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Revenue

MRR Calculator

Monthly Recurring Revenue converts a customer base and its average spend into a single predictable monthly figure, the base unit most SaaS reporting is built on.

$

MRR

$60,000

What This Means

Keep one-time fees like setup charges out of this figure, MRR should only reflect predictable, recurring revenue.

The Formula

MRR = Number of Paying Customers × Average Revenue Per Account

Why It Matters

MRR is the number nearly every other SaaS metric is derived from or measured against, from ARR to CAC payback period to Net Revenue Retention, so getting it right (and consistently excluding one-time fees) keeps every downstream calculation accurate.

Example

A company has 400 paying customers at an average of $150 per month. MRR is 400 times $150, which equals $60,000.

Frequently Asked Questions

  • No. MRR is meant to capture only predictable, recurring revenue, so one-time fees like setup charges should be excluded to keep the figure representative of ongoing revenue.

  • ARR is simply MRR multiplied by 12, an annualized view of the same recurring revenue used for board reporting and year-over-year comparisons.

Related Calculators

ARR CalculatorNet Revenue Retention Calculator

From the Glossary

MRR (Monthly Recurring Revenue)ARR (Annual Recurring Revenue)ARPA (Average Revenue Per Account)
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