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Calculate monthly and annual recurring revenue from customers and ARPU.

MRR (Monthly Recurring Revenue)

About this tool

MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) are the standard top-line health metrics for subscription and SaaS businesses — the numbers that show up first in investor updates, board decks, and internal dashboards because they compress an entire subscription base into one comparable figure. This MRR calculator uses the simplest possible version of the formula: MRR = paying customers × average revenue per user (ARPU) per month, and ARR is just MRR × 12.

That simplicity is also its limit: this calculation assumes a single flat ARPU applied evenly across every customer. Real businesses usually blend multiple pricing tiers, optional add-ons, and a steady stream of mid-cycle upgrades and downgrades, none of which this simplified model captures — treat the result as a quick, directional estimate rather than a ledger-accurate figure. It pairs naturally with the churn rate calculator elsewhere on this site, since churn directly erodes MRR over time: even a healthy new-customer pace can be offset, or overwhelmed, by how fast existing customers leave.

Frequently asked questions

Does MRR include one-time payments or setup fees?

No — by definition, MRR should only include predictable, recurring subscription revenue, since the whole point of the metric is to track the recurring base of the business. One-time charges like setup fees, professional services, or a single hardware purchase are typically excluded (or reported separately) because they don't recur and would distort MRR into looking artificially higher or more volatile than the underlying subscription business actually is.