Startups & SaaS
MRR Calculator
Work out monthly recurring revenue and convert it to annual.
MRR Calculator
All math runs locally in your browser. Nothing is uploaded.
How it works
Monthly recurring revenue multiplies the average price per customer by the number of paying customers. It is the core health metric for subscription businesses because it is predictable and grows with the customer base.
MRR answers whether the business is compounding or flat. Watch it alongside new customer additions and churn: rapid growth with heavy churn means the base is leaky, while slow growth with low churn builds a durable business.
Formula
MRR = Average price per customer × Paying customers
ARR = MRR × 12. Annual recurring revenue annualizes the monthly figure.
Worked example
Example: 300 customers at $49 a month. MRR = 300 × 49 = $14,700. ARR = 14700 × 12 = $176,400. Add 30 customers a month and MRR grows by roughly $1,470 monthly.
WORKED EXAMPLE — DEFAULT INPUTS
What to know
MRR decomposes into new business and the base. New MRR comes from acquiring customers; expansion MRR comes from upgrades and add-ons; contraction and churn pull it down. Net new MRR is the sum, and watching the split tells you whether growth is driven by acquisition or by keeping existing customers happy.
Many teams track MRR with a cohort view: what does each month of customers contribute today? Strong cohorts retain and expand; weak cohorts quietly decay. The metric becomes far more informative when you look past the headline number.
ARR Calculator
Annual recurring revenue annualizes MRR for planning and valuation. Investors and analysts quote ARR for annual comparisons, while the team manages from MRR. The conversion is a single multiplication.
ARR Calculator
All math runs locally in your browser. Nothing is uploaded.
FAQ
What is a good MRR growth rate?
A common benchmark for healthy SaaS is 10-15% monthly growth early on, slowing as the base grows. Compare against your stage and category.
Is MRR the same as revenue?
Close but not identical. MRR counts recurring subscriptions; one-time fees, setup charges and hardware sales are usually excluded.
How is ARR different from MRR?
ARR is simply MRR multiplied by 12, used for annual planning and valuation conversations. Keep the monthly figure as the operating number.
Does MRR include upgrades and downgrades?
In a full picture yes: new MRR, expansion MRR, downgrade MRR and churned MRR combine into the net change each month.