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Pre Seed MRR Calculator

This calculator derives pre-seed monthly recurring revenue from active recurring customers and average monthly revenue per customer. It can also add a separate fixed amount of other recurring monthly revenue.

Founders can use the result to establish a consistent MRR baseline, compare month-to-month progress, and support runway or valuation scenarios. One-time setup fees and nonrecurring services should be excluded so the metric reflects repeatable monthly revenue.

MRR inputs

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$
Result
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Pre-seed MRR
Customer subscription MRR—
Annualized run rate—
Average daily recurring revenue—
Other recurring revenue share—

1. Count active recurring customers
Use customers with an active recurring agreement for the month.

2. Enter average monthly revenue
Use recurring revenue per active customer after monthlyizing longer billing periods.

3. Add other recurring revenue
Include predictable recurring revenue not captured in the customer average.

4. Exclude one-time items
Leave out setup, implementation, hardware, and irregular service fees.

5. Review MRR and annualized run rate
Use MRR as the monthly baseline and ARR as a simple twelve-month annualization.

Customer subscription MRR = Active recurring customers × Average monthly revenue per customer
Total MRR = Customer subscription MRR + Other recurring monthly revenue
Annualized run rate = Total MRR × 12

What the result means

The main result represents recurring revenue attributable to one normalized month.

It is not cash collected and does not account for churn, discounts, or expansion unless reflected in the inputs.

Given: 40 active customers at $150 per month plus $500 of other recurring revenue.

Calculation: Customer MRR = 40 × $150 = $6,000. Total MRR = $6,000 + $500 = $6,500. Annualized run rate = $6,500 × 12 = $78,000.

Result: Pre-seed MRR is $6,500.

Should annual subscriptions be included?

Yes. Divide the recurring contract value by 12 to convert it to monthly recurring revenue, regardless of when cash is collected.

Do pilot payments count as MRR?

Only when the pilot is contractually recurring and expected to continue. One-time paid trials should usually be excluded.

How should discounts be handled?

Use the actual recurring amount billed after discounts. Temporary discounts may be tracked separately if they distort the normalized run rate.

Can usage-based revenue be included?

Include a reasonable recurring monthly amount when usage is repeatable. Highly variable or nonrecurring usage may be better reported separately.

Is MRR the same as monthly cash receipts?

No. MRR normalizes contracted recurring revenue, while cash receipts depend on billing timing and collections.