MRR & ARR Calculator
Calculate monthly and annual recurring revenue from your subscriber count and average plan price, and project MRR 12 months out with churn and growth.
What this calculator does
This tool turns two simple numbers — how many paying subscribers you have and what they pay per month on average — into the two headline metrics every subscription business is measured on: MRR (monthly recurring revenue) and ARR (annual recurring revenue). Add an optional churn rate and a monthly signup number, and it also projects where your MRR lands twelve months from now. Everything is calculated in your browser; nothing you type is sent anywhere or stored.
MRR vs ARR — what is the difference?
MRR is the predictable revenue your subscriptions generate in a single month. It is the working number for operators: it moves every month, it reacts quickly to churn and new signups, and it is what you compare against monthly costs like payroll and hosting.
ARR is simply MRR multiplied by 12 — the same revenue expressed on an annual run rate. It is the number used in board decks, investor conversations and valuation multiples, because it smooths out monthly noise and makes companies of different sizes easier to compare. ARR is not the revenue you booked over the last twelve months; it is a forward-looking run rate that assumes today's recurring revenue continues for a year.
A common mistake is mixing one-off revenue into either figure. Setup fees, professional services, hardware sales and usage overages are real revenue, but they are not recurring, so they do not belong in MRR or ARR. If you sell annual plans, divide the annual price by 12 to get its monthly contribution rather than booking the whole amount in the month it was paid.
The formulas
- MRR = subscribers × average monthly price per subscriber
- ARR = MRR × 12
- Subscribers next month = subscribers × (1 − monthly churn rate) + new subscribers
- Projected MRR = the subscriber formula applied 12 times, then multiplied by the monthly price
The average monthly price per subscriber is also called ARPU (average revenue per user). If you sell several plans, calculate it as total MRR divided by total paying subscribers rather than averaging the list prices — discounts and plan mix matter.
The projection compounds month by month, which is why churn hurts far more than it looks. Churn is applied to your whole remaining base each month, while new signups are added as a flat number. The two cancel out at an equilibrium of new subscribers ÷ churn rate — for example, 20 signups a month against 3% churn settles at roughly 667 subscribers no matter how long you wait.
How to use it
- Enter the number of subscribers who are actually paying you today. Exclude free trials, free plans and delinquent accounts you have not collected from.
- Enter the average monthly price you collect per subscriber, net of ongoing discounts.
- Optionally enter your monthly churn rate — the percentage of subscribers who cancel in a typical month — and how many new subscribers you add per month.
- Read MRR, ARR and the 12-month projection on the right. Change one input at a time to see which lever moves the projection most.
Worked example
Suppose you have 250 subscribers paying an average of $29 per month. Your MRR is 250 × $29 = $7,250, and your ARR is $7,250 × 12 = $87,000.
Now add a 3% monthly churn rate and 20 new subscribers per month. In month one you lose about 7 subscribers and gain 20, ending at roughly 262. Repeat that twelve times and you finish the year at about 425 subscribers — an MRR of roughly $12,300, or around $148,000 ARR.
The instructive part is what happens when you change one number. Cutting churn from 3% to 1.5% while keeping the same 20 signups per month pushes the 12-month figure well past 460 subscribers, and it keeps climbing afterwards because the equilibrium point has doubled. Raising the average price by a few dollars lifts MRR immediately across the entire base. Both usually cost less than doubling acquisition spend.