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MRR & ARR Calculator

Calculate monthly and annual recurring revenue (MRR and ARR) from your customer count and average revenue per account — with churned MRR.

Number of customers

Average revenue per account (/mo)

Monthly churn rate

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How it works

MRR = customers × ARPU · ARR = MRR × 12 · Churned MRR = MRR × monthly churn %

Monthly recurring revenue (MRR) is the predictable subscription revenue a business earns each month — the number of active customers times the average revenue per account (ARPU). Annual recurring revenue (ARR) is simply MRR times twelve, the annualized run rate. For subscription businesses these are the headline growth metrics because they smooth out one-off payments into a steady, forecastable figure. Applying your monthly churn rate shows the MRR lost to cancellations each month — revenue that new sales or expansion must replace before the business grows at all.

Worked example

A SaaS product with 200 customers each paying $50 a month has an MRR of 200 × 50 = $10,000, and an ARR of 10,000 × 12 = $120,000. At 3% monthly churn, it loses 10,000 × 0.03 = $300 of MRR every month — the amount new or expansion revenue must cover just to hold the $10,000 flat.

Frequently asked questions

What is the difference between MRR and ARR?

MRR is monthly recurring revenue; ARR is that same figure annualized — MRR × 12. Monthly-billed businesses usually track MRR for a granular view, while annual-contract businesses often report ARR. They describe the same recurring revenue at two different time scales.

What is ARPU and how do I calculate it?

ARPU is average revenue per account (or per user) — total recurring revenue divided by the number of customers. If 200 customers generate $10,000 of MRR, ARPU is $50 per month. Raising ARPU through upsells or higher-tier plans grows MRR without needing more customers.

Why does churned MRR matter?

Churned MRR is the recurring revenue lost each month when customers cancel or downgrade. It sets the bar your new and expansion revenue must clear: if you add $300 of new MRR but churn $300, you have net-zero growth. Tracking it separates real growth from just replacing losses.

Related calculators

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Educational estimate, not financial advice.