MRR and ARR Calculator
Turn active customers and average revenue into your monthly recurring revenue and annual run rate. Two numbers that show the health of a subscription business.
Calculate your MRR and ARR
MRR equals active customers times average monthly revenue. ARR equals MRR times 12.
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How it works
MRR and ARR translate your customer base and pricing into predictable recurring revenue.
Enter active customers
Add the number of customers currently paying you on a recurring basis.
Enter average revenue
Add the average monthly revenue you collect per customer, sometimes called ARPU.
Read MRR and ARR
We multiply customers by average revenue for MRR, then multiply by 12 to project your annual run rate.
Frequently Asked Questions
Everything you need to know about MRR and ARR.
MRR is monthly recurring revenue, the predictable revenue you collect from active customers each month. It smooths out one-time charges and shows the steady income your business can count on. It is a core metric for any subscription or retainer business.
MRR is your recurring revenue in a single month, while ARR is the annual run rate, or MRR multiplied by 12. ARR projects your current monthly revenue across a full year. Both describe the same underlying revenue, just over different time frames.
Multiply your number of active customers by the average monthly revenue per customer. For example, 50 customers paying 80 each gives 4000 MRR. Multiply MRR by 12 to get the annual run rate, which here would be 48000 ARR.
You can grow MRR by adding new customers, raising average revenue per customer through upgrades or higher pricing, and reducing churn so existing revenue stays in place. Reducing churn is often the most efficient lever because it protects revenue you already earned.
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A professional PDF in about a minute. No account, no invoice limit.
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