MRR Calculator
Calculate Monthly Recurring Revenue (MRR) and break it down by plan or new/expansion/churned components.
How to use this tool
- Enter active paying customers, average revenue per user (arpu), new mrr this month, expansion mrr and churned mrr in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your total mrr and the full breakdown beneath it.
MRR is the lifeblood metric for subscription businesses. It normalises revenue to a monthly cadence so you can track growth, churn, and expansion in a single number.
Formula
MRR = Active Customers × ARPU
Net New MRR = New MRR + Expansion MRR − Churned MRR
ARR = MRR × 12
How it works
This calculator derives total MRR by multiplying the number of active paying customers by the average revenue per user, then computes the net MRR movement for the period by adding new and expansion MRR and subtracting churned MRR. ARR is the simple annualisation of MRR.
The model assumes all customers pay monthly at a uniform ARPU; businesses with mixed billing cycles or large contract variance may find their actual ARR differs from MRR × 12. Net new MRR is a snapshot of growth momentum for the month, not a cumulative figure.
Worked example
Worked example
- Active customers = 200; ARPU = $49.
- MRR = 200 × $49 = $9,800.
- Net new MRR = $2,000 (new) + $500 (expansion) − $300 (churned) = $2,200.
- ARR = $9,800 × 12 = $117,600.
MRR = $9,800; net new MRR = $2,200; ARR = $117,600.
Key terms
- MRR (Monthly Recurring Revenue)
- The normalised, predictable revenue a subscription business earns each month from all active customers.
- ARPU (Average Revenue Per User)
- Total MRR divided by the number of active paying customers; a measure of average monetisation per seat.
- Expansion MRR
- Additional revenue from existing customers through upgrades, add-ons, or seat increases during the period.
- Churned MRR
- Revenue lost when customers cancel or downgrade their subscriptions within the period.
- ARR (Annual Recurring Revenue)
- MRR multiplied by 12; a normalised view of annual subscription revenue used for valuation and forecasting.
Frequently asked questions
- What counts as MRR?
- Only normalised, recurring subscription revenue counts. Annual plan revenue should be divided by 12 to get the monthly portion. One-time fees, setup fees, and usage overage charges are typically excluded.
- How do I grow MRR?
- MRR grows through four levers: new customers (new MRR), upsells (expansion MRR), reactivations (reactivation MRR), and preventing cancellations (reducing churned MRR). Net new MRR = new + expansion - churned.