MRR Calculator

The MRR Calculator computes monthly recurring revenue three ways, because businesses arrive with three kinds of data: a list of subscription plans, a customer count with average revenue per account, or an existing MRR figure that moved during the month. Pick the method that matches your records and the calculator returns total MRR, ARR, per-day and per-week revenue, and, for the components method, exactly how the month's MRR was built.

How It Works

Plans method: each plan's price times its subscribers, summed, with a breakdown of each plan's contribution and percentage of the total. ARPA method: total customers times average revenue per account. Components method: beginning MRR plus new MRR plus expansion MRR, minus contraction MRR, minus churned MRR, giving net new MRR and the ending total. In all methods ARR is MRR times 12, daily revenue is MRR divided by 30.4, and weekly revenue is MRR times 12 divided by 52.

$\text{MRR}=\text{Customers}\times\text{ARPA}\qquad \text{Net new MRR}=\text{New}+\text{Expansion}-\text{Contraction}-\text{Churned}$

Parameters

| Input | Required | Meaning | |---|---|---| | Method | Yes | Plans, ARPA, or components | | Plan price and subscribers | Plans method | One row per subscription tier | | Total customers and ARPA | ARPA method | Account count and average monthly revenue per account | | Beginning, new, expansion, contraction, churned MRR | Components method | The month's MRR movements |

Worked examples

ARPA: 100 customers at $50 average revenue gives MRR of$5,000, ARR of $60,000, about$164.47 a day. Components: beginning MRR $5,000, plus$800 new and $200 expansion, minus$150 contraction and $250 churned, is net new MRR of$600 and an ending MRR of $5,400 (ARR$64,800). Plans: 80 customers on a $29 Basic tier ($2,320) and 20 on a $99 Pro tier ($1,980) total $4,300, with Basic contributing 54% of revenue from 80% of the customers, the classic shape that makes Pro-tier expansion the highest-leverage growth motion.

Why the components view matters

Two companies can both end the month at $5,400 of MRR with opposite health: one added$600 net from new logos while barely churning; the other added $2,600 of new and expansion while losing$2,000 to contraction and churn. The second has a leaky bucket: at that churn level, growth spend mostly refills losses. Net new MRR decomposed is the earliest warning system a subscription business has, and the reason finance teams insist on the five components rather than a single MRR delta. Quick ratio, (new + expansion) / (contraction + churned), compresses the same story: above 4 is elite, near 1 is treading water.

MRR discipline

Count only recurring subscription revenue: exclude one-time setup fees, services, and hardware, or MRR stops meaning anything. Use the contracted monthly value for annual plans (annual price divided by 12), not the cash month. Count trials at zero until they convert. Keep the definition frozen month to month; a metric whose definition drifts cannot be trended, and most MRR arguments inside companies are definition arguments in disguise.

Limitations

The calculator is arithmetic over the figures you enter. It does not connect to billing systems, recognize revenue under accounting standards (MRR is not GAAP revenue), handle proration mid-month beyond the values you supply, or model cohorts and logo churn separately from revenue churn. Decisions that need precision, board reporting, fundraising, should reconcile MRR to the billing system of record.

Retention ratios from the same numbers

The components example supports two ratios investors ask for by name. Gross revenue retention excludes expansion: (5,000 - 150 - 250) / 5,000 = 92%, the share of starting revenue kept from existing customers before upsells. Net revenue retention includes expansion: (5,000 + 200 - 150 - 250) / 5,000 = 96%. Net retention above 100% means the existing base grows on its own and is the signature of strong land-and-expand products; below roughly 90% gross, acquisition spend is substantially refilling leakage. Computing both from the five components you already entered takes seconds and converts a bookkeeping exercise into a diagnosis: expansion is not masking weak retention here, but contraction plus churn at 8% of the base per month is the number to attack first.

MRR versus cash and revenue

MRR is a normalized operating metric, not cash collected and not recognized revenue. Annual prepayments make cash lumpy where MRR is smooth; usage overages make revenue exceed MRR in strong months; refunds and failed payments make cash less than either. Report MRR alongside cash receipts, never instead of them, and reconcile the two quarterly. When the figures diverge persistently, one of the definitions has drifted, and finding which one is a genuinely valuable afternoon.

Frequently Asked Questions

Is ARR just MRR times 12?

In this calculator, yes by construction. Companies also use committed annual contract value as ARR, which can differ from a monthly snapshot times twelve when contracts start mid-year; state your definition when reporting.

Should annual-plan customers count at full price in their payment month?

No. MRR normalizes them to one twelfth of the annual price each month, which is what makes MRR stable and comparable across months with different billing events.

What is the difference between contraction and churn?

Contraction is existing customers paying less (downgrades, seat reductions, discounts). Churn is customers leaving entirely, taking their whole MRR. Both reduce MRR but they have different causes and different fixes.