Monthly Recurring Revenue Calculator
Calculate your Monthly Recurring Revenue (MRR) by multiplying total subscribers by the average monthly price paid. Used by SaaS founders and subscription businesses to track growth and forecast cash flow.
About this calculator
Monthly Recurring Revenue (MRR) is the predictable, normalized monthly revenue generated from all active subscriptions. The formula is: MRR = Total Subscribers × Average Monthly Price. For example, 500 subscribers each paying an average of $29/month produces an MRR of $14,500. MRR is the single most important top-line metric for subscription businesses because it strips out one-time payments and gives a stable view of revenue momentum. Tracking MRR over time reveals whether a business is growing, contracting, or stagnating. It also serves as the foundation for calculating Annual Recurring Revenue (ARR = MRR × 12), customer lifetime value, and churn impact.
How to use
Suppose your SaaS product has 1,200 active subscribers across multiple pricing tiers. After averaging the plan prices across your subscriber base, you arrive at an average monthly price of $42. Enter subscribers = 1,200 and avgPrice = $42. The calculator computes: MRR = 1,200 × $42 = $50,400. Your business generates $50,400 in monthly recurring revenue. Multiply by 12 to get your ARR of $604,800. Track this figure monthly to measure growth rate and assess the impact of churn or new subscriber additions.
Frequently asked questions
How do I calculate MRR when subscribers are on different pricing plans?
When you have multiple tiers, calculate MRR by summing the revenue from each plan separately — multiply the number of subscribers on each plan by that plan's monthly price, then add the results together. Alternatively, calculate a weighted average monthly price across all subscribers and multiply by total subscriber count, which is exactly what this calculator supports. The weighted average approach is faster but the plan-by-plan method is more precise and useful for understanding which tier drives the most revenue.
What is the difference between MRR and ARR for subscription businesses?
MRR (Monthly Recurring Revenue) measures the normalized recurring revenue in a single month, while ARR (Annual Recurring Revenue) represents the annualized version, calculated as MRR × 12. MRR is more useful for tracking short-term growth and the impact of month-to-month churn and expansion. ARR is the metric most often cited in fundraising, valuations, and enterprise SaaS contexts where annual contracts are common. Both metrics exclude one-time charges, setup fees, and non-recurring revenue to give a clean view of the subscription revenue base.
Why is MRR important for forecasting and investor reporting?
MRR is a leading indicator of business health because it reflects committed future revenue rather than cash already received. Investors use MRR growth rate, churn rate, and expansion MRR to assess the sustainability and scalability of a subscription business. A consistent month-over-month MRR growth rate is a strong signal of product-market fit. For internal forecasting, MRR allows finance teams to project cash flow, plan hiring, and set realistic revenue targets without relying on unpredictable one-time sales.