MRR / ARR Calculator
MarketingCalculate your Monthly and Annual Recurring Revenue (MRR/ARR) across pricing tiers, plus projected next-month MRR after churn. Free SaaS metrics calculator.
Total MRR
$6,860
Total ARR
$82,320
Projected Next-Month MRR (after churn)
$6,860
Total Customers
140
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 โ 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.
How to use this MRR/ARR calculator
- Enter the Tier 1 Price and Tier 1 Customers for your primary pricing plan.
- If you have additional pricing tiers, enter their respective prices and customer counts in Tier 2 and Tier 3 โ leave unused tiers at zero customers.
- Enter your Monthly Churn Rate if you want to see a next-month revenue projection; leave at 0% to skip this.
- Review your Total MRR and Total ARR, the two headline recurring revenue figures.
- Check Projected Next-Month MRR to see the revenue impact of your stated churn rate on your current base.
- Use Total Customers alongside MRR to sanity-check your average revenue per customer.
Formula & Methodology
Each tier's MRR contribution is calculated independently, then summed: Tier MRR = Tier Price ร Tier Customer Count Total MRR = ฮฃ (Tier MRR) Total ARR = Total MRR ร 12 Projected Next-Month MRR = Total MRR ร (1 โ 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 ร 12 = $82,320. Projected next-month MRR = $6,860 ร (1 โ 0.05) = $6,517, reflecting the expected revenue loss from churn alone, before accounting for any new customers added.
Frequently Asked Questions
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.
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.
Most SaaS products sell at multiple price points (e.g. Basic, Pro, Enterprise), and customers are distributed unevenly across them โ 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.
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 โ it's specifically isolating the impact of churn on your existing base, not a full growth forecast.
Benchmarks vary by customer segment โ 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.
No โ 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.
Yes, but they need to be normalised to a monthly figure first โ 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.
MRR reflects ongoing subscription value regardless of when cash was actually collected โ 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.
A declining projection signals that your churn is currently outpacing new customer acquisition within your existing base โ 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.
Yes โ 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.
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