any planned product changes or major structural shifts before running the final calculation. **What is the difference between MRR and ARR?** MRR tracks predictable monthly revenue. To annualize this, use the `calculate_arr` tool. It takes your calculated MRR figure and multiplies it by twelve to give you the Annual Recurring Revenue (ARR). **How do I separate New, Expansion, and Churn revenue?** You must first use the `calculate_mrr` tool to get the total MRR. Then, pass this detailed output into a subsequent aggregation step (conceptually represented by `aggregate_mrr_components`) to get the breakdown of New, Expansion, and Churn revenue streams. **Can I project future revenue based on current growth?** Yes. After calculating your Net New MRR, you can use the `project_revenue` tool. This tool takes a starting MRR and the number of months (1-36) to generate a projected revenue total.