MRR Calculator
Compute monthly recurring revenue from customers and ARPU, a direct MRR total, or a simple new/expansion/churn waterfall.
Calculator
Results
MRR
$25,000.00
Implied ARR
$300,000.00
What this means
MRR is a run-rate snapshot. Keep one-time fees out of MRR so growth and churn stay comparable month to month.
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MRR Summary
MRR is your normalized monthly subscription revenue. Common shortcuts: Customers × ARPU, or New + Expansion − Churned MRR. ARR ≈ MRR × 12.
Explanation
MRR is the recurring monthly revenue total for the method you selected.
Implied ARR annualizes that MRR by multiplying by 12.
Business implication: MRR is the heartbeat metric for subscription businesses—track it before vanity signups.
Step-by-step example
200 customers at $125 ARPU:
- MRR: 200 × $125 = $25,000
- ARR: $25,000 × 12 = $300,000
Formula
MRR = Customers × ARPU
or MRR = New MRR + Expansion MRR − Churned MRR
ARR = MRR × 12
Helpful tips
- Normalize annual contracts to monthly amounts before adding to MRR.
- Pair with churn and LTV so growth isn’t hiding a leaky bucket.
FAQ
What is MRR?
Monthly recurring revenue is the predictable subscription revenue you expect each month from active customers, normalized to a monthly amount.
Should one-time fees count in MRR?
Usually no. Setup fees and non-recurring services are kept out of MRR so the metric stays comparable month to month.
What is the waterfall method?
It estimates net MRR change as new MRR + expansion MRR − churned MRR. Use it when tracking growth drivers rather than a full customer count.
How accurate is this calculator?
It matches the formula for the inputs you provide. Billing quirks (annual plans booked monthly, discounts, trials) should be normalized first.
Related tools
Key terms
MRR
Definition. Monthly recurring revenue—normalized subscription revenue you expect every month.
In simple terms. MRR smooths annual and monthly plans into a monthly run-rate so growth and churn are easier to compare. One-time setup fees usually are not MRR.
MRR ≈ sum of normalized monthly subscription amounts
Example. Ten customers on $50/month and two on $600/year ($50/month each) → $600 MRR.
Common mistake. Mixing one-time revenue into MRR or forgetting to normalize annual plans.
Related calculators. MRR Calculator, ARR Calculator
ARR
Definition. Annual recurring revenue—subscription revenue expressed on an annualized basis.
In simple terms. ARR is often MRR × 12 (with consistent definitions). Investors and SaaS operators use it to talk about scale without monthly noise.
ARR ≈ MRR × 12 (when definitions align)
Example. $8,000 MRR → about $96,000 ARR.
Common mistake. Annualizing non-recurring revenue or inconsistent MRR definitions.
Related calculators. ARR Calculator, MRR Calculator
Related terms. MRR, LTV, LTV:CAC ratio
LTV
Definition. Customer lifetime value—estimated gross profit (or revenue, depending on model) from a customer over the relationship.
In simple terms. LTV helps you decide how much you can spend to acquire a customer. Simple models use average revenue, margin, and lifespan or churn.
Common simple form: LTV ≈ ARPU × gross margin × average customer lifespan
Example. $50/month, 70% margin, 24-month average life → LTV ≈ $840 in that model.
Common mistake. Using revenue LTV against costs that need gross-profit LTV—or ignoring churn.
Related calculators. LTV Calculator, LTV:CAC Ratio Calculator
Related terms. CAC, LTV:CAC ratio, MRR
Notes & Assumptions
MRR/ARR are standard SaaS operating metrics used by founders, operators, and investors.
Last reviewed: July 2026