Free MRR Calculator
Calculate your Monthly Recurring Revenue (MRR) instantly. Enter your subscriber count and pricing to get your MRR, ARR, daily revenue, and average revenue per customer. Works for any SaaS or subscription business.
How to Calculate MRR
Monthly Recurring Revenue (MRR) is the lifeblood metric of any subscription business. It represents the total predictable revenue your company expects to receive every month from all active subscriptions. Unlike one-time sales, MRR gives you a clear picture of your business's financial health and growth trajectory.
There are four types of MRR that every founder should track:
- New MRR - Revenue from brand-new customers who subscribed this month. This is your primary growth engine and reflects how well your acquisition funnel is working.
- Expansion MRR - Additional revenue from existing customers who upgraded their plan or purchased add-ons. This is often the most efficient source of growth because it costs far less than acquiring new customers.
- Contraction MRR - Revenue lost when existing customers downgrade to a cheaper plan. High contraction MRR signals pricing or value delivery problems that need immediate attention.
- Churned MRR - Revenue lost from customers who cancelled their subscription entirely. Keeping churn below 5% monthly is critical for sustainable growth.
Your Net New MRR combines all four: Net New MRR = New MRR + Expansion MRR - Contraction MRR - Churned MRR. A positive Net New MRR means your business is growing. The best SaaS companies maintain Net New MRR growth of 10-20% month-over-month in early stages.
Understanding these components helps you diagnose exactly where your revenue is growing or leaking. For example, if your New MRR is strong but overall growth is flat, you likely have a churn problem that needs solving before you invest more in acquisition.
MRR Formula
The basic MRR formula is straightforward:
MRR = Number of Active Subscribers × Average Revenue Per User (ARPU)
For example, if you have 200 subscribers each paying $49/month, your MRR is 200 × $49 = $9,800.
If you have multiple pricing tiers, calculate MRR for each tier and sum them:
MRR = (Tier 1 Subscribers × Tier 1 Price) + (Tier 2 Subscribers × Tier 2 Price) + ...
For annual plans, divide by 12 to normalize: a $480/year plan contributes $40/month to MRR. Do not include one-time fees, setup charges, or consulting revenue in your MRR calculation.
MRR Benchmarks 2026
Based on 800+ verified startups on ShowMRR, here are the current MRR benchmarks across stages:
- Pre-Revenue / Idea Stage: $0 - $100 MRR. Focus on finding your first 10 paying customers.
- Early Stage: $100 - $5,000 MRR. You have product-market fit signals. Focus on repeatable acquisition channels.
- Growth Stage: $5,000 - $50,000 MRR. Time to invest in team, processes, and scaling what works.
- Scale Stage: $50,000 - $200,000 MRR. Focus on efficiency, reducing churn, and expanding revenue per customer.
- Established: $200,000+ MRR. Enterprise-grade operations, multiple growth levers, and strong unit economics.
The median MRR for verified startups on ShowMRR is approximately $3,200/month. The top 10% exceed $45,000 MRR. Month-over-month growth rates of 10-15% are considered strong for early-stage companies.
Want to see where you stand?
See how your MRR compares to 800+ startups →Frequently Asked Questions
What is MRR (Monthly Recurring Revenue)?
MRR is the total predictable revenue your business earns each month from active subscriptions. It normalizes all subscription plans (monthly, quarterly, annual) into a single monthly figure, making it the most important metric for SaaS and subscription businesses. MRR excludes one-time payments, setup fees, and non-recurring charges.
How do you calculate MRR?
The simplest formula is: MRR = Number of Subscribers × Average Revenue Per User (ARPU). For more accuracy, sum the monthly value of each active subscription individually. Annual plans should be divided by 12, and quarterly plans divided by 3, to get their monthly contribution.
What is the difference between MRR and ARR?
ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. ARR gives you the annualized run rate of your recurring revenue. Enterprise SaaS companies typically report ARR, while early-stage startups and SMB-focused businesses prefer MRR for tracking monthly growth patterns.
Should I include one-time payments in MRR?
No. MRR should only include recurring subscription revenue. One-time fees like setup charges, consulting engagements, implementation fees, or lifetime deals should all be excluded. Including them would inflate your MRR and give a misleading picture of your recurring revenue base.
What is a good MRR growth rate?
For early-stage startups, 10-20% month-over-month MRR growth is considered strong. At scale (above $50K MRR), 5-10% monthly growth is excellent. Based on ShowMRR data from 800+ verified startups, the median growth rate is around 8% per month. Consistency matters more than occasional spikes.
How do annual subscriptions affect MRR?
Annual subscriptions should be divided by 12 to calculate their monthly MRR contribution. For example, a $120/year plan contributes $10/month to your MRR. This normalization ensures accurate month-to-month comparisons and prevents MRR spikes when annual plans are sold.
Related Tools
- ARR Calculator - Annual Recurring Revenue
- Churn Rate Calculator - Customer & Revenue Churn
- SaaS Valuation Calculator - Estimate Your Startup's Worth