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MRR Calculator

Calculate Monthly Recurring Revenue from subscription tiers, user counts, and churn. Enter values for instant results with step-by-step formulas.

Reviewed by Daniel Agrici, Founder & Lead Developer

Reviewed by Daniel Agrici, Founder & Lead Developer

Formula

MRR = Sum of (Customers per Tier × Price per Tier) | ARR = MRR × 12 | ARPU = MRR / Total Customers

Monthly Recurring Revenue is the sum of all tier-level revenues. ARR annualizes this figure. ARPU shows the average revenue contribution per customer across all tiers.

Worked Examples

Example 1: Early-stage SaaS

Problem:A SaaS startup has 200 Starter customers at $29/mo and 30 Pro customers at $99/mo. Calculate MRR, ARR, and ARPU.

Solution:Starter MRR: 200 × $29 = $5,800\nPro MRR: 30 × $99 = $2,970\nTotal MRR: $5,800 + $2,970 = $8,770\nARR: $8,770 × 12 = $105,240\nARPU: $8,770 / 230 = $38.13

Result:MRR: $8,770 | ARR: $105,240 | ARPU: $38.13

Example 2: Enterprise SaaS with free tier

Problem:500 free users, 100 at $49/mo, 40 at $149/mo, 5 at $499/mo. Calculate MRR and ARPU (paying only).

Solution:Free: 500 × $0 = $0\nBasic: 100 × $49 = $4,900\nPro: 40 × $149 = $5,960\nEnterprise: 5 × $499 = $2,495\nTotal MRR: $13,355\nARPPU: $13,355 / 145 = $92.10

Result:MRR: $13,355 | ARR: $160,260 | ARPPU: $92.10

Frequently Asked Questions

What is MRR (Monthly Recurring Revenue)?

MRR is the predictable revenue a subscription business earns each month. It is calculated by multiplying the number of customers in each pricing tier by the monthly price of that tier, then summing across all tiers. MRR is the most important metric for SaaS companies because it reflects the health and growth trajectory of the business. Investors, boards, and operators track MRR to gauge momentum.

What is the difference between MRR and ARR?

ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. It represents the annualized value of your recurring revenue. ARR is typically used by enterprise SaaS companies and those with annual contracts, while MRR is more common for monthly-billed SaaS. Both are important — ARR is useful for fundraising and valuation benchmarks, while MRR is better for tracking month-over-month growth.

How do I increase MRR?

There are four levers: (1) New MRR — acquire more customers. (2) Expansion MRR — upsell existing customers to higher tiers or add-ons. (3) Reduce churn — keep customers longer through better product and support. (4) Pricing optimization — test higher prices or value-based pricing. The most efficient path is usually reducing churn first, then optimizing pricing, then focusing on expansion revenue.

References

Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy