MRR Calculator
Calculate your Monthly Recurring Revenue and track growth trends.
Formula
MRR = Number of Customers × ARPUWhat is MRR?
Monthly Recurring Revenue (MRR) is the predictable, recurring portion of your subscription revenue normalized to a monthly amount. It helps businesses abstract away varying billing cycles (like yearly or quarterly) into a clean monthly view. Tracking MRR accurately is essential before evaluating other core metrics, such as your Customer Lifetime Value (LTV).
How to calculate MRR
For straightforward pricing, simply multiply your total number of paying customers by your Average Revenue Per User (ARPU). For complex tiers, sum the monthly recurring value of every active subscription, making sure to divide annual contract values by 12.
Example calculation
Imagine your SaaS product has 200 paying customers and the average customer pays $40 per month. Your calculation would be: 200 customers × $40/month = $8,000 MRR.
Why MRR matters for SaaS
MRR is the lifeblood of a SaaS business. It provides a highly accurate snapshot of growth momentum, forecasting, and revenue stability. Investors value a consistent and increasing MRR because it demonstrates strong product-market fit and predictable future cash flows.
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