MRR Calculator

Estimate Monthly Recurring Revenue (MRR) from customers and ARPA.

MRR (Monthly Recurring Revenue) is recurring revenue from active subscriptions, normalized to a monthly amount. It is a standard metric for tracking momentum in subscription businesses.

A clean MRR definition excludes one-time fees and services, and normalizes annual plans to a monthly equivalent (annual price / 12).

Prefer an explanation- Read the guide.
Need definitions- Browse the glossary.
 
 
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Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
$50,000.00
Paying customers
250
ARPA per month
$200
Target customers (optional)
0
Target MRR (optional)
$0

How to calculate

  1. Count paying customers (or active subscriptions) for the period.
  2. Estimate ARPA per month (average revenue per account per month).
  3. Multiply customers by ARPA to estimate MRR.
  4. Optionally add targets to back-solve required customers or ARPA.

Formula

MRR = Paying Customers x ARPA (monthly)
  • This is a simplified estimate; real MRR sums subscription amounts.

FAQ

Does MRR include one-time fees-
Typically no - MRR focuses on recurring revenue only. Track one-time fees separately.

Common mistakes

  • Including one-time fees or services revenue in MRR.
  • Mixing bookings/cash with run-rate revenue (MRR is run-rate).
  • Comparing MRR without breaking down new/expansion/contraction/churn components.

How to interpret

MRR best practices
  • Use 'committed' MRR (active subscriptions) rather than invoices.
  • Break down changes: new, expansion, contraction, churn.
  • Track net new MRR to see momentum.

Quick checks

  • Keep time units consistent (monthly vs annual) across inputs and outputs.
  • Segment by cohort/channel/plan before trusting a blended average.
  • Use the related guide to avoid common definition and denominator mismatches.