MRR Calculator

What is MRR?

Monthly recurring revenue (MRR) is the predictable subscription revenue a business collects every month. It's the core health metric for any subscription business — investors, operators, and finance teams all watch it because, unlike total revenue, it strips out one-time noise and shows the recurring base the business can count on.

Worked example: 150 customers paying $80/mo on average. MRR = 150 × 80 = $12,000, or $144,000 ARR.

FAQ

MRR vs ARR — what's the difference?

MRR (monthly recurring revenue) is your predictable subscription revenue for a single month. ARR (annual recurring revenue) is simply MRR × 12 — the same revenue expressed on a yearly basis. SaaS companies with shorter sales cycles and monthly plans tend to talk in MRR; larger B2B companies with annual contracts tend to talk in ARR. They're the same underlying number, just different time scales.

What counts in MRR?

Only recurring subscription revenue — the predictable amount a customer pays each month for as long as they stay subscribed. One-time fees, setup fees, and other non-recurring charges don't count, even if they show up on the same invoice. Mixing them in inflates MRR with revenue that won't repeat next month, which defeats the point of tracking it.

Expansion MRR vs new MRR

New MRR comes from first-time customers signing up. Expansion MRR comes from existing customers upgrading, adding seats, or buying add-ons. Both add to your total MRR growth, but they come from different sources and usually need different strategies — new MRR is driven by acquisition, expansion MRR by product and account management. Tracking them separately shows you whether growth is coming from new logos or from getting more out of the customers you already have.