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MRR Calculator

Calculate your Monthly Recurring Revenue, ARR, growth rate, and churn impact. Break down existing, new, and churned MRR to understand your subscription revenue dynamics.

Total paying subscribers this month

$

Average monthly revenue per customer (ARPU)

Customers who subscribed this month

Customers who cancelled this month

Enter your subscription data and click Calculate to see your MRR breakdown.

How MRR Works

What is Monthly Recurring Revenue?

Monthly Recurring Revenue (MRR) is the total predictable revenue your business generates from all active subscriptions in a given month. It normalizes different billing plans, discounts, and payment schedules into one consistent monthly figure, making it the foundational metric for subscription and SaaS businesses.

How to Calculate MRR

The basic MRR formula is:

  • MRR = Number of Paying Customers x Average Revenue Per User (ARPU)

For a more complete picture, break MRR into its components. Existing MRR is what you carried forward from last month. New MRR comes from customers who subscribed this month. Churned MRR is revenue lost from customers who cancelled. Net New MRR is the difference between new and churned MRR, representing the actual change in your recurring revenue base.

ARR and Growth Rate

ARR (Annual Recurring Revenue) is MRR multiplied by 12 and represents your annualized revenue run rate. MRR Growth Rate measures how fast your recurring revenue is increasing, calculated as Net New MRR divided by the previous month's MRR. A positive growth rate means you are adding more revenue from new customers than you are losing to churn.

Net Revenue Retention

Net Revenue Retention (NRR) compares your current MRR to the MRR from the same cohort in the prior period. An NRR above 100% means your existing customer base is generating more revenue over time through upsells and expansion, even after accounting for churn. Top-performing SaaS companies achieve 120%+ NRR, meaning their existing customers alone grow revenue by 20% or more annually without any new sales.

Why MRR Matters

MRR is the heartbeat of any subscription business. It enables accurate forecasting, helps you evaluate the impact of pricing changes, and is the primary metric investors use to assess growth trajectory. Tracking MRR components separately lets you identify whether growth is driven by acquisition, expansion, or improved retention.

Frequently asked questions

Monthly Recurring Revenue (MRR) is the predictable revenue a business earns every month from active subscriptions. It is calculated by multiplying the number of paying customers by the average revenue per user (ARPU). MRR is the single most important metric for SaaS and subscription businesses because it provides a normalized view of revenue that smooths out one-time charges, variable billing cycles, and plan differences into a single consistent number.

ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. While MRR is useful for tracking month-to-month changes, ARR gives a big-picture view of your annual revenue run rate. Investors typically reference ARR when discussing company valuation, especially for enterprise SaaS businesses. Early-stage startups often focus on MRR because it makes growth trends easier to spot, while later-stage companies report ARR to align with annual planning and budgeting cycles.

A good MRR growth rate depends on your stage. Early-stage startups (under $1M ARR) often target 15-20% month-over-month MRR growth. Growth-stage companies ($1M-$10M ARR) typically see 5-10% monthly growth. More mature companies ($10M+ ARR) may grow at 2-5% monthly. The key benchmark is the "triple triple double double double" framework: triple ARR twice, then double it three times to reach $100M+ ARR. Consistent growth matters more than occasional spikes.

Track MRR by breaking it into components: Existing MRR (revenue from customers who were already paying last month), New MRR (revenue from brand-new customers), Expansion MRR (upgrades and upsells from existing customers), Churned MRR (revenue lost from cancellations), and Contraction MRR (revenue lost from downgrades). This decomposition helps you understand what is driving growth or decline and where to focus your efforts. Most SaaS analytics tools automate this tracking.

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