MRR Calculator
MRR (monthly recurring revenue) is what your active subscriptions bring in every month: paying customers × average revenue per account, with annual and quarterly plans counted at their monthly value. 120 customers paying $49 a month is $5,880 MRR, and ARR (MRR × 12) is $70,560. Enter your own numbers or your plan mix below, then one month of new, expansion, contraction and churned MRR for net new MRR, churn rates and a 12-month projection.
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How to calculate MRR
Add up the monthly value of every active paid subscription. With one price, or an average across all of them, that is a single multiplication:
MRR = paying customers × average revenue per account (ARPA)
With several plans, multiply each plan's monthly price by its customers and add the results. An annual plan counts as its price divided by 12, a quarterly plan as its price divided by 3. The plan mix the calculator opens with has 50 customers on $19 a month ($950), 55 on $49 a month ($2,695) and 15 on a $490 annual plan, $40.83 a month each ($612.50). Together that is $4,257.50 MRR from 120 customers, an ARPA of $35.48.
What counts as MRR
MRR is the revenue you can expect again next month if nothing changes. Anything that will not repeat on its own stays out of it.
| Revenue | In MRR | How it counts |
|---|---|---|
| Monthly subscriptions | Yes | At the price the customer pays |
| Annual and quarterly plans | Yes | Divided by 12, or by 3 |
| Discounted subscriptions | Yes | At the discounted price, while the discount runs |
| Free trials and free plans | No | Zero until the first paid invoice |
| Setup and onboarding fees | No | Paid once, so they do not recur |
| Sales tax and VAT | No | Collected for the tax authority |
If you bill metered usage, count the part each customer is committed to and track the rest on its own line, so one busy month does not read as growth. Payment fees do not come off MRR either: they are a cost of collecting the revenue. To see what each payment costs, use the Stripe fee calculator.
Net new MRR: four movements
MRR changes for four reasons, and net new MRR is what they add up to. A customer who cancelled and later came back is often tracked as reactivation; in this calculator, enter it as new MRR.
Net new MRR = new + expansion - contraction - churned
| Movement | What it is | Example month |
|---|---|---|
| New MRR | First payments from new customers | +$980.00 |
| Expansion MRR | Upgrades, extra seats and add-ons | +$245.00 |
| Contraction MRR | Downgrades and removed seats | -$98.00 |
| Churned MRR | Customers who cancelled | -$294.00 |
| Net new MRR | The sum of the four | +$833.00 |
The calculator's example: 120 customers at $49 a month, $5,880 MRR at the start of the month.
That month ends on $6,713 MRR, 14.2% up on the $5,880 it started with. A healthy net figure can hide a churn problem that is growing underneath it, which is why the calculator prints the churn rates next to it.
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Revenue churn, customer churn and net revenue retention
Churn has two measures, and they can tell different stories. Revenue churn (gross MRR churn) is the MRR lost to cancellations and downgrades, divided by the MRR the month started with. Customer churn counts accounts: customers who cancelled, divided by customers at the start.
In the example, $392 of $5,880 is lost, a revenue churn of 6.7%, while 6 of 120 customers cancel, a customer churn of 5%. Revenue churn comes out higher because it also counts the $98 of downgrades, money lost without losing a customer. When the accounts that leave are your largest, the gap grows further.
Net revenue retention = (starting MRR + expansion - contraction - churned) ÷ starting MRR
Net revenue retention adds expansion back in. The example keeps $5,733 of its $5,880, 97.5%, so its net MRR churn is 2.5%. Above 100%, upgrades from existing customers outweigh everything they cancel or downgrade, and MRR rises even in a month with no new sales.
From MRR to ARR
ARR (annual recurring revenue) is MRR × 12: the yearly value of the subscriptions active now. It is a run rate, not the revenue booked this year and not a forecast: $5,880 MRR is $70,560 ARR in a company's second month and in its tenth year alike.
MRR is not the cash a month brings in, either. A customer on the $490 annual plan puts $490 in the bank in the month they pay, and $40.83 into MRR in every month of the year. Count cash and each annual renewal shows up as a spike; count MRR and the line moves only when the subscriptions do.
