MRR Calculator
(Monthly Recurring Revenue Tool)
Enter paying subscribers and the average monthly price to get MRR and ARR. Add this month's changes to see where MRR ends.
Step 1 — Current Subscriber Base
Blended average across all your plan tiers
Calculated Results
Enter your subscriber count and average revenue per account to calculate MRR.
This MRR calculator works out monthly recurring revenue, the amount a subscription business can expect to bill every month from its current customers. Enter paying subscribers and the average monthly price per account to get MRR and ARR. Add the month's new, expansion, contraction and churned MRR and it shows how much MRR changed and where it ends.
How to Calculate MRR
MRR is the number of paying subscribers multiplied by the average revenue per account per month.
250 subscribers paying an average of $49 a month gives 250 × 49 = $12,250. Annual recurring revenue is twelve times that: $147,000.
With several plans, the average is total monthly subscription revenue divided by paying accounts. You get the same MRR by adding up plan by plan:
| Plan | Customers | Monthly price | MRR |
|---|---|---|---|
| Basic | 150 | $29 | $4,350 |
| Pro | 80 | $59 | $4,720 |
| Business | 20 | $159 | $3,180 |
| Total | 250 | $49 average | $12,250 |
What Counts as MRR
- Counts: monthly subscription fees, and annual or quarterly plans divided by the number of months they cover.
- Counts, after discount: a customer on a 20% discount adds the discounted amount, not the list price.
- Does not count: setup fees, one-off services, hardware, and usage charges that do not repeat.
- Does not count: free plans and trials, until the customer starts paying.
Net New MRR: How MRR Changes in a Month
MRR moves for four reasons. Splitting the change into them shows whether growth comes from new customers or from the ones you already have.
| Movement | What it is | Example |
|---|---|---|
| New MRR | From customers who started paying this month | +$2,000 |
| Expansion MRR | Upgrades and add-ons from existing customers | +$800 |
| Contraction MRR | Downgrades from existing customers | −$300 |
| Churned MRR | Lost from customers who cancelled | −$500 |
| Net new MRR | +$2,000 |
Starting from $12,250, the month ends at $14,250. The same four figures feed two other measures: the Net Revenue Retention Calculator looks at existing customers only, and the Churn Rate Calculator turns the churned amount into a rate.
MRR, ARR and Revenue
MRR is a snapshot of the subscription base. It is not the revenue line in the accounts and it is not cash. A customer who pays $600 for a year in January adds $50 of MRR every month, $600 of cash in January, and revenue that is recognised month by month under accounting rules. Use MRR to follow the size and direction of the subscription business, and the accounts for what was earned and collected.
How to Use the MRR Calculator
- Enter paying subscribers: Type the number of customers who currently pay for a subscription. Leave out free and trial accounts.
- Enter average revenue per account: Type the average amount one account pays per month across all your plans.
- Read MRR and ARR: The calculator multiplies the two for MRR and multiplies MRR by 12 for ARR.
- Add this month's changes: Optional. Open the movement section and enter new, expansion, contraction and churned MRR to see net new MRR and ending MRR.
Frequently Asked Questions
How do I calculate MRR?
Multiply the number of paying subscribers by the average amount each pays per month. 250 subscribers paying an average of $49 a month is 250 × 49 = $12,250 of MRR. Adding up each customer's monthly price gives the same figure.
How do I count annual plans in MRR?
Divide the annual price by 12. A customer who pays $600 once a year adds $50 to MRR in each of the twelve months, not $600 in the month they paid.
What is not included in MRR?
One-off charges such as setup fees, consulting and hardware, and money from free or trial accounts. MRR counts only revenue that repeats every month under a subscription.
What is the difference between MRR and ARR?
ARR is MRR multiplied by 12. $12,250 of MRR is $147,000 of ARR. It describes the current monthly rate carried over a year and is not a forecast of what will be collected.
What is net new MRR?
The change in MRR over a month: new MRR plus expansion MRR, minus contraction MRR and churned MRR. With $2,000 new, $800 expansion, $300 contraction and $500 churned, net new MRR is $2,000.
Is MRR the same as revenue?
No. MRR is a measure of the subscription base at one moment. Accounting revenue follows recognition rules and includes one-off sales, and cash received depends on when customers are billed.
Formulas and worked examples checked in October 2026.