MRR and ARR Calculator

Start with subscriber data or MRR, apply expansion and contraction, and calculate the resulting monthly and annual run rate.

Starting point

• Subscribers × monthly revenue: Starting MRR
• Currency: USD, EUR, GBP, CAD, AUD
• Starting active subscribers
• Monthly revenue per subscriber
• Optional monthly movement: Add recurring upgrades and subtract recurring cancellations or downgrades. Exclude one-time revenue.
  • Expansion MRR
  • Churned or contraction MRR

Calculate ending MRR and ARR. Clear.

MRR and ARR turn subscriptions into a comparable run rate

Monthly recurring revenue normalizes active subscriptions into one month. Annual recurring revenue multiplies that monthly run rate by 12. Together they make recurring revenue easier to compare across billing intervals and reporting periods.

How to calculate recurring revenue

• Starting MRR: active subscribers × average monthly recurring revenue per subscriber.
• Ending MRR: starting MRR + expansion MRR − contraction and churned MRR.
• Ending ARR: ending MRR × 12.

Normalize annual and quarterly plans into monthly values before adding them. Exclude setup fees, consulting, hardware, and other one-time revenue so the result remains a recurring run rate.

Use the run rate with context

ARR is a snapshot, not a promise. Review new MRR, expansion, contraction, and churn separately to understand why the total moved. Pair billing metrics with acquisition and retention behavior to find the product experiences that create durable recurring growth.