Calculate your Monthly Recurring Revenue, ARR, Churn Rate, and LTV instantly. Professional financial reports, no login required, 100% free.
An MRR (Monthly Recurring Revenue) calculator is an essential tool for SaaS and subscription-based businesses. It helps you track the predictable revenue your business generates every month. By inputting your customer count, subscription prices, and growth metrics, you get a clear picture of your financial health and future growth potential.
Our tool uses a comprehensive formula to calculate your net revenue. It takes your base revenue from existing customers, adds revenue from new acquisitions and upgrades (expansion), and subtracts losses from cancellations (churn) and downgrades (contraction). This gives you the "Net New MRR," which is the most accurate measure of your growth.
Tracking MRR allows you to make data-driven decisions. It provides a reliable forecast of future cash flow, helps identify which customer segments are most profitable, and highlights when churn is becoming a critical issue. With our free calculator, you can export these insights as professional reports to share with your team instantly.
Learn how to calculate, optimize, and grow your subscription revenue.
Monthly Recurring Revenue (MRR) is the predictable total revenue generated by your business from all active subscriptions in a given month. It is the lifeblood of any subscription-based business, providing a normalized measure of revenue that ignores one-off fees and focuses purely on recurring income.
The simplest way to calculate MRR is to multiply your total number of paying customers by the average revenue per user (ARPU). For example, if you have 100 customers paying $50 per month, your MRR is $5,000. For more complex pricing tiers, you sum the recurring revenue from each individual customer.
While MRR measures monthly revenue, Annual Recurring Revenue (ARR) measures the predictable revenue over a 12-month period. ARR is simply MRR multiplied by 12. ARR is often used by enterprise companies with annual contracts, whereas MRR is preferred by startups with monthly billing cycles.
Churn rate is the percentage of customers who cancel their subscription. To reduce churn, focus on improving customer onboarding, providing excellent customer support, actively seeking feedback, and continuously adding value to your product. A high churn rate can quickly offset any new MRR gains.
Expansion MRR is additional revenue from existing customers, usually through plan upgrades, add-ons, or increased usage. When your expansion MRR exceeds your churned MRR, you achieve 'negative churn,' which is the holy grail of SaaS growth.
MRR stands for Monthly Recurring Revenue. It is the predictable revenue a business expects to receive every month from its active subscriptions.
ARR (Annual Recurring Revenue) is simply your MRR multiplied by 12. It provides a yearly view of your recurring revenue, which is useful for long-term planning.
Churn measures the rate at which customers cancel their subscriptions. High churn means you have to acquire more new customers just to maintain your current revenue, making growth difficult and expensive.
Companies can increase MRR by acquiring new customers, upselling existing customers to higher tiers (expansion MRR), and reducing churn.
Net New MRR is the sum of New MRR and Expansion MRR, minus Churned MRR and Contraction MRR. It shows the true growth of your recurring revenue.
Expansion MRR is additional revenue from existing customers, usually through plan upgrades, add-ons, or increased usage.
ARPU (Average Revenue Per User) is calculated by dividing your total MRR by the total number of active customers.
A healthy LTV:CAC ratio is typically 3:1 or higher, meaning the lifetime value of a customer is at least three times the cost to acquire them.
Contraction MRR is the loss of revenue from existing customers who downgrade to a lower-priced plan or reduce their usage.
Yes, our MRR calculator is 100% free to use. You can calculate your metrics and export reports without any login or subscription required.