MRR & ARR Calculator

Work out MRR and ARR from your plans, or see how this month’s MRR moved.

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Enter the price each customer pays per billing period. Count only active paid subscriptions: leave out trials, one-off fees and usage you do not bill every month.

MRR at the start of the month

New MRR

Expansion MRR

Reactivation MRR

Contraction MRR

Churned MRR

Revenue from customers who cancelled this month.

Currency

How MRR moved this month

Added Lost

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<p><a href="https://askaiforit.com/free-tools/saas-calculators/mrr-arr">MRR &amp; ARR Calculator</a> by Ask AI For It</p>

The formula

MRR (monthly recurring revenue) = the sum of what every paying customer is billed per month for their subscription.

ARR (annual recurring revenue) = MRR × 12.

For an annual plan, divide the yearly price by 12. A customer who pays $790 once a year adds $65.83 to MRR every month, not $790 in the month they pay.

Worked example: MRR from plans

Plan	Price	Customers	MRR
Starter	$29 a month	120	$3,480
Pro	$79 a month	45	$3,555
Pro, yearly	$790 a year	30	$1,975
Total		195	$9,010

ARR is $9,010 × 12 = $108,120. Average revenue per account (ARPA) is $9,010 ÷ 195 = $46.21.

Worked example: how MRR moved

The second tab splits one month's change into its parts:

Start of the month: $20,000.
Add new MRR from new customers ($2,400), expansion from upgrades ($800) and reactivations of customers who had left ($200).
Subtract contraction from downgrades ($300) and churned MRR from cancellations ($900).
Ending MRR: $20,000 + $2,400 + $800 + $200 − $300 − $900 = $22,200.

Net new MRR is $2,200, which is 11% growth in a month.

How to read it

Watch net new MRR, not only the total. A business can grow while losing a large share of its base each month, and the breakdown shows that early. One common way to summarise it is the SaaS quick ratio: (new + expansion + reactivation) ÷ (contraction + churn). In the example that is $3,400 ÷ $1,200 ≈ 2.8. A ratio of 4 is often quoted as a target, but treat it as a rule of thumb, not a standard.

Common mistakes

Counting annual payments in one month. It inflates MRR in renewal months and then drops. Spread each payment over the months it covers.
Including trials or free plans. MRR counts paying subscriptions only.
Ignoring discounts. Use the price the customer actually pays after coupons.
Adding one-off fees. Setup fees, services and overage charges you do not bill every month are revenue, but not recurring revenue.
Mixing currencies. Convert everything to one currency at a fixed rate before you add it up.

Once you know your MRR, check how much of it you keep with the churn rate calculator, or see how many customers you need for the next milestone with the customers to MRR goal calculator.

Is ARR just MRR times 12?

For subscription businesses, yes: ARR is the current MRR expressed per year. It is a snapshot of the run rate, not a forecast of the next twelve months' revenue.

How do annual plans count toward MRR?

Divide the annual price by 12 and count that amount every month of the contract. That keeps MRR smooth and comparable from month to month.

Should trial users be included?

No. Count a customer from the first paid billing period. Trials, free plans and pending invoices are not recurring revenue yet.

How do I handle discounts and coupons?

Use the amount the customer is billed after the discount. When a temporary discount ends, the increase counts as expansion MRR.

What is the difference between MRR and revenue?

Revenue includes everything you earn: one-off fees, services and usage charges. MRR is only the predictable subscription part, which is why investors and founders track it separately.