Finance

MRR Calculator

Calculate monthly recurring revenue from active customers and average recurring revenue per customer.

This MRR result is a planning metric, not accounting, tax, investment, or legal advice. Reconcile reporting definitions with your financial records.

How to use this tool

How to use the MRR Calculator

Enter the number of active recurring customers and their average monthly recurring revenue. Use the same point-in-time or period definition each month.

Count active recurring customers for the measurement date.
Enter average recurring monthly revenue per active customer.
Calculate MRR and review the annualized run-rate estimate.

Method

Formula or calculation method

MRR = active recurring customers × average monthly recurring revenue per customer. Annualized recurring revenue is MRR × 12.

Interpretation

What the result means

MRR normalizes recurring subscription revenue into a monthly baseline. It is not the same as cash collected, bookings, or recognized accounting revenue.

Example

Worked example

250 customers paying an average of $49 per month produce $12,250 in MRR and a $147,000 annualized run rate.

Avoid

Common mistakes

Exclude one-time setup fees, services, taxes, refunds, and the full value of annual contracts unless you normalize them to a monthly amount.

Best use

When to use it

Use MRR for recurring-revenue trend reporting, pricing scenarios, hiring plans, and comparisons between subscription periods.

Common questions

MRR Calculator FAQ

What is MRR?

Monthly recurring revenue is the normalized recurring subscription revenue a business expects in one month from active customers.

What revenue should be excluded from MRR?

Normally exclude one-time fees, professional services, hardware, taxes, and other non-recurring revenue. Keep your definition consistent.

How is MRR different from ARR?

MRR is a monthly recurring-revenue measure. ARR annualizes that run rate, commonly by multiplying MRR by 12.

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