MRR & ARR Calculator
Calculate Monthly Recurring Revenue and Annual Recurring Revenue from your subscription customer base.
Results are for general guidance only — not professional advice. Learn more.
How to use this tool
Enter your subscription plans with customer counts and monthly prices to calculate total MRR, ARR, and ARPU with a per-plan breakdown.
- Give each plan a name (e.g. Basic, Pro, Enterprise).
- Enter the number of paying customers on each plan.
- Enter the monthly price for each plan.
- Click Add plan to model up to 4 plans in total.
- Read off total MRR, ARR, and ARPU from the results panel, and review the per-plan breakdown table below.
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Frequently asked questions
What is MRR?
MRR (Monthly Recurring Revenue) is the total predictable revenue your subscription business generates each month from all active paying customers. It is calculated by summing the product of customers and monthly price across all subscription plans. MRR excludes one-off payments and is the core metric for measuring the health and growth of a subscription business.
How is ARR calculated from MRR?
ARR (Annual Recurring Revenue) is calculated by multiplying MRR by 12. This assumes a consistent level of monthly recurring revenue over a 12-month period. For example, if MRR is £50,000, then ARR is £600,000. ARR is a useful metric for annual planning, investor reporting, and company valuation.
What is a good MRR growth rate?
Early-stage SaaS companies often target 10–20% month-on-month MRR growth, while more mature businesses may aim for 5–10% per month. The 'Triple Triple Double Double Double' (T2D3) framework — tripling ARR for two consecutive years then doubling it three times — is a benchmark often cited for high-growth SaaS companies.
How do I track MRR changes?
MRR changes are typically broken down into components: New MRR (from new customers), Expansion MRR (from upgrades), Contraction MRR (from downgrades), and Churned MRR (from cancellations). Net New MRR = New + Expansion − Contraction − Churned. Tracking these components separately gives you insight into which parts of your business are driving growth or decline.