MRR & ARR Calculator
Multiply paying customers by average monthly revenue to get monthly and annual recurring revenue.
- ARR
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What is the MRR & ARR Calculator?
Monthly recurring revenue, or MRR, is the predictable subscription revenue you earn each month: paying customers multiplied by average revenue per customer. Annual recurring revenue, or ARR, is MRR times twelve. Both count only recurring charges, not one-off fees.
How it works
MRR = paying customers x average revenue per customer per month. ARR = MRR x 12. Average revenue per customer should be the monthly amount after discounts and before taxes. One-time set-up fees and usage spikes are best left out.
How to use it
- Enter the number of paying customers.
- Enter the average monthly revenue per customer, excluding tax.
- Read the monthly and annual recurring revenue.
- Update it each month to follow growth or decline.
MRR & ARR Calculator — FAQ
Should I include free trials?
No. Count only customers who are paying, since trials do not yet produce recurring revenue.
How do I handle annual plans?
Divide the yearly payment by twelve and treat that as the monthly amount for that customer.
Is ARR the same as yearly revenue?
Not exactly. ARR is a run-rate based on today’s customers, while yearly revenue is what you actually collected, including changes during the year.