Free MRR Calculator
Calculate your Monthly Recurring Revenue and ARR instantly. Track revenue across multiple pricing tiers and project your SaaS growth trajectory.
Your Pricing Tiers
Enter your pricing tiers and customer counts to calculate your MRR.
Understanding MRR Metrics
What is MRR (Monthly Recurring Revenue)?
MRR is the predictable revenue your business generates every month from subscriptions. It's calculated by multiplying your total number of paying customers by the average revenue per customer per month.
Why is MRR Important?
MRR is the most critical metric for SaaS and subscription businesses. It helps you:
- Forecast future revenue and plan growth
- Measure business health and momentum
- Make informed decisions about hiring and spending
- Communicate progress to investors and stakeholders
MRR vs ARR
ARR (Annual Recurring Revenue) is simply your MRR multiplied by 12. While MRR is better for tracking month-to-month growth, ARR is often used when discussing business valuations and larger strategic planning.
Tips for Growing MRR
- Reduce churn by improving product value and customer support
- Implement pricing tiers to capture different customer segments
- Focus on expansion revenue through upsells and cross-sells
- Acquire new customers through sustainable marketing channels
What You'll Get From Our MRR Calculator
More than just a calculator - get the insights you need to understand and grow your subscription revenue.
MRR Calculation
Calculate your total Monthly Recurring Revenue across all pricing tiers and customer segments.
ARR Projection
See your Annual Recurring Revenue and understand your business valuation potential.
Multi-Tier Support
Add multiple pricing tiers to accurately model your entire subscription business.
Revenue Breakdown
See how each pricing tier contributes to your total recurring revenue.
ARPU Metrics
Calculate your Average Revenue Per User to optimize pricing and packaging.
Growth Tracking
Use the calculator regularly to track your MRR growth over time and spot trends.
Example MRR Calculations
See how MRR is calculated for different SaaS business models and pricing structures.
Early-Stage SaaS
50 customers × $29/mo = $1,450
20 customers × $79/mo = $1,580
5 customers × $199/mo = $995
Total MRR: $4,025
ARR: $48,300
Growing SaaS
200 customers × $49/mo = $9,800
80 customers × $149/mo = $11,920
15 customers × $499/mo = $7,485
Total MRR: $29,205
ARR: $350,460
Scale-Up SaaS
500 customers × $99/mo = $49,500
150 customers × $299/mo = $44,850
25 customers × $999/mo = $24,975
Total MRR: $119,325
ARR: $1.43M
The 5 Types of MRR You Should Track
Understanding MRR components helps you identify growth drivers and problem areas.
New MRR
Revenue from newly acquired customers this month
Expansion MRR
Additional revenue from upgrades and upsells
Reactivation MRR
Revenue from customers who returned after churning
Contraction MRR
Lost revenue from downgrades to lower plans
Churned MRR
Lost revenue from cancelled subscriptions
Net New MRR Formula
Net New MRR = New + Expansion + Reactivation - Contraction - Churned
SaaS MRR Benchmarks by Stage
Compare your metrics to industry standards and understand where you stand.
Early Stage Growth
Month-over-month MRR growth for pre-seed to seed stage
Healthy Churn Rate
Monthly MRR churn for SMB-focused SaaS products
Best-in-Class NRR
Net Revenue Retention from expansion exceeding churn
Typical ARR Multiple
Valuation multiple for SaaS with 20-40% annual growth
How to Calculate MRR
Add Your Tiers
Enter each pricing tier with its monthly price (convert annual plans to monthly).
Enter Customer Counts
Add the number of paying customers on each pricing tier.
Calculate Instantly
See your total MRR, ARR, and revenue breakdown automatically.
Track Growth
Use regularly to monitor MRR growth and plan for scale.
Perfect for Every SaaS Builder
Whether you're a solo founder or leading a SaaS team, this calculator helps you understand your recurring revenue.
Indie Hackers
Track your MicroSaaS revenue growth and plan your path to ramen profitability and beyond.
- Simple multi-tier calculations
- Track monthly progress
- Plan for full-time transition
Startup Founders
Calculate your MRR for investor pitches, board meetings, and strategic planning.
- Investor-ready metrics
- ARR for valuations
- Growth rate analysis
SaaS Teams
Quick revenue snapshots for planning meetings, forecasting, and team alignment.
