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.
MRR: what it means (and how to track it cleanly)Bookings vs ARR: definitions, formulas, and examplesARPU growth decomposition: what drove revenue (ARPU vs users)ARR growth rate: how to measure recurring momentum
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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
- Count paying customers (or active subscriptions) for the period.
- Estimate ARPA per month (average revenue per account per month).
- Multiply customers by ARPA to estimate MRR.
- 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.
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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.