What Is MRR?
Monthly Recurring Revenue (MRR) is the predictable, normalized amount of revenue a subscription business expects to collect every month. It is one of the most important metrics for SaaS companies, membership sites, and any business with recurring billing, because it smooths out one-time charges and shows the true run-rate of the business.
How to Use This Calculator
Enter your total number of active paying customers and the average revenue you collect from each customer per month (often called ARPU, average revenue per user). The calculator multiplies the two to give your MRR and also projects your Annual Recurring Revenue (ARR) by multiplying MRR by 12.
The Formula Explained
The core formula is $$\text{MRR} = \text{Number of Customers} \times \text{Average Revenue Per Customer}$$. If customers pay on different plans or billing cycles, first normalize every subscription to a monthly amount (for example, divide an annual plan price by 12), then average those monthly values to get ARPU before plugging it into the formula.
Worked Example
Suppose you have 250 customers paying an average of $40 per month. Your MRR is $$250 \times \$40 = \textbf{\$10{,}000}$$. Your projected ARR is $$\$10{,}000 \times 12 = \textbf{\$120{,}000}$$.
FAQ
Does MRR include one-time fees? No. Setup fees, one-off charges, and non-recurring revenue should be excluded, since MRR only measures predictable recurring income.
How should annual plans be counted? Convert annual subscriptions to a monthly figure by dividing the annual price by 12 before adding them to your ARPU calculation.
What is the difference between MRR and ARR? ARR is simply MRR multiplied by 12 — the annualized view of your recurring revenue.
