MRR Calculator
Monthly recurring revenue is the single number that describes a subscription business. Enter your plan mix and movements to see normalised MRR, net new MRR and the ARR it implies.
Inputs
Upgrades, seats added, usage overage.
Result
$10,453
monthly recurring revenue (MRR)
220 customers produce $10,453 of MRR — $8,820 from monthly plans and $1,633 from annual contracts normalised to a month. Net new MRR this month is $300.
- Monthly-plan MRR
- $8,820
- Annual-plan MRR (normalised)
- $1,633
- Total MRR
- $10,453
- Net new MRR
- $300
- ARPA (per account)
- $47.52
- Implied ARR
- $125,440
Formula
- MRR = Σ (customers on a plan × normalised monthly price of that plan)
- annual contract normalised = annual contract value ÷ 12
- net new MRR = new + expansion − contraction − churned MRR
- ARPA = MRR ÷ total customers
Methodology
MRR normalises every contract to a single month so plans of different lengths can be added together. An annual contract is divided by twelve regardless of when the cash arrived — MRR is a run-rate measure, not a cash measure.
One-off charges such as setup fees, professional services and hardware are excluded because they do not recur. Including them inflates MRR and makes growth look better than it is.
Net new MRR is what actually moves the business: new plus expansion minus contraction and churn. A company can add customers every month and still shrink if churned MRR is larger.
These are modelling estimates based on standard SaaS metric definitions. Real results depend on your billing data, contract terms and accounting treatment, so reconcile against your finance system before reporting numbers externally.
Example calculation
- 180 customers pay $49 a month: 180 × $49 = $8,820.
- 40 customers are on $490 annual contracts: (40 × $490) ÷ 12 = $1,633.
- Total MRR: $8,820 + $1,633 = $10,453, or roughly $125,400 of ARR.
- With $900 expansion and $600 churn, net new MRR is +$300 for the month.
Frequently asked questions
What counts towards MRR?
Only recurring subscription revenue. Include monthly plans at face value and annual or multi-year contracts divided by their term in months. Exclude one-off setup fees, services, and refunds.
How do I handle annual contracts in MRR?
Divide the contract value by 12 and count that as MRR each month of the term, regardless of when you invoiced. The cash sits on the balance sheet as deferred revenue while MRR recognises it evenly.
Is MRR the same as revenue?
No. MRR is a forward-looking run rate of contracted subscriptions. GAAP revenue also includes non-recurring items and follows recognition rules, so the two rarely match exactly.
Should discounts be included?
Yes — always use the net price the customer actually pays. Recording list price and ignoring a 20% discount overstates MRR and every metric derived from it.
What is a healthy MRR growth rate?
Early-stage SaaS companies often target 10-15% month over month; at $1M+ ARR, 5-7% monthly (roughly 2× annually) is strong. What matters more is that net new MRR stays consistently positive.
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