Startup & SaaS · Formula v1.0

MRR & ARR Calculator

Use the MRR & ARR Calculator to calculate ending monthly recurring revenue and annual recurring revenue.

Keep recurring and nonrecurring revenue separate. Enter average monthly revenue per customer in dollars, new monthly recurring revenue in dollars and churned monthly recurring revenue in dollars. At the worked-example inputs, the ending MRR is $55,000. MRR is the predictable monthly revenue, and ARR is MRR times twelve. On the example, 250 customers at $200 make $50,000, plus $8,000 of new MRR less $3,000 of churn gives an ending MRR of $55,000 and an ARR of $660,000. Track it monthly and look at the components: growth from new customers, expansion and losses tell different stories. It returns ending MRR, annual recurring revenue.

FreeNo sign-upInputs stay in-browserCSV exportReviewed August 17, 2026
LAST REVIEWEDAugust 17, 2026Inputs stay in your browser
Live calculation

Enter your numbers

Calculated result
Ending MRR$55,000
Annual recurring revenue$660,000
Sensitivity check

What if customers changes?

-10% input$50,000
0% input$55,000
+10% input$60,000

Transparent method

The formula

MRR = recurring monthly revenue; ARR = MRR × 12

Worked example

Ending MRR$55,000
Annual recurring revenue$660,000

Example inputs

Customers250
Average monthly revenue per customer$200
New monthly recurring revenue$8,000
Churned monthly recurring revenue$3,000

How to interpret the result

MRR is meant to capture only genuinely recurring subscription revenue, and folding in one-time implementation fees, professional services or usage-based overages inflates the figure without the underlying recurring business actually having grown. The distinction matters because investors and internal planning both treat MRR as a predictor of next month's baseline revenue, which nonrecurring income isn't.

Before you rely on it

What to check

Confirm every dollar counted in MRR is genuinely recurring and expected to repeat next month, separate from any one-time fees or variable usage charges billed alongside it.

The common error

Where people go wrong with MRR & ARR calculator

Including one-time setup fees or variable usage charges in the MRR figure. That inflates a number meant specifically to represent predictable, repeating revenue with income that isn't actually predictable in the same way.

Sensitivity evidence

How customers changes the ending MRR

MRR & ARR Calculator: ending MRR and annual recurring revenue across a range of customers, every other input held at the worked-example value.
CustomersEnding MRRAnnual recurring revenue
200$45,000$540,000
225$50,000$600,000
250worked example$55,000$660,000
275$60,000$720,000
300$65,000$780,000

Every input, tested

Which input moves the ending MRR most

MRR & ARR Calculator: ending MRR with each input moved on its own, every other input held at the worked-example value.
InputTested fromToEnding MRR at each endSwing
Customers225275$50,000 to $60,000$10,000 (18%)
Average monthly revenue per customer$180$220$50,000 to $60,000$10,000 (18%)
New monthly recurring revenue$7,200$8,800$54,200 to $55,800$1,600 (2.9%)
Churned monthly recurring revenue$2,700$3,300$55,300 to $54,700$600 (1.1%)

Two variables at once

Ending MRR by customers and average monthly revenue per customer

MRR & ARR Calculator: ending MRR at each combination of customers (rows) and average monthly revenue per customer (columns).
Customers \ Average monthly revenue per customer$160$200$240
200$37,000$45,000$53,000
225$41,000$50,000$59,000
250$45,000$55,000$65,000
275$49,000$60,000$71,000
300$53,000$65,000$77,000

Step by step

The worked example, input by input

Worked-example inputs and the results they produce for the MRR & ARR calculator.
InputValue used
Customers250
Average monthly revenue per customer$200
New monthly recurring revenue$8,000
Churned monthly recurring revenue$3,000
Ending MRR$55,000
Annual recurring revenue$660,000

Where the inputs come from

Customers and average monthly revenue per customer give the recurring revenue base, and new and churned monthly recurring revenue are the changes during the period. Include only recurring subscription revenue, not one-time setup fees or services. Take the figures from your billing system, normalizing annual contracts to a monthly amount by dividing by twelve, and exclude usage that is not committed. Use the same definitions each month.

Using the ending MRR in a real decision

Investors and buyers value SaaS companies on ARR multiples, so consistency of definition matters.

When the result stops applying

Recurring revenue definitions vary, and counting one-time revenue, discounts or unpaid invoices inflates it. ARR is a snapshot, not booked revenue under accounting rules. Annual prepaid contracts and usage-based pricing complicate the calculation. A fast-growing MRR can hide high churn.

What to compare it with

See the growth breakdown on the MRR growth calculator, retention on the net and gross revenue retention pages, and churn on the SaaS churn calculator. The LTV:CAC and CAC payback calculators show the economics behind the growth. The rule of 40 page balances growth and profit.

People also ask

Frequently asked questions

What is the difference between MRR and ARR?

MRR is monthly recurring revenue, and ARR is the same figure annualized, MRR times twelve. Companies with annual contracts often talk in ARR.

What counts as recurring revenue?

Subscription fees that repeat on a schedule. One-time fees, setup charges and non-recurring services are excluded.

How is ARR different from revenue?

ARR is an annualized run-rate of current subscriptions. Recognized revenue under accounting rules depends on what was delivered in the period.

Common startup & saas questions

Sources and evidence