MRR Calculator
Monthly and annual recurring revenue from your plans, prices and customer counts (annual plans count as a twelfth a month), plus net new MRR, ARPU and MRR growth.
Result…
How it's calculated
Plan MRR = monthly price × customers (annual plans: yearly price ÷ 12 × customers) MRR = sum of plan MRR; ARR = MRR × 12 ARPU = MRR ÷ paying customers Net new MRR = new + expansion − contraction − churned Growth = net new MRR ÷ (MRR − net new MRR) × 100
Monthly recurring revenue (MRR) is the subscription revenue you can expect every month at today's customer count. An annual plan paid up front counts as one twelfth of its price each month, not as a lump in the month it was paid. Annual recurring revenue (ARR) is simply MRR × 12. The movement in MRR splits into new business, expansion from upgrades, contraction from downgrades and churn from cancellations; the sum is net new MRR. Growth is measured against the MRR at the start of the month, worked back here as today's MRR minus net new MRR. Definitions differ slightly between companies and billing tools, for example on trials and discounts, so stick with one.
Your numbers, step by step
About the MRR calculator
This MRR calculator adds up monthly recurring revenue from your price plans and the number of paying customers on each, then gives annual recurring revenue (ARR = MRR × 12) and the average revenue per paying customer (ARPU). Annual plans paid up front count as one twelfth of their price each month, so a big renewal month does not inflate the figure. Enter the month's new, expansion, contraction and churned MRR to see net new MRR and growth against the MRR you started the month with. Founders, finance leads and investors use these figures for board reports and planning. Paste your plans one per line, with a name, price, customer count and billing period, and every plan's contribution is shown in the working.
How to use it
- In “Plans: name, price, customers, billing”, write one plan per line, such as “Pro 49 120 monthly” or “Team 490 60 annual”.
- Enter the “New MRR this month” from customers who started paying.
- Enter “Expansion MRR” from upgrades and “Contraction MRR” from downgrades.
- Enter “Churned MRR” from cancellations to get net new MRR and MRR growth.
Worked example
Starter at 19 a month has 240 customers (4,560), Pro at 49 a month has 120 (5,880) and Team at 490 a year has 60 (490 ÷ 12 × 60 = 2,450). MRR = 4,560 + 5,880 + 2,450 = 12,890 and ARR = 154,680. Across 420 paying customers, ARPU is 30.69 a month. With 1,200 new, 400 expansion, 150 contraction and 500 churned MRR, net new MRR is 950, so the month started at 11,940 and grew by 7.96%.
Updated
Questions people ask
How do you calculate MRR?
Multiply each plan's monthly price by its number of paying customers and add the plans together. For an annual plan, divide the yearly price by 12 first.
What is the formula for net new MRR?
Net new MRR = new MRR + expansion MRR − contraction MRR − churned MRR. It is the change in MRR from the start of the month to the end.
Is ARR just MRR times 12?
Yes, for recurring subscription revenue ARR is MRR × 12. It describes the current run rate, not a forecast of the next 12 months.
What should I leave out of MRR?
One-off set-up fees, consulting, hardware and usage you can't count on each month. Count discounted plans at the price customers actually pay, not the list price.
How does churn affect MRR over time?
Churned MRR is subtracted every month, so even steady new sales can leave MRR flat. Measure your rate with the churn rate calculator. For investor or tax reporting, confirm the definitions with your accountant.