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MRR / ARR Calculator

Marketing

Calculate your Monthly and Annual Recurring Revenue (MRR/ARR) across pricing tiers, plus projected next-month MRR after churn. Free SaaS metrics calculator.

Reviewed by the thecalcu.com team · Last updated July 18, 2026

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Total MRR

$6,860
Total ARR
$82,320
Projected Next-Month MRR (after churn)
$6,860
Total Customers
140

This calculator computes your Total MRR, Total ARR, Projected Next-Month MRR (after churn), Total Customers from the values you enter.

Inputs
Tier 1 Price (per customer/month)Tier 1 CustomersTier 2 Price (per customer/month)Tier 2 CustomersTier 3 Price (per customer/month)Tier 3 CustomersMonthly Churn Rate
Outputs
Total MRRTotal ARRProjected Next-Month MRR (after churn)Total Customers

What is a MRR/ARR?

The MRR / ARR Calculator sums your subscription revenue across up to three pricing tiers to compute your total Monthly Recurring Revenue and Annual Recurring Revenue, the two most fundamental metrics for any SaaS or subscription business. MRR strips out one-time fees and non-recurring revenue to show the predictable, repeatable revenue your business can count on each month, which is why investors, founders, and operators track it more closely than total revenue.

This calculator also projects your next-month MRR after churn, isolating the impact of customer cancellations on your existing revenue base. Pair this tool with the Churn Rate Calculator to understand why customers are leaving, and the LTV:CAC Ratio Calculator to assess whether your acquisition efforts are sustainable relative to that churn.

Why Use This Calculator?

Investors and acquirers value SaaS businesses heavily on MRR and ARR multiples, making accurate tracking essential for fundraising, valuation conversations, and board reporting. Beyond external reporting, MRR is the clearest internal signal of whether a subscription business is actually growing, total revenue can be misleading if it includes one-time implementation fees or annual contracts paid in irregular lump sums.

This is especially useful for businesses with multiple pricing tiers, where calculating an overall "average revenue per customer" can obscure how much of your revenue comes from a small number of high-value Enterprise customers versus a larger base of lower-priced Basic customers.

Who Should Use This Calculator?

SaaS founders preparing investor updates or board decks need accurate, tier-aware MRR and ARR figures rather than rough estimates. Finance and RevOps teams can use this to sanity-check internal billing system reports against a simple independent calculation. Sales and customer success leaders can model how a specific churn rate translates into next-month revenue impact, motivating retention efforts. Anyone evaluating a SaaS acquisition or investment can use this calculator to verify a target company's reported MRR/ARR figures against the underlying tier pricing and customer counts.

What Insights Does This Calculator Give You?

Total MRR is your current monthly recurring revenue summed across all populated tiers, the headline metric for tracking month-over-month growth. Total ARR annualises that figure (MRR × 12), useful for annual planning and investor conversations that prefer yearly scale. Projected Next-Month MRR (after churn) shows the revenue impact if your stated churn rate plays out with no new customers added, isolating retention risk from growth. Total Customers sums your paying customer count across all tiers, giving quick visibility into your overall base size alongside the revenue figures.

How to use this MRR/ARR calculator

  1. Enter the Tier 1 Price and Tier 1 Customers for your primary pricing plan.
  2. If you have additional pricing tiers, enter their respective prices and customer counts in Tier 2 and Tier 3, leave unused tiers at zero customers.
  3. Enter your Monthly Churn Rate if you want to see a next-month revenue projection; leave at 0% to skip this.
  4. Review your Total MRR and Total ARR, the two headline recurring revenue figures.
  5. Check Projected Next-Month MRR to see the revenue impact of your stated churn rate on your current base.
  6. Use Total Customers alongside MRR to sanity-check your average revenue per customer.
Show formula & methodology ↓Show less ↑

Formula & Methodology

Each tier's MRR contribution is calculated independently, then summed:

Tier MRR = Tier Price × Tier Customer Count
Total MRR = Σ (Tier MRR)
Total ARR = Total MRR × 12
Projected Next-Month MRR = Total MRR × (1 − Monthly Churn Rate)

Example: Tier 1 at $29/month with 100 customers ($2,900 MRR), Tier 2 at $99/month with 40 customers ($3,960 MRR), no Tier 3 customers, 5% monthly churn. Total MRR = $2,900 + $3,960 = $6,860. Total ARR = $6,860 × 12 = $82,320. Projected next-month MRR = $6,860 × (1 − 0.05) = $6,517, reflecting the expected revenue loss from churn alone, before accounting for any new customers added.

