MRR calculator
Calculate monthly recurring revenue and ARR from active customers and average revenue per customer.
What this calculator covers
Use this MRR calculator to estimate the current recurring-revenue run rate from active customers and average revenue per customer.
It also shows the matching ARR figure so the monthly operating cadence and annual reporting view stay tied together.
Frequently asked questions
- What counts as a customer in an MRR calculation?
- Only active paying customers with a current subscription should be counted. Trials, churned accounts, and one-time purchasers are typically excluded because they do not contribute recurring monthly revenue.
- How does ARPU relate to different pricing tiers?
- Average revenue per customer (ARPU) blends all plans and seat counts into a single per-customer average. If your customer mix changes — for example, more customers upgrade to a higher tier — ARPU will rise even if the customer count stays flat.
- Why is ARR calculated as MRR times 12 rather than actual annual bookings?
- This calculator uses the run-rate method, which projects the current monthly revenue forward as if it were stable for twelve months. Actual annual recurring revenue from bookings can differ if the customer base grows, contracts, or churns during the year.
- What is the difference between MRR and revenue on an income statement?
- MRR is a forward-looking operational metric based on contracted recurring amounts, while recognized revenue on an income statement follows accounting rules about when revenue is earned. For annual subscriptions, accounting rules may require recognizing revenue evenly over the contract period rather than all at once.
Tool
Run the calculation
Result
RESULT · MRR
â„–175
Primary result
$5,940.00
120 customers at $49.50 in ARPU produces $5,940.00 in MRR and $71,280.00 in ARR.
- Customers
- 120
- ARPU
- $49.50
- MRR
- $5,940.00
- ARR
- $71,280.00
Step-by-step solution
- 1.Multiply customer count by average revenue per customer to get MRR: 120 × $49.50 = $5,940.00.
- 2.Multiply MRR by 12 to annualize the subscription run rate.
- 3.Read ARR as $71,280.00 for a simple monthly-to-annual recurring-revenue bridge.
Walkthrough
Visual walkthrough
The basic SaaS MRR model assumes the active customer base and ARPU are enough to estimate the current recurring-revenue run rate.
01
Count active customers
120
MRR starts with the number of customers currently generating recurring subscription revenue.
02
Apply average revenue per customer
120 × $49.50 = $5,940.00
ARPU compresses mixed plans and seats into one average monthly revenue figure per customer.
03
Annualize the monthly run rate
ARR is simply the current MRR run rate multiplied across 12 months under the stable-run-rate assumption.
$5,940.00 MRR