MRR Calculator
Calculate Monthly Recurring Revenue from subscription tiers, user counts, and churn. Enter values for instant results with step-by-step formulas.
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.
What formula does MRR Calculator use?
The formula used is described in the Formula section on this page. It is based on widely accepted standards in the relevant field. If you need a specific reference or citation, the References section provides links to authoritative sources.
Can I share or bookmark my calculation?
You can bookmark the calculator page in your browser. Many calculators also display a shareable result summary you can copy. The page URL stays the same so returning to it will bring you back to the same tool.
How do I get the most accurate result?
Enter values as precisely as possible using the correct units for each field. Check that you have selected the right unit (e.g. kilograms vs pounds, meters vs feet) before calculating. Rounding inputs early can reduce output precision.