MRR & ARR Calculator
Use this MRR ARR calculator to size subscription revenue: enter active customers and average monthly price to get MRR and annualised ARR.
What it does
The MRR & ARR Calculator turns a subscription customer base into its two headline recurring-revenue figures: monthly recurring revenue (MRR) and annual recurring revenue (ARR). It is the fastest way to size a SaaS or membership business.
Data sources & parameters
This calculator uses standard financial formulas and runs entirely in your browser. It needs no external rate data — your result is computed only from the values you enter above.
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
MRR = customers × average monthly revenue per customer; ARR = MRR × 12
How it works
It multiplies the number of active customers by the average monthly revenue each one pays to get MRR, then multiplies MRR by twelve to get ARR. Both figures assume the current customer base and pricing hold steady across the year.
Where it is used
- Sizing the recurring revenue of a SaaS or subscription business
- Turning a monthly run-rate into an annual figure for planning
- Reporting a simple, comparable revenue metric to investors
Worked example
A business has 200 active customers paying $50.00 a month on average. That is … in monthly recurring revenue, which annualises to … of annual recurring revenue.
What the MRR & ARR calculator does
The MRR and ARR calculator turns a subscription customer base into monthly recurring revenue and annual recurring revenue, the two figures that define a recurring-revenue business. They matter to anyone running a SaaS product, a membership, a content subscription, or any service billed on a repeating plan.
You provide the number of active customers and the average monthly amount each one pays. The calculator returns your MRR, its annualised equivalent ARR, and a chart placing the two side by side. The maths is pure arithmetic, so it works the same in dollars, euros, pounds, or any other currency.
How MRR and ARR work
A subscription company starts each month with customers who are already committed to paying. MRR measures that base: the total recurring revenue the business can expect in a given month if nothing changes.
MRR depends on how many customers you have and how much each pays on average, blended across every plan and tier. Grow either and MRR rises; lose customers or discount too hard and it falls.
ARR stretches the monthly run-rate over a year. It is not a record of what you earned in the past twelve months but the recurring revenue that would result if today's customer base and pricing stayed the same for a full year, which is why ARR is quoted as MRR multiplied by twelve, not summed from historical invoices.
The formula
MRR = customers × average monthly revenue per customer
ARR = MRR × 12
The twelve is a calendar constant, not a growth or churn assumption. To model growth or the effect of customers leaving, you would add those separately; this calculator gives the snapshot that deeper analysis builds on.
The two inputs
- Active customers is the count of paying subscribers on a recurring plan right now. Exclude free trials, churned accounts, and anyone not currently billed.
- Average monthly revenue per customer is the typical monthly amount a customer pays, blended across all your plans. With a fifty plan and a hundred plan split evenly, the blended figure is around seventy-five. Exclude one-off fees so the number reflects only repeating revenue.
Every recurring-revenue metric rests on these two figures, so getting them right matters more than any later calculation.
Why these metrics matter
Founders use MRR and ARR to track momentum month to month, investors use ARR to compare companies of different sizes, and operators use MRR to set targets for sales and retention teams. Because recurring revenue is predictable, a business can plan hiring, marketing spend, and cash flow against it with more confidence than a company that relies on one-off deals.
Once you know your MRR, the next questions are how fast it is growing, how much you lose to churn each month, and how much it costs to acquire the customers behind it. ARR gives the scale that makes those ratios meaningful.
Common uses
The calculator sizes the recurring revenue of a SaaS or subscription business for a board update or fundraising deck, converts a monthly run-rate into an annual figure for budgeting, and gives a metric you can benchmark against peers, since ARR is quoted the same way across the industry.
A worked example
A business with 200 active customers paying an average of 50 a month has 10,000 in monthly recurring revenue. Multiplied by twelve, that is 120,000 of annual recurring revenue. From there the company can set a growth target, estimate how many new customers it needs to reach the next ARR milestone, and measure how much churn would erode the base if retention slipped.
About This MRR ARR Calculator
Use this MRR ARR calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Frequently asked questions
How does the MRR and ARR calculator work?
What is the difference between MRR and ARR?
Why multiply MRR by twelve instead of adding up real months?
Should I include one-off fees in MRR?
What is average revenue per customer?
Is my data kept private?
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