MRR Calculator
Calculate your Monthly Recurring Revenue, net MRR, growth rate, and ARR. Enter your subscription metrics below to get an instant breakdown.
Your Metrics
Revenue from new customers acquired this month
Additional revenue from upgrades and add-ons
Revenue lost from downgrades
Revenue lost from cancellations
MRR Breakdown
Key Metrics
What is MRR?
Monthly Recurring Revenue (MRR) is the total predictable revenue your business earns from all active subscriptions in a given month. It is the single most important metric for any SaaS or subscription-based business because it provides a normalized view of your revenue, regardless of whether customers pay monthly, quarterly, or annually.
MRR strips out one-time payments, setup fees, and variable charges to give you a clear picture of your recurring revenue engine. It allows founders, operators, and investors to track growth, forecast future revenue, and benchmark performance against industry standards.
How to Calculate MRR
There are two common methods for calculating MRR:
Method 1: Customer count method
MRR = Number of Customers x Average Revenue Per User (ARPU)
Best when you have a single plan or want a quick estimate. For example, 200 customers at $49/month = $9,800 MRR.
Method 2: Subscription-level sum
MRR = Sum of Monthly Revenue from All Active Subscriptions
More accurate when you have multiple pricing tiers. Add up the normalized monthly value of every active subscription. Annualized plans should be divided by 12.
Net MRR formula
Net New MRR = New MRR + Expansion MRR - Contraction MRR - Churned MRR
Net MRR tells you how much your recurring revenue changed in a month. A positive net MRR means you are growing. A negative net MRR means you are shrinking.
Types of MRR
Breaking MRR into its components helps you understand exactly where your revenue growth is coming from and where you are losing it.
New MRR
Revenue added from brand-new customers who subscribed for the first time this month. This is driven by your sales and marketing efforts.
Expansion MRR
Additional revenue from existing customers who upgraded their plan, added seats, or purchased add-ons. Expansion MRR is a sign of strong product-market fit.
Contraction MRR
Revenue lost when existing customers downgrade to a cheaper plan or remove seats. Contraction reduces your MRR without losing the customer entirely.
Churned MRR
Revenue lost when customers cancel their subscription entirely. Churned MRR has the largest negative impact on growth and is the hardest to recover.
Reactivation MRR
Revenue from previously churned customers who return and resubscribe. While not always tracked separately, reactivation MRR can be a meaningful growth lever for mature SaaS businesses with large churned customer bases.
What is a Good MRR Growth Rate?
MRR growth rate benchmarks vary significantly by company stage, market, and business model. Here are general guidelines:
The most important thing is not hitting a specific number but maintaining consistent, sustainable growth. A company growing at 5% per month consistently will double its revenue roughly every 14 months. Rapid but volatile growth is harder to sustain and plan around than steady, compounding growth.
Net Revenue Retention (NRR) above 100% is a strong signal. It means your existing customer base is generating more revenue over time, even before accounting for new sales. The best SaaS companies achieve NRR between 110% and 130%.
Frequently Asked Questions
What is MRR in SaaS?
MRR (Monthly Recurring Revenue) is the predictable revenue a SaaS business earns every month from active subscriptions. It normalizes different billing cycles (monthly, quarterly, annual) into a single monthly figure, making it the most important metric for tracking SaaS growth and financial health.
How do you calculate MRR?
The simplest way to calculate MRR is to multiply the total number of paying customers by the average revenue per user (ARPU). For example, 200 customers paying an average of $50 per month equals $10,000 MRR. For more granular tracking, calculate MRR by summing the monthly value of every active subscription.
What is Net MRR and how is it different from MRR?
Net MRR accounts for all changes to your recurring revenue in a given month. It is calculated as: Net MRR = New MRR + Expansion MRR - Contraction MRR - Churned MRR. While MRR is your total recurring revenue at a point in time, Net MRR tells you how much your revenue grew or shrank during a specific period.
What is a good MRR growth rate for SaaS?
A good MRR growth rate depends on your stage. Early-stage startups often see 15% to 20% month-over-month growth. Growth-stage companies typically target 5% to 10% monthly growth. Mature SaaS businesses with $10M+ ARR usually grow at 2% to 5% per month. Consistent positive net MRR growth is more important than hitting a specific percentage.
What is Net Revenue Retention (NRR) and why does it matter?
Net Revenue Retention (NRR) measures how much revenue you retain and expand from existing customers over a period, excluding new customers. An NRR above 100% means your existing customers are spending more over time through upgrades and expansion, which indicates strong product-market fit. Top SaaS companies achieve NRR of 110% to 130% or higher.
How do you convert MRR to ARR?
ARR (Annual Recurring Revenue) is calculated by multiplying your current MRR by 12. For example, if your MRR is $50,000, your ARR is $600,000. ARR is commonly used by investors and analysts to evaluate SaaS businesses, especially those with annual contracts. Note that ARR assumes your current MRR remains constant for 12 months.