MRR Calculator
Monthly Recurring Revenue, or MRR, is the heartbeat of any subscription business, and this calculator works it out from your customer base and average revenue. MRR is the predictable, normalised revenue your subscriptions generate each month, the figure that lets a SaaS company forecast, plan and value itself. Because subscription revenue recurs, MRR smooths out the lumpiness of one-off sales into a steady monthly number that you can track, compare and grow. It is the foundation for almost every other SaaS metric, from growth rate and churn to lifetime value, and it is what investors look at first. This calculator gives you the headline figure and its annual equivalent. You enter your number of active paying customers and your average revenue per account per month, and the calculator returns your MRR, the annualised ARR, which is simply twelve times MRR, and the revenue per customer for reference. The results update as you type, so you can model how adding customers or lifting average revenue grows your recurring base. Use it to track your recurring revenue, to set growth targets, or to convert between monthly and annual figures. A few good practices: count only genuinely recurring revenue, excluding one-off setup fees, professional services and usage spikes that will not repeat; normalise annual contracts to a monthly figure by dividing the annual value by twelve; and track MRR alongside its moving parts, new, expansion, contraction and churned MRR, to understand what is driving the change. MRR growth is the clearest sign of a healthy, scaling subscription business, and watching it month by month tells you far more than a single revenue total ever could.
MRR = customers x average monthly revenue per account. ARR = MRR x 12. Count only recurring revenue; exclude one-off fees and normalise annual contracts to monthly.
How it works
MRR is the number of active paying customers multiplied by the average recurring revenue each pays per month. Multiplying MRR by twelve gives the annualised recurring revenue, ARR. Only genuinely recurring subscription revenue should be counted, with one-off fees excluded and annual contracts divided by twelve.
Worked example
A SaaS business with 200 active paying customers, each paying an average of $80 a month, has an MRR of 200 times $80, which is $16,000. Annualised, that is twelve times $16,000, giving an ARR of $192,000. Adding 50 more customers at the same rate would lift MRR to $20,000.
Related calculators
- ARR Calculator: annual recurring revenue.
- ARPA Calculator: revenue per account.
- Revenue Churn: lost MRR.
- Expansion Revenue: upsell MRR.