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MRR Calculator

The MRR Calculator measures monthly recurring revenue from active subscription customers. It gives SaaS companies and other subscription businesses a normalized monthly revenue figure that can be tracked even when customers pay on monthly, quarterly, or annual billing cycles.

MRR should include only recurring subscription charges. One-time setup fees, usage charges that are not contractually recurring, taxes, and professional services are generally excluded so the metric reflects the predictable revenue base.

Calculator inputs

customers
$
$
$
Result
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Monthly recurring revenue
Base MRR—
Net expansion—
Annual recurring revenue—

1. Enter active subscriptions
List the number of customers or subscriptions in each pricing tier.

2. Enter recurring price
Convert each plan price to a monthly equivalent. Divide annual contracts by 12 and quarterly contracts by 3.

3. Include recurring expansion
Add recurring upgrades or add-ons that are part of the active monthly subscription value.

4. Exclude nonrecurring revenue
Remove setup fees, one-time purchases, refunds, and other amounts that do not repeat.

5. Review total MRR
Compare the result with prior months and reconcile it with the subscription billing system.

Formula

MRR = Sum of (Active subscriptions in tier × Monthly recurring price per subscription)

For nonmonthly billing:

Monthly equivalent = Contract value / Number of months in contract term

Optional movement check:

Ending MRR = Starting MRR + New MRR + Expansion MRR - Contraction MRR - Churned MRR

Where

  • Active subscriptions = currently billable recurring accounts
  • Monthly recurring price = normalized monthly subscription amount

Assumptions

MRR is a management metric rather than a formal accounting measure. Companies should apply one documented policy consistently, especially for discounts, paused accounts, usage-based charges, and foreign-currency subscriptions.

What the result means

Monthly recurring revenue based on the values entered.

Results are estimates and may differ from payroll, tax, legal, investment, or accounting systems.

Given

• 80 Basic subscriptions at $30 per month

• 25 Pro subscriptions at $90 per month

• 6 annual Enterprise contracts at $3,600 per year

Calculation

Basic MRR = 80 × $30 = $2,400

Pro MRR = 25 × $90 = $2,250

Enterprise monthly equivalent = $3,600 / 12 = $300

Enterprise MRR = 6 × $300 = $1,800

Total MRR = $2,400 + $2,250 + $1,800 = $6,450

Result

Monthly recurring revenue: $6,450

Interpretation

The active subscription base represents $6,450 in normalized recurring revenue per month, excluding one-time charges.

Should annual subscriptions be counted in the month they are paid?

For MRR, no. Normalize the recurring contract value across its service term, such as dividing an annual amount by 12.

Are free trials included?

Not until they become paid subscriptions, unless your internal definition assigns a recurring value to committed paid contracts that have not yet started.

Should usage-based revenue be included?

Include only the recurring or reliably committed component under your documented policy. Highly variable usage revenue is often tracked separately.

How should discounts be handled?

Use the actual recurring amount the customer is expected to pay during the discount period. Do not use the undiscounted list price.

How is MRR different from recognized monthly revenue?

MRR normalizes the current recurring run rate. Recognized revenue follows accounting rules and may include or defer amounts differently.