- Revenue scenario modeling
- Pricing tier analysis
- Team revenue tracking
Why MRR is the Most Important SaaS Metric
Predictable Revenue Powers Growth
Unlike one-time sales, MRR gives you a reliable foundation to build on. When you know how much revenue is coming in each month, you can make confident decisions about hiring, marketing spend, and product development. This predictability is why subscription businesses often command higher valuations than traditional businesses.
MRR Tells the True Story
Total revenue can be misleading if it includes one-time fees or annual payments that inflate a single month. MRR normalizes everything to a monthly basis, giving you an accurate picture of your sustainable recurring revenue. This is why investors focus on MRR trends rather than individual revenue spikes.
The Foundation for All SaaS Metrics
Nearly every important SaaS metric is derived from or related to MRR: ARR (Annual Recurring Revenue), LTV (Lifetime Value), CAC payback period, Net Revenue Retention, and more. Without accurate MRR tracking, you cannot properly calculate any of these crucial business metrics.
Your Valuation Depends on It
SaaS companies are typically valued as a multiple of ARR (which is just MRR × 12). A company with $100K MRR might be valued at $6M-$12M depending on growth rate and retention. Understanding and growing your MRR directly increases your company's value, making it essential for founders who want to raise funding or eventually sell their business.
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Frequently Asked Questions
What is MRR (Monthly Recurring Revenue)?
MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business can expect to receive every month. It is calculated by multiplying your total number of paying customers by the average revenue per user (ARPU). MRR is the most important metric for SaaS businesses because it shows the health and predictability of your revenue.
What is a good MRR growth rate?
For early-stage SaaS companies, aim for 10-20% month-over-month MRR growth. As you scale past $1M ARR, 5-10% monthly growth is considered strong. The key is consistent, sustainable growth rather than explosive but unsustainable spikes. Companies growing at 20%+ monthly can reach $100M ARR in 5 years.
How do I calculate MRR with annual plans?
Divide the annual contract value by 12 to get the monthly equivalent. For example, a customer paying $1,200/year contributes $100 to your MRR. This normalization helps you compare growth across different billing frequencies and gives you an accurate picture of your monthly revenue.
What's the difference between MRR and revenue?
MRR only includes recurring subscription revenue, while total revenue includes one-time fees, professional services, setup fees, and other non-recurring income. MRR gives a clearer picture of your subscription business health and predictability. Investors focus on MRR because it represents sustainable, predictable income.
How is MRR used in SaaS valuations?
Investors typically value SaaS companies at a multiple of ARR (Annual Recurring Revenue = MRR × 12). Common multiples range from 5-10x ARR for established companies with 20-40% growth, though high-growth startups (100%+ growth) can command 15-30x ARR multiples. Your MRR directly impacts your company valuation.
What are the different types of MRR?
There are five types of MRR: New MRR (from new customers), Expansion MRR (upsells and upgrades), Reactivation MRR (returning customers), Contraction MRR (downgrades), and Churned MRR (cancellations). Net New MRR = New + Expansion + Reactivation - Contraction - Churned. Tracking each type helps you understand growth drivers.
What is a good MRR churn rate?
For SaaS businesses, aim for monthly MRR churn below 2-3% for SMB customers and below 1% for enterprise customers. Annual churn above 10% is concerning. Best-in-class SaaS companies achieve negative net revenue churn, meaning expansion revenue exceeds churned revenue.
How do I reduce MRR churn?
Reduce churn by improving onboarding, providing excellent customer success, adding more value over time, implementing usage-based triggers to identify at-risk customers, offering annual plans with discounts, and regularly collecting and acting on feedback. Focus on your best customers and understand why churned customers left.
What is Net Revenue Retention (NRR)?
Net Revenue Retention measures how much revenue you retain and expand from existing customers over time, excluding new customers. NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100. World-class SaaS companies have NRR above 120%, meaning they grow revenue from existing customers even without new sales.
How do I forecast future MRR?
Forecast MRR by analyzing your historical growth rate, pipeline of potential new customers, expected expansion revenue, and typical churn rate. A simple formula: Next Month MRR = Current MRR × (1 + Growth Rate - Churn Rate). For more accuracy, build cohort-based models that account for seasonality and customer lifetime patterns.