Projecting MRR and where it levels off
Step 3 of the calculator carries one month forward: the same new MRR every month, and the same expansion, contraction and churn as a share of whatever MRR each month starts with. From the example's $6,713, MRR passes $10,000 in month 5 and reaches $15,225 after 12 months.
Growth slows as MRR grows, because new MRR arrives as an amount and churn leaves as a percentage. MRR stops rising where the two meet:
MRR ceiling = new MRR per month ÷ (churn rate - expansion rate)
The example adds $980 a month and loses 2.5% net, so it levels off near $39,200. Two levers move that ceiling: more new MRR each month, or lower net churn. Halving net churn doubles it.
Have MRR? Now get found
Every line in that projection starts with someone finding the product. MRR counts the customers who already did. The next ones come through search, recommendations and lists, and a product can have paying customers long before many sites link to it.
Directories are the quickest of those to start on. Each one that accepts the product lists it with a link back to the site. If you sell software, the SaaS directories page ranks them by Domain Rating and shows which ones ask for a badge and which ones give a followed link.
You choose the directories in our catalog; Submitator handles every form, with a separate description written for each one. Where a directory asks for a badge on your site, Submitator installs it with one component and keeps it live, with no commit per directory. The Starter plan covers 30 directories for $29, one-time. Most directories are delivered in 24 to 48 hours, every directory within 21 days at most.
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FAQ
How do you calculate MRR?
Multiply paying customers by the average revenue per account a month or, with several plans, multiply each plan's monthly price by its customers and add the results. 120 customers at $49 a month is $5,880 MRR. Annual plans count at a twelfth of their price and quarterly plans at a third, so a $490 annual plan adds $40.83 a month.
Is MRR the same as monthly revenue?
No. MRR counts only recurring subscription revenue, at its monthly value, whatever month the invoice lands in. A month's revenue also takes in one-time fees and usage beyond the plan, and a month's billings take in the full price of every annual plan invoiced in it: a customer paying $490 for a year adds $490 to one month's billings and $40.83 to MRR in each of the twelve.
What is the difference between MRR and ARR?
ARR is MRR × 12, the same recurring revenue measured over a year: $5,880 MRR is $70,560 ARR. Both are run rates, the monthly or yearly value of the subscriptions active now. Neither is revenue already earned, and neither is a forecast.
What is net new MRR?
The change in MRR over a month: new MRR + expansion MRR - contraction MRR - churned MRR. With $980 new, $245 expansion, $98 contraction and $294 churned, net new MRR is $833 and MRR moves from $5,880 to $6,713.
How do you calculate MRR churn rate?
Divide the MRR lost in a month to cancellations and downgrades by the MRR the month started with. Losing $294 to cancellations and $98 to downgrades out of $5,880 is a revenue churn rate of 6.7%. Customer churn rate counts accounts instead: 6 cancellations out of 120 customers is 5%.
What is net revenue retention?
The share of starting MRR that existing customers still pay at the end of the month, expansion included: (starting MRR + expansion - contraction - churned) ÷ starting MRR. Keeping $5,733 of $5,880 is 97.5%. Above 100%, expansion outweighs what churns and MRR grows even in a month with no new customers. Many SaaS companies report it over twelve months instead, on the customers they had a year earlier; this calculator measures one month.
Do free trials, discounts and one-time fees count toward MRR?
Free trials and free plans count as zero until the first paid invoice. A discounted subscription counts at the price the customer actually pays, for as long as the discount runs. One-time setup or onboarding fees stay out because they do not recur, and sales tax and VAT stay out because they are not your revenue.
How do you calculate MRR growth rate?
Divide net new MRR by the MRR at the start of the month, which is the same as (MRR at the end - MRR at the start) ÷ MRR at the start. Going from $5,880 to $6,713 is 14.2% growth in a month.
Why does MRR growth slow down as MRR grows?
When new MRR holds roughly steady from month to month, churn still takes a percentage of a base that keeps getting bigger, so each month's loss grows while the gain does not. MRR levels off where the two cancel out, at new MRR ÷ (churn rate - expansion rate). Adding $980 a month at 2.5% net churn levels off near $39,200; halving net churn doubles that ceiling.
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