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MRR Calculator
Calculate your Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) by pricing plan. Add as many plans as you need.
Enter pricing and customer counts above to calculate your MRR
SaaS MRR Milestones
What is MRR?
Monthly Recurring Revenue (MRR) is the normalized monthly revenue from all active subscriptions. It is the primary metric for measuring SaaS business health because it shows predictable, recurring revenue - not one-time spikes from new customers or annual payments.
For annual subscriptions, recognize MRR monthly: a $1,200/year contract = $100 MRR, not $1,200 in the month it was signed. This keeps your MRR comparable month-over-month and prevents it from spiking in renewal months.
MRR Formula
MRR = Σ (Monthly Price × Customers) per plan
ARR = MRR × 12
Counts as MRR
Active subscriptions at monthly price
Annual contracts recognized monthly (÷12)
Seat expansions on existing accounts
Plan upgrades from existing customers
Does NOT count as MRR
One-time setup or onboarding fees
Professional services revenue
Free trial users
Paused or suspended subscriptions
Frequently Asked Questions
What is the difference between MRR and ARR?
MRR (Monthly Recurring Revenue) is the normalized monthly subscription revenue. ARR = MRR × 12. Early-stage companies track MRR because it shows momentum month-over-month. Later-stage companies often report ARR because enterprise contracts are annual. They represent the same business - just viewed at different time horizons.
How do I calculate MRR from annual plans?
Divide the annual contract value by 12. A $1,200/year plan = $100 MRR. Never count the full annual payment in the month it was signed - that creates artificial spikes and makes month-over-month comparisons misleading.
What are the components of MRR growth?
Net New MRR = New MRR (new customers) + Expansion MRR (upgrades, seat additions) − Churned MRR (cancellations) − Contraction MRR (downgrades). Tracking these separately tells you where growth is coming from and where it's being lost.
What is Net Revenue Retention (NRR) and how does it relate to MRR?
NRR measures how much revenue your existing customer base generates over time relative to the previous period. NRR above 100% means existing customers pay you more over time - expansion MRR exceeds churned + contraction MRR. Companies with NRR above 120% can grow even without acquiring new customers.
What MRR do I need to raise a Series A?
$1M ARR ($83K MRR) is a common informal benchmark, but many Series A rounds happen between $500K–$2M ARR. What matters as much as the number: growth rate (investors want 2–3x year-over-year), churn (below 2% monthly), and unit economics (LTV:CAC above 3:1).