MRR (Monthly Recurring Revenue) Calculator
Calculate your MRR from monthly and annual subscription plans, then add this month's new, expansion, contraction and churned MRR to see net new MRR, growth rate and ARR.
MRR (Monthly Recurring Revenue) is the predictable subscription revenue a business earns in one month, with every plan converted to a monthly amount. Annual plans are divided by 12, and one-time fees are left out. ARR is MRR × 12, and net new MRR shows how much MRR grew or shrank this month.
How to Calculate MRR: Worked Example
A SaaS company has 400 customers on a $49 monthly plan and 60 customers on a $468 annual plan. This month it signed $1,500 of new MRR, gained $600 from upgrades, lost $200 to downgrades and $900 to cancellations. Entering those figures above gives:
| Step | Calculation | Result |
|---|---|---|
| Monthly-plan MRR | 400 × $49 | $19,600 |
| Annual-plan MRR | 60 × $468 ÷ 12 | $2,340 |
| Total MRR | $19,600 + $2,340 | $21,940 |
| ARR | $21,940 × 12 | $263,280 |
| Net new MRR | $1,500 + $600 − $200 − $900 | $1,000 |
| Starting MRR (last month) | $21,940 − $1,000 | $20,940 |
| MRR growth rate | $1,000 ÷ $20,940 | 4.8% month over month |
Note that the annual customers count as $39 each per month ($468 ÷ 12), not $468 in the month they paid. Booking the full annual payment as MRR would overstate that month and understate the next eleven.
What Is Monthly Recurring Revenue?
Monthly Recurring Revenue (MRR) is the predictable, normalized revenue a subscription business earns each month. It smooths out one-time charges, annual plans, and discounts into a single monthly figure. MRR is the foundation metric for SaaS and subscription companies because it reveals revenue momentum, helps forecast growth, and is the first number investors look at when evaluating a business.
MRR Formulas
MRR = Subscribers × ARPU
MRR with annual plans = (Monthly subscribers × monthly price) + (Annual subscribers × annual price ÷ 12)
ARR = MRR × 12
Net New MRR = New MRR + Expansion − Contraction − Churned
MRR Growth Rate = Net New MRR ÷ Starting MRR × 100
MRR Components Explained
Healthy MRR growth comes from four components. New MRR is revenue from first-time customers. Expansion MRR comes from upgrades and upsells. Contraction MRR reflects downgrades. Churned MRR is revenue lost from cancellations. Net New MRR combines all four. A business with strong net new MRR is growing; negative net new MRR means revenue is shrinking even if new customers are signing up.
This calculator covers core MRR and the full monthly movement in one place. For a deeper look at a single component, use the dedicated expansion MRR calculator, contraction MRR calculator or committed MRR (CMRR) calculator.
MRR vs ARR and When to Use Each
ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. Early-stage and SMB-focused SaaS companies typically track MRR because it shows month-to-month momentum. Enterprise SaaS companies with annual contracts often report ARR because their revenue cycle is annual. Both metrics exclude one-time fees, setup charges, and professional services to keep the recurring signal clean.
| MRR | ARR | |
|---|---|---|
| Stands for | Monthly Recurring Revenue | Annual Recurring Revenue |
| Formula | Sum of all plans normalised to one month | MRR × 12 |
| Best for | Monthly plans, early-stage and SMB SaaS | Annual or multi-year contracts, enterprise SaaS |
| Shows | Month-to-month momentum and churn quickly | Scale and run-rate for planning and valuation |
| Example ($21,940 MRR) | $21,940 | $263,280 |
What to Include and Exclude in MRR
- Include: recurring subscription fees from paying customers, after discounts.
- Normalise: annual plans ÷ 12, quarterly plans ÷ 3, so every plan is a monthly amount.
- Exclude: one-time setup or onboarding fees, consulting and professional services, hardware, and sales tax or VAT.
- Exclude: free trials and free plans until the customer starts paying.
- Be consistent: whatever rule you choose for usage-based or overage charges, apply it the same way every month so MRR growth stays comparable.
Tips for Getting Accurate Results
For the most accurate results, use up-to-date numbers from official sources. Double-check your inputs before calculating — small errors in the starting values can lead to significantly different outputs. If you are comparing scenarios, keep all variables the same except the one you are testing. Save or screenshot your results for future reference. This calculator uses standard formulas and is designed to give you a reliable quick estimate, though professional advice may be needed for complex situations.
Last updated: October 2026
Frequently Asked Questions
What is MRR vs ARR?
MRR is Monthly Recurring Revenue. ARR is Annual Recurring Revenue (MRR × 12). ARR is typically used for enterprise SaaS, while MRR is standard for most SaaS companies.
Is MRR Calculator free to use?
Yes, MRR Calculator is completely free with no sign-up, no login, and no hidden fees. The tool runs entirely in your browser — your data never leaves your device.
Is my data safe when using this tool?
Yes. This tool runs 100% in your browser using JavaScript. No data is sent to any server, stored in any database, or shared with any third party. When you close the page, processing stops immediately.
Does this tool work on mobile devices?
Yes. MRR Calculator is fully responsive and works on smartphones, tablets, and desktop computers. The interface adapts to your screen size automatically.
Can I use this tool offline?
Yes. Once the page has loaded, MRR Calculator works without an internet connection. All processing happens locally in your browser.
How do you calculate MRR?
Multiply the number of subscribers on each plan by its monthly price and add the results. Convert annual plans to monthly by dividing the annual price by 12. For example, 400 customers at $49 per month plus 60 customers at $468 per year gives $19,600 + $2,340 = $21,940 MRR.
How do annual plans count toward MRR?
An annual plan counts as one twelfth of its price in every month of the contract, not the full amount in the month it was paid. A $468 per year plan adds $39 of MRR each month. Quarterly plans are divided by 3 in the same way.