What your result means (before you calculate)
MRR is monthly recurring revenue from subscriptions—sum each active customer’s monthly price (normalize annual deals to a monthly equivalent). Track new, expansion, contraction, and churn components separately.
Worked example (MRR stack)
Start $50k MRR, add $8k new, $2k expansion, lose $3k churn → ending MRR = 50 + 8 + 2 − 3 = $57k (+14% net growth).
What your result means (before you calculate)
MRR is monthly recurring revenue from subscriptions—sum each active customer’s monthly price (normalize annual deals to a monthly equivalent). Track new, expansion, contraction, and churn components separately.
Worked example (MRR stack)
Start $50k MRR, add $8k new, $2k expansion, lose $3k churn → ending MRR = 50 + 8 + 2 − 3 = $57k (+14% net growth).
This MRR calculator is for educational and planning purposes only. Results are estimates based on the information provided and should not be considered as financial advice. Actual revenue may vary due to churn, payment failures, and other factors. Always consult with qualified financial professionals and accountants for business financial planning. For complete disclaimers, please see our disclaimer page.
A Monthly Recurring Revenue (MRR) calculator is a financial tool that helps SaaS companies and subscription businesses calculate and analyze their monthly subscription revenue. It provides detailed breakdowns of revenue by plan type, billing cycle, and growth metrics to help you understand your business's financial health and trajectory.
Unlike one-time sales, MRR represents the predictable revenue stream from recurring subscriptions. This calculator handles both monthly and annual billing plans, prorated calculations, and growth analysis to give you a complete picture of your subscription business revenue.
MRR is arguably the most important metric for SaaS companies. While ARR shows annual commitments, MRR reveals the actual monthly cash flow that keeps your business running. Understanding your MRR helps you predict runway, plan hiring, and make strategic decisions about pricing and product development.
MRR is more than just a number—it's your business's financial foundation. Use this calculator to track growth, identify trends, and make data-driven decisions that drive sustainable business success.
MRR represents the total recurring revenue your business can expect to receive every month from active subscriptions. It's calculated differently for monthly and annual billing plans to ensure accurate monthly cash flow projections.
This approach ensures that whether a customer pays $100/month or $1,200/year, both contribute equally to your monthly revenue calculations. Annual plans provide cash flow advantages but are calculated consistently for MRR reporting.
Where:
• Monthly Plans = Monthly Price × Monthly Subscribers
• Annual Plans = (Annual Price ÷ 12) × Annual Subscribers
• Total MRR = Sum of all plan contributions
Total MRR: $75,925
ARR Equivalent: $911,100
Monthly Growth: 15% (vs previous month)
Total MRR: $292,500
ARR Equivalent: $3,510,000
Annual Churn Rate: 5-7% (industry average)
While MRR shows current revenue, Net Revenue Retention reveals how much revenue you're keeping from existing customers after upgrades, downgrades, and churn. Aim for 110%+ net retention through expansion revenue.
Track MRR by customer acquisition cohorts to understand long-term value. Customers acquired during product-market fit periods often have higher lifetime value than those acquired during growth hacking phases.
Not all MRR is created equal. Score your revenue by predictability, profitability, and growth potential. Annual contracts from enterprise customers score higher than monthly SMB subscriptions.
Divide the annual subscription amount by 12 to get the monthly equivalent. For example, a $1,200 annual subscription contributes $100 to your MRR.
MRR is monthly recurring revenue, while ARR (Annual Recurring Revenue) is MRR multiplied by 12. MRR shows cash flow, ARR shows annual commitments.
No, MRR only includes paying subscribers. Track trial conversion rates separately to understand the pipeline from trials to paid subscriptions.
For prorated billing, calculate the actual amount billed that month. If a customer upgrades mid-month, only include the prorated amount for that month's MRR.
Early-stage startups should target 15-25% monthly growth. Growth-stage companies typically see 5-15% monthly growth. Focus on sustainable growth over aggressive expansion.
Calculate Annual Recurring Revenue and annual projections.
Calculate Customer Lifetime Value and retention metrics.
Calculate Customer Acquisition Cost and ROI analysis.
Analyze per-customer revenue vs. costs.
Determine profitability thresholds.
Project monthly cash flow and runway.