MRR Calculator
Calculate your SaaS Monthly Recurring Revenue (MRR), Annual Run Rate (ARR), and Average Revenue Per User (ARPU) across account subscription tiers.
Total Monthly Recurring Revenue (MRR)
How to Calculate Monthly Recurring Revenue
Monthly Recurring Revenue (MRR) measures normalized monthly subscription earnings across all active customer accounts. MRR excludes one-time installation fees, non-recurring consulting revenue, and irregular charges to provide a stable operating metric.
Using this calculator requires inputting:
- Active Paid Subscribers: The total number of unique paying accounts currently on active billing schedules.
- Average Monthly Price (ARPU): Your base monthly subscription price per tier or account average.
- Monthly Expansion Add-ons: Recurring revenue generated from add-on modules, extra user seats, and usage baseline tiers.
The MRR Formula
Basic Monthly Recurring Revenue is calculated by multiplying total active subscribers by your average revenue per user and adding expansion add-ons:
MRR = (Active Subscribers x Base ARPU) + Monthly Add-on Revenue
For example, if you have 250 subscribers paying $49 per month plus $1,250 in recurring add-ons: (250 x $49) + $1,250 = $12,250 + $1,250 = $13,500.00 MRR.
Annual Run Rate (ARR) Conversion
To convert current MRR into your Annualized Run Rate (ARR):
ARR = MRR x 12
For $13,500 MRR, your ARR is $13,500 x 12 = $162,000.00 ARR.
MRR Milestones Across Subscriber Scale
The table below summarizes total MRR and ARR milestones based on subscriber account volume and pricing tiers.
| Active Accounts | Average ARPU | Total MRR | Annual Run Rate (ARR) |
|---|---|---|---|
| 100 | $29.00 | $2,900.00 | $34,800.00 |
| 250 | $54.00 | $13,500.00 | $162,000.00 |
| 1,000 | $99.00 | $99,000.00 | $1,188,000.00 ($1.18M ARR) |
Frequently Asked Questions
What types of revenue should be excluded from MRR?
Exclude one-off setup fees, custom implementation services, hardware sales, and non-recurring professional consulting revenue. MRR measures strictly predictable subscription cash flows.
How do annual upfront payments affect MRR calculations?
If a customer pays $1,200 upfront for an annual subscription, divide the total payment by 12 months to record $100 per month in MRR rather than recording $1,200 in a single month.
What is Net New MRR?
Net New MRR equals New MRR plus Expansion MRR minus Contraction MRR and Churned MRR. Net New MRR measures overall monthly revenue momentum.
