Track your Monthly Recurring Revenue with precision. Our MRR calculator helps you understand your subscription revenue, growth trends, and key metrics that drive sustainable business decisions.
Stop guessing at your recurring revenue and start making confident decisions based on accurate MRR calculations that show you exactly where your SaaS business stands.
Monthly Recurring Revenue
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Annual Recurring Revenue
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Monthly Churn Impact
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Watch your MRR grow with our interactive projection chart. See how your recurring revenue compounds over time with different growth assumptions and customer acquisition rates.
Adjust the projection slider to visualize different timeframes and understand what consistent growth means for your subscription business trajectory.
Model different MRR growth scenarios to see potential outcomes before they happen. Adjust variables like customer acquisition and churn rates to see how different scenarios impact your long-term MRR projections and subscription business planning.
Stop planning with just one set of assumptions and start preparing for multiple possible futures that could actually happen to your SaaS business.
MRR calculations are powerful tools for subscription business analysis, investor reporting, and strategic planning. Learn how to apply these metrics in real situations where they actually matter for your SaaS growth.
Most SaaS founders track MRR but never use it properly for decision-making. These practical applications show you exactly when and how to use MRR metrics to get better results from your subscription business planning efforts.
Investor Reporting
Use MRR as the primary metric for investor updates and fundraising conversations. Investors want to see consistent MRR growth because it demonstrates predictable revenue and business health. Track MRR growth rate month-over-month and show trend lines that prove your business model is working. This single metric tells investors more about your traction than vanity metrics like user signups or page views ever could.
Churn Management
Monitor how churn impacts your MRR to understand the real cost of losing customers. A 5% monthly churn rate might sound small, but it means losing significant MRR over time. Use MRR churn calculations to justify investments in customer success, retention programs, and product improvements. When you see exactly how much revenue you're losing each month, it becomes easier to make the case for retention initiatives that actually work.
Pricing Strategy
Use MRR per customer (ARPU) to evaluate pricing changes and upsell effectiveness. When you increase prices or add new tiers, track how it affects overall MRR and average revenue per customer. This helps you identify which pricing changes actually drive revenue growth versus those that cause more churn than they're worth. Make data-driven pricing decisions instead of guessing what customers will pay.
Cash Flow Planning
Project future cash flow based on MRR trends to make smarter hiring and spending decisions. Knowing your MRR trajectory helps you understand when you can afford to hire that next developer or increase marketing spend. Use conservative MRR growth projections to ensure you're not overspending based on optimistic assumptions. This prevents the cash flow problems that kill many otherwise promising SaaS companies.
Frequently Asked Questions About MRR
Find answers to the most common questions about Monthly Recurring Revenue, SaaS metrics, and subscription business growth.
What is MRR and why is it important for SaaS businesses?
MRR (Monthly Recurring Revenue) is the predictable revenue your subscription business generates each month. It's the most important metric for SaaS companies because it shows the health and trajectory of your business. Unlike one-time sales, MRR represents stable, recurring income that helps you forecast revenue, make hiring decisions, and demonstrate business viability to investors.
How do I calculate MRR for my subscription business?
Calculate MRR by multiplying your total number of paying customers by the average revenue per customer per month. For example, if you have 150 customers paying an average of $99 per month, your MRR is $14,850. Make sure to normalize annual subscriptions to monthly amounts (divide annual price by 12) and exclude one-time fees.
What's the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is simply your MRR multiplied by 12. MRR is better for tracking month-to-month changes and operational decisions, while ARR is often used for investor communications and annual planning. Both metrics track the same underlying business health, just on different time scales.
What is a good MRR growth rate?
A healthy MRR growth rate depends on your company stage and size. Early-stage SaaS companies often target 10-20% monthly MRR growth, while more mature companies might see 5-10% monthly growth. The key is consistent, sustainable growth rather than sporadic spikes. Track your growth rate over time and compare it to similar companies in your industry.
How does churn affect my MRR?
Churn directly reduces your MRR by the revenue lost from canceled subscriptions. A 5% monthly churn rate means you lose 5% of your MRR each month unless you acquire enough new customers to offset it. High churn makes growth extremely difficult because you're constantly replacing lost revenue before you can grow. Focus on keeping churn below 5% monthly for healthy SaaS growth.
Should I include free trials in my MRR calculation?
No, only include paying customers in your MRR calculation. Free trial users haven't committed to paying yet, so counting them would inflate your numbers and give you false confidence. Track trial-to-paid conversion separately, but keep MRR focused solely on actual recurring revenue from paying subscribers.
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