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Monthly Recurring Revenue Calculator

Enter active subscribers and average revenue per account to find your MRR and ARR.

How it is calculated

The tool multiplies two numbers: MRR = active subscribers × ARPA, where ARPA is the average revenue per account per month in dollars. The annual run rate is simply ARR = MRR × 12. Both inputs must be above zero. The calculation does not convert billing cycles for you: if some customers pay yearly, divide their yearly price by 12 before working out the average. It also does not subtract churn, discounts or refunds, and one-off fees, setup charges and usage overages should be left out of ARPA. ARR here is today's MRR extended over twelve months, not a forecast of growth or churn.

Worked example

A software product has 850 active paying subscribers, and the average account brings in $29.50 a month. MRR = 850 × 29.50 = $25,075.00. ARR = 25,075 × 12 = $300,900.00. If 50 more accounts join at the same ARPA, MRR rises by 50 × 29.50 = $1,475, to $26,550.

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Common mistakes

  • Entering an annual price as ARPA. The field is dollars per month, so a $360 yearly plan counts as $30, not $360, otherwise MRR is inflated twelvefold.
  • Counting trial users or free-plan users in active subscribers. Only accounts that actually pay recurring fees belong in the count.
  • Including one-time revenue such as setup fees or hardware in ARPA. That revenue does not recur, so MRR and the ARR derived from it come out too high.
  • Averaging in discounts and coupons incorrectly. ARPA should be the revenue actually billed per account, not the list price.
  • Treating ARR as a forecast. It is MRR times 12 at today's numbers and takes no account of cancellations or growth.

Sources

About this calculator

Monthly Recurring Revenue (MRR) is the headline growth metric for subscription businesses: it expresses all recurring subscription income as a single monthly figure, computed as active subscribers times monthly ARPA (average revenue per account). The calculator expects ARPA as a monthly amount, so convert annual or quarterly plans to their monthly equivalent first. Multiplying MRR by 12 gives Annual Run Rate (ARR), the number investors and boards use to talk about a SaaS company's size.

Because MRR strips out one-time fees and non-recurring revenue, it lets a company track predictable, compounding growth month over month, and it feeds directly into other core SaaS metrics like net revenue retention, CAC payback period, and the Rule of 40. This calculator turns your subscriber count and monthly ARPA into both figures at once.

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  • Editorial team

    ARR here is simply MRR times 12, a run rate and not contracted revenue, so a month with 1,200 subscribers at 45 average gives 54,000 a month and 648,000 a year only if nobody leaves. When plans differ, work ARPA as a weighted average of total revenue over total accounts instead of averaging the plan prices. How do you handle annual plans and discounts in your ARPA?

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