Frequently Asked Questions

What is MRR?
MRR (Monthly Recurring Revenue) is the predictable revenue a subscription business expects to receive each month from its active customers, calculated by summing each customer's monthly subscription price. It excludes one-time fees, setup charges, or non-recurring revenue, making it a cleaner signal of a SaaS business's underlying revenue health than total monthly revenue.
What is the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is simply MRR multiplied by 12, expressing the same recurring revenue on an annual basis. Companies with longer sales cycles or enterprise customers often report ARR since it better reflects the scale of annual contract value, while early-stage and smaller SaaS companies often track MRR for its more immediate, month-to-month visibility into growth.
Why does this calculator ask for separate pricing tiers?
Most SaaS products sell at multiple price points (e.g. Basic, Pro, Enterprise), and customers are distributed unevenly across them, a few high-value Enterprise customers might contribute as much MRR as many more Basic customers. Calculating each tier separately and summing the results gives a more accurate total than averaging your price across all customers.
How does churn rate affect my MRR projection?
Monthly churn rate represents the percentage of your current MRR you expect to lose next month from cancellations or downgrades, applied here as a simple percentage reduction to your current total MRR. This calculator's projection doesn't account for new customers added next month, it's specifically isolating the impact of churn on your existing base, not a full growth forecast.
What is considered a good monthly churn rate for a SaaS business?
Benchmarks vary by customer segment, small business and self-serve SaaS products often see 3-7% monthly churn, while mid-market and enterprise SaaS with annual contracts and dedicated account management typically see well under 1-2% monthly churn. Compare your churn rate against companies with similar customer profiles and contract types rather than a single universal benchmark.
Should I include trial users or freemium customers in my customer count?
No, MRR and ARR are recurring revenue metrics, so only paying, actively-billed customers should be counted in each tier's customer count. Trial users generating no revenue and free-tier users on a freemium model contribute $0 to MRR and shouldn't be included unless and until they convert to a paid tier.
Does MRR include annual contracts paid upfront?
Yes, but they need to be normalised to a monthly figure first, an annual contract worth $1,200 should be entered as $100/month in this calculator's tier pricing, not $1,200, since MRR specifically measures the monthly-equivalent recurring value regardless of actual billing frequency.
How is MRR different from total cash collected in a month?
MRR reflects ongoing subscription value regardless of when cash was actually collected, a customer who pays annually contributes their monthly-equivalent value to MRR every month, even though cash was collected once. Total cash collected is a separate accounting figure that can fluctuate significantly month to month based on billing cycles, while MRR stays smooth and predictable.
What should I do if my projected next-month MRR is declining?
A declining projection signals that your churn is currently outpacing new customer acquisition within your existing base, review which tier or customer segment is churning most using the [Churn Rate Calculator](/churn-rate-calculator/), and compare your customer acquisition efforts against the [CAC Calculator](/cac-calculator/) and [LTV:CAC Ratio Calculator](/ltv-cac-ratio-calculator/) to assess whether you're acquiring customers efficiently enough to outpace losses.
Can I use this calculator if I only have one pricing tier?
Yes, simply enter your price and customer count in Tier 1, and leave Tier 2 and Tier 3 customer counts at zero. The calculator will correctly compute your total MRR and ARR using just the populated tier.
Also known as
MRR calculatorARR calculatormonthly recurring revenue calculatorannual recurring revenue calculatorSaaS revenue calculator