What Is an MRR Calculator?
An MRR (Monthly Recurring Revenue) calculator helps subscription businesses track their predictable revenue stream. MRR is the lifeblood of SaaS and subscription companies, providing a clear picture of revenue health and growth trajectory. This tool calculates both base MRR and net MRR after accounting for new, expansion, and churned revenue.
How to Use This MRR Calculator
- Enter your total number of active customers.
- Input the average revenue per customer per month (ARPU).
- Optionally, add new MRR from new customers, expansion MRR from upsells, and churned MRR from lost customers.
- Click “Calculate” to see your base MRR, net MRR, and ARR.
Understanding MRR Components
Base MRR = Customers × ARPU
Net MRR = Base MRR + New MRR + Expansion MRR − Churned MRR
ARR = Net MRR × 12
New MRR comes from newly acquired customers. Expansion MRR includes upsells, cross-sells, and upgrades. Churned MRR is the revenue lost from cancellations and downgrades. Positive net new MRR (new + expansion > churned) indicates healthy growth.
Frequently Asked Questions
What is ARR?
ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. It provides an annualized view of your recurring revenue and is commonly used by SaaS companies reporting to investors.
What is net negative churn?
Net negative churn occurs when your expansion revenue from existing customers exceeds your churned revenue. This means your existing customer base is growing in value even without new acquisitions.