MRR Calculator
Calculate your Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR). Track new, churned, and expansion revenue to understand your subscription growth.
Subscription Metrics
Monthly subscription price
Monthly Changes (Optional)
Upgrades and add-ons
Enter subscriber count and ARPU to calculate MRR.
Understanding MRR Components
New MRR
Revenue from newly acquired customers in the current month. This is your primary growth driver and indicates sales and marketing effectiveness.
Expansion MRR
Additional revenue from existing customers through upgrades, add-ons, or increased usage. High expansion MRR indicates strong product-market fit.
Churned MRR
Revenue lost from cancelled subscriptions. Keep monthly churn below 5% for healthy SaaS metrics. Enterprise businesses often achieve under 2%.
Net MRR Growth
New MRR + Expansion MRR - Churned MRR. Positive net MRR growth means your business is expanding. Aim for net revenue retention above 100%.
Frequently Asked Questions
What is MRR (Monthly Recurring Revenue)?
MRR is the predictable revenue your business earns each month from active subscriptions. It normalizes different billing cycles (monthly, quarterly, annual) into a monthly figure, making it essential for forecasting and measuring subscription business health.
How do I calculate MRR?
Basic MRR = Number of Subscribers × Average Revenue Per User (ARPU). For mixed plans, sum the monthly value of all active subscriptions. Annual plans should be divided by 12 to get monthly MRR.
What is the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is MRR × 12. MRR shows monthly performance and is better for short-term tracking. ARR is preferred for yearly planning, investor reporting, and comparing to annual expenses.
What is Net MRR?
Net MRR = New MRR + Expansion MRR - Churned MRR - Contraction MRR. It shows actual monthly growth by accounting for new customers, upgrades, cancellations, and downgrades. Positive net MRR indicates healthy growth.
What is a good MRR growth rate?
Early-stage companies often target 10-20% month-over-month MRR growth. As businesses scale, 5-10% monthly growth is strong. For mature subscription businesses, 2-5% monthly growth (30-80% annually) is considered healthy.
