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Monthly Recurring Revenue (MRR) is the most important metric for any subscription business. It normalizes revenue across billing periods — annual subscribers, monthly subscribers, and quarterly subscribers all contribute their monthly equivalent — giving you a single number that represents predictable, steady-state revenue.
This calculator lets you add up to five subscription plans, each with its own monthly price and subscriber count, and computes the combined MRR, Annual Recurring Revenue (ARR = MRR × 12), and a 12-month growth projection at a custom growth rate.
Key MRR concepts
New MRR — revenue from brand-new customers this month. Expansion MRR — additional revenue from existing customers who upgraded. Churned MRR — revenue lost from cancellations. Net New MRR = New MRR + Expansion MRR − Churned MRR.
A healthy SaaS typically targets Net New MRR that grows the base by 10–20% month-over-month at early stage and 3–5% at scale.
How to use this calculator
- Enter each plan's monthly price and number of active subscribers.
- For annual plans, enter the monthly equivalent (annual price ÷ 12).
- Optionally enter a monthly growth rate to project future MRR.
Frequently asked questions
Should I count annual subscribers in MRR? Yes — MRR includes the monthly equivalent of all recurring revenue regardless of billing period. A customer paying $1,200/year contributes $100/month to MRR.
What's the difference between MRR and revenue? Revenue (cash received) differs from MRR (recognized monthly equivalent). If you collect a $1,200 annual payment upfront, you recognize $100/month to MRR, but received $1,200 in cash in month 1. Investors and VCs evaluate both, but MRR is the primary growth health metric.
What's a good MRR growth rate? Y Combinator famously targets 5–7% week-over-week (about 20–30% month-over-month) during the early growth phase. At later stages, 10–15% monthly is strong, and 5–8% is typical for a healthy, scaling SaaS.