FREE SAAS METRICS TOOL
MRR Calculator
Calculate monthly recurring revenue and your annual run rate.
INTERACTIVE CALCULATOR
Calculate your MRR
Estimate only. Excludes one-time charges, refunds, taxes, and foreign exchange adjustments. Currency selection changes formatting, not values.
THE BASICS
What is monthly recurring revenue?
Monthly recurring revenue, or MRR, is a normalized view of active subscription revenue for one month. Founders use it to monitor recurring scale, compare periods, and separate durable subscription movements from one-time sales.
This calculator is intended for a quick operating estimate. Enter the current monthly subscription revenue and the annual recurring contract value that should be spread across 12 months.
MRR and ARR formulas
MRR = monthly subscription revenue + (annual recurring revenue ÷ 12)ARR = MRR × 12Use the same inclusion rules each period. Consistency makes trend analysis more useful than adding revenue merely because it was collected during the month.
Worked MRR example
Suppose a SaaS business has $12,000 in monthly subscriptions and $24,000 of active annual contracts. The annual contracts contribute $2,000 per month, producing $14,000.00 MRR and $168,000.00 ARR.
| Result | Amount |
|---|---|
| Monthly subscriptions | $12,000 |
| Annual contracts ÷ 12 | $2,000 |
| MRR | $14,000 |
| ARR | $168,000 |
What to include and exclude
Include active, predictable subscription commitments for the measurement date. Normalize annual plans to a monthly equivalent and apply discounts consistently.
Exclude implementation and setup fees, consulting, hardware, taxes, refunds, and usage charges without a recurring commitment. Document how you handle credits, paused subscriptions, trials, and contracts that have been signed but are not live.
Understand the MRR bridge
Total MRR alone does not explain why recurring revenue changed. Track new MRR from first-time customers, expansion MRR from upgrades, contraction MRR from downgrades, and churned MRR from cancellations.
Ending MRR = beginning MRR + new MRR + expansion MRR − contraction MRR − churned MRRUse the Churn Calculator to examine retention, and the ARR Calculator for a fuller annual recurring-revenue bridge.
MRR is not recognized revenue
MRR is a management metric, not an accounting standard. It normalizes recurring commitments for operating analysis, while recognized revenue depends on when performance obligations are satisfied under the accounting framework that applies to the business.
Do not use this estimate as a substitute for financial statements, tax reporting, or advice from a qualified accountant. Usage-based pricing, foreign exchange, mid-period changes, credits, and complex contracts may need a more detailed model.
COMMON QUESTIONS
MRR questions
What is monthly recurring revenue (MRR)?
MRR is the normalized monthly value of active recurring subscription commitments. It gives a subscription business a consistent view when customers pay on different billing schedules.
How do you calculate MRR from annual subscriptions?
Divide the active annual recurring contract value by 12, then add that monthly equivalent to recurring revenue from monthly subscriptions.
Should one-time fees be included in MRR?
No. Exclude setup work, implementation, consulting, hardware, taxes, refunds, and other charges that are not recurring subscription commitments.
How do expansion, contraction, and churn affect MRR?
Expansion MRR increases when existing customers upgrade. Contraction MRR falls when they downgrade. Churned MRR is lost when subscriptions end. Track each movement separately to understand the change in total MRR.
Is MRR the same as recognized revenue?
No. MRR is an operating metric that normalizes recurring commitments. Recognized revenue follows the applicable accounting rules and timing, so it can differ from MRR.
Can I compare MRR across businesses?
Only with care. Companies may treat usage revenue, discounts, trials, credits, and contracted-but-not-live customers differently. Confirm the definition before comparing figures.
TRANSPARENCY NOTE
Methodology and review
The calculator normalizes entered annual recurring revenue over 12 months and adds it to monthly subscription revenue. The calculation module is covered by automated tests; inclusion choices remain user assumptions and MRR is not recognized revenue.