MRR Calculator
Monthly recurring revenue is the heartbeat of a subscription business: the predictable revenue that repeats every month. At its simplest it is your paying customers times your average revenue per user, and from that one figure you can read annual recurring revenue and model how new sales, expansions, and churn move the base each month. Enter your customer count, average revenue per user, new and expansion revenue, and your monthly churn rate, and this calculator returns MRR, ARR, churned MRR, and net new MRR.
MRR formula
MRR = paying customers * average revenue per user
ARR = MRR * 12
Churned MRR = MRR * (monthly churn rate / 100)
Net new MRR = new MRR + expansion MRR - churned MRR
MRR counts only recurring subscription revenue normalized to a month. Net new MRR is the monthly change in the recurring base from new, expansion, and churned revenue.
Subscription metrics context
- MRR excludes one-time fees so it reflects predictable, repeatable revenue.
- ARR is just MRR times 12 and is the common headline figure for subscription businesses.
- Positive net new MRR means the recurring base is growing month over month.
- Expansion MRR from upgrades can offset churn even without new customers.
- Tracking churned MRR separately shows how much new revenue you must win just to stay flat.
MRR calculator: frequently asked questions
What is monthly recurring revenue (MRR)?
MRR is the predictable subscription revenue a business earns each month. The simplest form is the number of paying customers multiplied by the average revenue per user (ARPU) per month. It excludes one-off charges and counts only the recurring portion of each subscription, normalized to a monthly figure.
How is annual recurring revenue (ARR) related?
ARR is simply MRR multiplied by 12, the annualized value of the recurring revenue base. It is the headline figure many subscription businesses report. Because it is MRR times 12, any change in MRR scales directly into ARR.
What is net new MRR?
Net new MRR is the change in MRR over a month: new MRR from new customers plus expansion MRR from upgrades, minus churned MRR lost to cancellations and downgrades. A positive net new MRR means the recurring base is growing; a negative figure means it is shrinking.
How is churned MRR calculated here?
Churned MRR is the monthly churn rate, entered as a percentage, applied to the current MRR. If your MRR is 50,000 dollars and monthly churn is 3 percent, churned MRR is 1,500 dollars. This is the recurring revenue you lose each month before adding any new or expansion revenue.
Should I include one-time fees in MRR?
No. MRR captures only recurring subscription revenue normalized to a month. Set-up fees, one-off services, and usage spikes that are not contractual recurring charges are excluded, because the point of MRR is to measure the predictable, repeatable revenue base.
Official sources
- U.S. Securities and Exchange Commission: Guidance on non-GAAP measures such as recurring revenue.
- U.S. Small Business Administration: Managing business finances.
Reviewed by the CalculatorHub team, edited by James Graham, 16 June 2026. See our methodology.