MRR Calculator
Calculate your monthly recurring revenue (MRR) and annualized run rate (ARR) from your customer count and average revenue per customer.
Monthly recurring revenue
$5,880.00
What Your Result Means
MRR represents the predictable revenue your subscription business generates each month. ARR simply multiplies that by 12 to show what your business would generate annually at your current MRR - useful for high-level planning, though it doesn't account for growth or churn during the year.
How It Is Calculated
MRR = Number of Customers × Average Revenue per Customer
ARR = MRR × 12
Worked Example
With 120 customers paying an average of $49 per month, MRR = 120 × $49 = $5,880. ARR = $5,880 × 12 = $70,560.
Important Assumptions
- Assumes all customers are on recurring monthly plans - annual plans should be normalized to a monthly equivalent first.
- ARR is a simple annualized projection, not a forecast that accounts for growth or churn.
Frequently Asked Questions
- How do I handle annual subscription plans?
- Divide the annual plan price by 12 to get its monthly equivalent, then include that customer in your average revenue per customer calculation.
- What is net new MRR?
- Net new MRR is the change in MRR from new customers plus expansion revenue (upgrades) minus churned MRR (cancellations and downgrades) - it shows your growth trend, not just a snapshot.
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Methodology
This calculator uses standard SaaS metrics definitions for MRR and ARR. See our methodology page for details.
Results depend entirely on the assumptions and figures you enter. Actual business performance may differ. This calculator does not provide accounting, tax, or legal advice.