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MRR calculator.

Work out monthly recurring revenue from your plans, with annual plans spread across the year, or track this month's net new MRR from every movement.

Free · Runs in your browser · Formulas shown

Your plans

Annual and quarterly plans count at their monthly share.

Calculate

Plan 1

$
Billed

Plan 2

$
Billed

Plan 3

$
Billed
Monthly recurring revenue

$5,932

That is $71,180 ARR.

Plan 1
$3,480
Plan 2$290 / 12
$967
Plan 3
$1,485
Total MRR
$5,932
ARR
$71,180
The math

How MRR is calculated.

MRR normalizes every subscription to one month. The examples use your numbers from the calculator above.
MRR from your plans

MRR = sum of (price ÷ months in billing period × subscribers)

$29 × 120 + ($290 ÷ 12) × 40 + $99 × 15 = $5,932

A yearly plan counts at a twelfth of its price each month.

Net new MRR

Net new MRR = new + expansion + reactivation − contraction − churned

$1,500 + $600 + $100 − $200 − $400 = $1,600
MRR growth rate

MRR growth = net new MRR ÷ starting MRR

$1,600 ÷ $10,000 = 16%
Ending MRR and ARR

Ending MRR = starting MRR + net new MRR; ARR = ending MRR × 12

($10,000 + $1,600) × 12 = $139,200

Ending MRR: $11,600.

What counts

What to include in MRR.

Investors and acquirers will recompute MRR from your billing data, so count it the way they will.
What counts toward MRR
RevenueIn MRR?How
Monthly subscriptionsYesAt the price paid
Annual and quarterly plansYesPrice / 12 or / 3
Discounted subscriptionsYesAt the discounted price
Usage-based chargesSometimesOnly if predictable; say so
Setup and one-time feesNoReport separately
Free trialsNoCount from the first payment
Sales tax and VATNoNot your revenue
FAQ

MRR questions.

How do you calculate MRR?

Add up the monthly value of every active subscription. A $29 monthly plan counts $29, a $290 yearly plan counts $290 / 12 = $24.17, and a quarterly plan counts its price / 3. Equivalently, MRR is active customers × average revenue per account.

How do annual plans count toward MRR?

At one twelfth of the annual price each month, even though the customer paid up front. Counting the whole payment in the month it arrived makes MRR spike and fall and hides the real trend.

Should one-time fees, discounts or usage be included in MRR?

Leave out one-time setup fees, services, taxes and refunds. Count discounted subscriptions at what the customer actually pays. Usage-based revenue is debated: include it only if it is predictable, and say so when you report the number.

What is net new MRR?

New plus expansion plus reactivation MRR, minus contraction and churned MRR. In the example above that is $1,500 + $600 + $100 − $200 − $400 = $1,600.

What are expansion and contraction MRR?

Expansion MRR is extra revenue from existing customers who upgrade or add seats. Contraction MRR is revenue lost when customers downgrade without cancelling.

What is a good MRR growth rate?

It depends heavily on stage. A young product growing from a small base can post double-digit monthly growth; the same absolute gains are a smaller percentage as MRR grows. Compare yourself with companies at your size, not with headline numbers.

What is the difference between MRR and ARR?

ARR is MRR × 12: the same recurring revenue, expressed per year. Monthly-plan businesses tend to report MRR; businesses with annual contracts report ARR.

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