Monthly Recurring Revenue (MRR) Calculator

Estimate subscription Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), and analyze the impact of monthly churn.

Input Details

Paying Active Customers

Average Revenue Per User (ARPU)

Monthly Churn Rate

Results

MRR Forecast Summary

Monthly Recurring Revenue (MRR)

$7,350

Your active base generates $7,350/mo (ARR: $88,200). At a 4% churn rate, you stand to lose $294 next month if no new users register, leaving a net MRR of $7,056.

Active Monthly Customers150

Average Revenue Per User (ARPU)$49

Annual Recurring Revenue (ARR)$88,200

Expected Churn Customers6.0

Expected Monthly Churn Revenue$294

The Formula

MRR & ARR Math:

MRR = Total Customers × Monthly ARPU
ARR = MRR × 12
Revenue Churn = MRR × (Churn Rate % ÷ 100)

Example Calculation

If your SaaS platform has 100 users paying an average of $50/month, with a 5% monthly churn rate:
MRR: 100 × $50 = $5,000 | ARR: $5,000 × 12 = $60,000 | Revenue Churn: $5,000 × 5% = $250/mo

How to Use This Calculator

Enter the total number of paying **Active Customers**.
Input the **Average Revenue Per User (ARPU)** per month.
Set your monthly **Customer Churn Rate** percentage.

When This Calculator is Useful

Use this tool when **forecasting SaaS business metrics**, building investor pitch decks, or tracking subscription project growth trends.

Disclaimer Note

All results are estimates based on standard business formulas and rates. Actual project costs, ROI, and rates may vary based on market conditions, specific requirements, and contract agreements.

Frequently Asked Questions

Monthly Recurring Revenue (MRR) is the predictable total revenue that a subscription-based business expects to receive from customers each month. It normalizes billing cycles (annual, quarterly, monthly) into a single monthly value.

The simplest way to calculate MRR is by multiplying the total number of active paying subscribers by the Average Revenue Per User (ARPU) per month. Formula: MRR = Paying Customers × ARPU.

MRR is the recurring revenue on a monthly basis, while ARR (Annual Recurring Revenue) is the recurring revenue projected over a full year. ARR is calculated by multiplying your current month's MRR by 12.

MRR changes monthly based on: New MRR (revenue from brand-new customers), Expansion MRR (revenue from upgrades/add-ons of existing customers), Reactivation MRR (revenue from returning customers), and Churn/Contraction MRR (lost revenue from cancellations or downgrades).