MRR & ARR Calculator

Multiply paying customers by average monthly revenue to get monthly and annual recurring revenue.

MRR
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ARR
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In short

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

  1. Enter the number of paying customers.
  2. Enter the average monthly revenue per customer, excluding tax.
  3. Read the monthly and annual recurring revenue.
  4. Update it each month to follow growth or decline.
Questions

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.

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