Quickly estimate your Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) using SaaS-native formulas. Perfect for subscription founders, RevOps, and finance teams.
Formula overview: MRR = Average Revenue per Account × Number of Active Customers. ARR = MRR × 12.
Use simple SaaS inputs to estimate your recurring revenue. This works best when you have a relatively consistent subscription price or a clear average across plans.
Tip: For tiered pricing, you can also run the calculation by segment (e.g., SMB vs. enterprise) and then sum the resulting MRR values.
These questions focus on how SaaS and subscription businesses typically use MRR and ARR for forecasting, reporting, and decision-making.
Monthly Recurring Revenue (MRR) is the predictable subscription revenue you expect to earn every month from active customers. It excludes one-time setup fees, implementation projects, and usage-based overages. For most SaaS products with subscriptions, MRR is calculated as Average Revenue per Account (ARPA) multiplied by the number of active paying customers.
ARR (Annual Recurring Revenue) is simply your recurring revenue normalized to a yearly view. A common shortcut is ARR = MRR × 12. This works well for monthly subscriptions. If you sell annual contracts that are billed upfront, you still represent them as 1/12th of the contract value each month in MRR to keep metrics consistent.
This calculator is intentionally simplified. It takes a snapshot in time using your current ARPA and active customer count, and then estimates MRR and ARR from that. To understand net new MRR, expansion MRR, churned MRR, and net revenue retention (NRR), you would need a time-based view and cohort analysis, which is beyond the scope of this basic calculator.
If you have multiple plans, calculate a blended ARPA: divide your total recurring subscription revenue for the month by the number of active paying customers. This automatically bakes in the mix of plans, seat counts, and discounts. You can also run the calculator separately for each segment (e.g., self-serve vs. sales-led) for more granular insights.
Yes, as long as your revenue is recurring and subscription-based (for example memberships, subscription boxes, or media subscriptions), the same logic applies. Just make sure your revenue inputs only include recurring components and that you exclude one-off purchases, transaction fees, or ad-hoc services.