MRR Calculator
Calculate monthly recurring revenue and annual run rate.
Results update as you type.
How it works
An MRR calculator gives a subscription business its heartbeat: the predictable revenue it earns every month from paying customers. You enter the number of paying customers and the average revenue each contributes per month, sometimes called ARPU, and the tool returns your monthly recurring revenue along with the annual run rate that projects it across a full year. MRR is the metric that makes subscription businesses so attractive and so measurable, because unlike one-off sales it recurs, letting you forecast income, plan hiring and spending, and see the compounding effect of adding customers. Watching MRR move month to month tells a richer story than a single revenue figure ever could: new customers add to it, upgrades expand it, downgrades contract it, and churn subtracts from it, so tracking those components reveals exactly where growth is coming from and where it is leaking. The annual run rate, MRR multiplied by twelve, translates the monthly figure into a yearly headline that investors and operators use to size the business, though it assumes the current base holds steady. Because MRR is normalised to a monthly amount, it lets you compare periods cleanly even when customers pay annually or on different plans. Founders, SaaS operators, growth teams and finance leads use an MRR calculator to track momentum, set and monitor targets, model the impact of pricing and retention changes, and communicate the health of the business in a single, forward-looking number. It converts a roster of subscribers into the recurring revenue engine at the centre of the company's plans.
MRR = paying customers × average monthly revenue per customer
Monthly recurring revenue multiplies the number of paying customers by the average revenue each one pays per month, giving the predictable income a subscription business earns every month. Multiplying MRR by twelve projects it into an annual run rate, the yearly revenue the current base would produce if nothing changed. Because it counts only recurring subscription revenue, it deliberately excludes one-off fees, isolating the stable, compounding income that makes subscription businesses so valuable and so easy to forecast and plan around.
Source:Standard SaaS metric (MRR)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter paying customers and avg revenue per customer.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Monthly recurring revenue updates instantly as you type — no button to press.
Frequently asked questions
What is monthly recurring revenue?
Monthly recurring revenue, or MRR, is the predictable subscription income a business earns each month from its paying customers. It counts only recurring revenue, excluding one-time charges like setup fees, so it reflects the stable base you can rely on and forecast. MRR is the foundational metric for subscription and SaaS businesses because it turns a collection of individual subscriptions into a single, repeatable number that reveals momentum and underpins planning, budgeting and valuation.
How is MRR different from ARR?
MRR is monthly recurring revenue, while ARR is annual recurring revenue, essentially MRR multiplied by twelve. They measure the same underlying subscription income at different time scales. Smaller and faster-moving businesses often track MRR because monthly changes are meaningful, while larger enterprises with annual contracts frequently lead with ARR. This calculator shows both, giving the monthly figure and the annual run rate so you can speak to whichever audience needs which frame.
What does average revenue per customer mean?
Average revenue per customer, sometimes called ARPU, is the mean monthly amount each paying customer contributes, found by dividing total monthly recurring revenue by the number of customers. It smooths over the fact that customers sit on different plans and price points. Multiplying ARPU by your customer count reconstructs MRR, and tracking ARPU over time shows whether upsells, plan changes and pricing are lifting the value of each customer or eroding it.
Why does MRR matter for planning?
MRR matters because its predictability lets you plan with confidence. Knowing roughly how much revenue will recur next month, and the month after, supports decisions about hiring, marketing spend and product investment that one-off revenue cannot. It also makes growth legible: comparing this month's MRR to last month's, and breaking the change into new, expansion, contraction and churned revenue, shows exactly what is driving the business forward or holding it back, guiding where to focus.
Is annual run rate the same as guaranteed revenue?
No. Annual run rate simply projects your current MRR forward twelve months, assuming the customer base and pricing stay exactly as they are today. It is a useful snapshot for sizing the business but not a guarantee, because churn, downgrades, new sales and price changes will all move the real figure. Treat run rate as an indicative annualisation of this moment rather than a forecast, and pair it with churn and growth trends for a realistic outlook.