Free tool
MRR Calculator (Monthly Recurring Revenue)
MRR tells you what your subscriptions bring in every month. Its movements tell you whether it is growing: what new customers and upgrades add, what downgrades and cancellations take away.
MRR (Monthly Recurring Revenue) is the monthly revenue a business can expect from its active subscriptions, an annual plan counting for one twelfth. ARR (Annual Recurring Revenue) is MRR multiplied by 12. MRR moves in four ways: new subscriptions, upgrades (expansion), downgrades (contraction) and cancellations (churn).
Your MRR Is Growing. What About Your Acquisition Cost?
MRR tells you what a subscriber is worth. Campaigns go after the next ones at the cost your retention allows.
20 minutes · No commitment · 100% confidential
How MRR is calculated
MRR = Customers × Average monthly revenue ARR = MRR × 12 Net new MRR = New + Expansion − Contraction − Churn Quick ratio = (New + Expansion) ÷ (Churn + Contraction)
400 customers at 250 € a month make 100,000 € of MRR, or 1.2 million of ARR. This month, 8,000 € of new subscriptions and 2,000 € of upgrades, minus 1,000 € of downgrades and 3,000 € of cancellations, add 6,000 €: +6 %.
The 2.5 quick ratio says that for every euro lost, 2.50 € come in. Read it with growth: MRR growing fast with a quick ratio close to 1 fills a leaking bucket, and every euro of advertising mostly replaces departures.
What the calculation helps you track
- Real growth of your subscriptions, with new customers and departures kept apart.
- The weight of departures: when churn eats what acquisition brings, it is the first thing to fix.
Frequently asked questions
How do I calculate MRR?
Add up the monthly amount of all your active subscriptions, an annual plan counting for one twelfth. Or multiply customers by average monthly revenue: 400 × 250 € = 100,000 €.
What is the difference between MRR and ARR?
ARR is MRR multiplied by 12: 100,000 € of MRR makes 1.2 million euros of ARR. Both measure recurring revenue, one per month, the other per year.
What is the SaaS quick ratio?
MRR gained (new and expansion) divided by MRR lost (churn and contraction). At 2.5, every euro lost is replaced by 2.50 €.
Growth partner
Positioning, acquisition, innovation: together we build a lasting growth system.
Théo MaupiléFreelance Paid Media
Google PartnerSuperMalter
