The Monthly Recurring Revenue (MRR) Calculator is a powerful financial tool designed to help SaaS businesses, subscription services, and startups accurately measure their predictable monthly income. By inputting your number of active subscribers and the average revenue per user (ARPU), this calculator instantly computes your total MRR—allowing you to track growth, forecast revenue, and make informed strategic decisions.
Whether you’re managing multiple subscription tiers or analyzing churn impact, this tool simplifies complex revenue metrics into a quick and actionable figure. Ideal for founders, finance teams, and growth marketers looking to stay on top of recurring revenue performance.
MRR Calculator Pro
Advanced Monthly Recurring Revenue Analytics Tool
Basic MRR Calculator
Monthly Recurring Revenue
Current MRR
Annual Recurring Revenue
Projected ARR (MRR × 12)
Formula Used:
MRR = Total Active Customers × Average Revenue Per User (ARPU)
ARR = MRR × 12
Advanced MRR Breakdown
Net New MRR
Monthly growth/decline
Ending MRR
MRR at period end
MRR Growth Rate
Month-over-month growth
Revenue Churn Rate
Revenue lost to churn
Formulas Used:
Net New MRR = (New + Expansion + Reactivation) – (Contraction + Churn)
Ending MRR = Starting MRR + Net New MRR
Growth Rate = (Net New MRR / Starting MRR) × 100
Revenue Churn = ((Contraction + Churn) / Starting MRR) × 100
MRR Forecasting Tool
12-Month Projection
| Month | MRR | Growth |
|---|
Total Growth
Year-End ARR
Growth Visualization
Key Metrics Dashboard
Customer Lifetime Value (CLV)
Customer CLV
CAC vs CLV Analysis
CLV:CAC Ratio
Payback Period
Health Status
Benchmark: A healthy SaaS business should have a CLV:CAC ratio of at least 3:1, with a payback period under 12 months.
Churn Impact Analysis
Current Annual Churn Loss
Improved Annual Churn Loss
Annual Savings
Industry Benchmarks
Excellent
- • Monthly Churn: < 2%
- • MRR Growth: > 15%
- • CLV:CAC Ratio: 5:1+
- • Payback Period: < 6 months
Good
- • Monthly Churn: 2-5%
- • MRR Growth: 10-15%
- • CLV:CAC Ratio: 3:1-5:1
- • Payback Period: 6-12 months
Needs Improvement
- • Monthly Churn: > 5%
- • MRR Growth: < 10%
- • CLV:CAC Ratio: < 3:1
- • Payback Period: > 12 months
What is Monthly Recurring Revenue (MRR)?
Monthly Recurring Revenue (MRR) is the lifeblood of subscription-based businesses. It represents the predictable, subscription-based income that a company expects to receive every month from its active customers.
Why MRR Matters
- Provides predictable revenue forecasting
- Helps track business growth momentum
- Essential for investor evaluations
- Enables data-driven decision making
- Identifies trends and opportunities
Key Characteristics
- Excludes one-time fees and setup costs
- Normalized to monthly timeframe
- Based on active, paying customers only
- Reflects actual recurring revenue
- Critical for SaaS valuations
Types of MRR
New MRR
Revenue from brand-new customers who started subscriptions during the period.
Expansion MRR
Additional revenue from existing customers through upgrades, upsells, or add-ons.
Churn MRR
Revenue lost from customers who completely canceled their subscriptions.
Contraction MRR
Revenue lost from existing customers who downgraded or reduced their spending.
Reactivation MRR
Revenue from previously churned customers who returned and resubscribed.
Net New MRR
The total change in MRR after accounting for all gains and losses.
Common MRR Calculation Mistakes
Mistakes to Avoid
Including One-Time Fees
Setup fees, implementation costs, and one-time purchases should never be included in MRR calculations.
Counting Free Trials
Only include paying customers. Free trial users don’t contribute to MRR until they convert.
Ignoring Discounts
Use the actual discounted price, not the full price, for customers on promotions.
Annual Payment Errors
Always normalize annual payments to monthly (divide by 12) for accurate MRR calculation.
Best Practices
Track All MRR Components
Monitor New, Expansion, Contraction, Churn, and Reactivation MRR separately for deeper insights.
Use Consistent Timing
Calculate MRR at the same point each month (beginning, middle, or end) for consistency.
Regular Audits
Regularly audit your MRR calculations to ensure accuracy and catch any discrepancies early.
Segment by Customer Type
Track MRR separately for different customer segments, plans, or geographic regions.
Strategies to Improve MRR
Acquire New Customers
- • Improve marketing campaigns
- • Optimize conversion funnels
- • Enhance onboarding process
- • Referral programs
- • Content marketing
Reduce Churn
- • Improve customer success
- • Regular health checks
- • Proactive support
- • Exit interviews
- • Product improvements
Expand Revenue
- • Upsell premium features
- • Cross-sell add-ons
- • Usage-based pricing
- • Account expansion
- • Multi-year contracts
Optimize Pricing
- • A/B test pricing tiers
- • Value-based pricing
- • Remove discounts
- • Annual billing incentives
- • Freemium to paid conversion
The Compound Effect of Small Improvements
Small improvements in key metrics can have massive cumulative effects on MRR growth:
Reduction in churn can increase MRR by 10% annually
Increase in upsells can boost expansion MRR significantly
Price increase can directly improve MRR if churn remains stable
Industry Benchmarks & Standards
MRR Growth Benchmarks
Early Stage (0-$100K MRR)
Target: 15-20% monthly growth
Growth Stage ($100K-$1M MRR)
Target: 10-15% monthly growth
Scale Stage ($1M+ MRR)
Target: 5-10% monthly growth
Churn Rate Benchmarks
Excellent
< 2% monthly churn rate
Good
2-5% monthly churn rate
Needs Improvement
> 5% monthly churn rate
SaaS Rule of 40
The Rule of 40 states that a SaaS company’s growth rate plus profit margin should exceed 40%.
Indicates healthy, sustainable growth
Excellent performance
Focus on profitability
FAQ
How is MRR calculated?
MRR is calculated by summing up all the recurring revenue earned from active subscriptions in a month.
How to calculate MRR and ARR?
MRR (Monthly Recurring Revenue):
MRR = Number of Customers ×Monthly Subscription Price
ARR (Annual Recurring Revenue):
ARR = MRR×12
What is the formula for ARR?
ARR (Annual Recurring Revenue) is a key SaaS metric that represents the recurring revenue expected on an annual basis from subscriptions or contracts.
ARR Formula:
ARR = MRR×12
Where:
MRR = Monthly Recurring Revenue