MRR & ARR Calculator
Sum recurring revenue across plans, project ARR and forecast 12 months of MRR with monthly churn and expansion rates.
Quick answer: Sum recurring revenue across plans, project ARR and forecast 12 months of MRR with monthly churn and expansion rates.
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Frequently asked questions
- What is MRR?
- Monthly recurring revenue — the predictable subscription revenue your business earns each month, normalised to a monthly figure (an annual plan billed at $1,200 contributes $100 to MRR).
- What is ARR?
- Annual recurring revenue — usually defined as MRR × 12. It's the headline metric for B2B SaaS investors.
- How is net new MRR calculated?
- Net new MRR = MRR × (expansion% − churn%). It tells you whether the existing book of business is growing or shrinking before any new customer acquisition.
- What's a healthy churn rate?
- B2C consumer SaaS commonly sees 4–7% monthly. SMB B2B SaaS targets 2–4%. Mid-market and enterprise SaaS targets <1%. Lower is always better; under-1% monthly is the bar for venture-backed scale.
- What's expansion MRR?
- Existing customers spending more — upgrades, seat expansion, add-ons. Best-in-class SaaS sees 1–3% monthly expansion, which can offset churn entirely (net negative churn).
- Are my numbers uploaded?
- No. The calculator runs entirely in your browser; we don't see your customer counts or pricing.
- Should annual plans count as MRR?
- Yes, but normalised. A $1,200 annual plan = $100 of MRR. If you bill upfront, the cash arrives once but MRR recognises it monthly.
- How accurate is the 12-month forecast?
- It's a simple compounding model — useful for sanity-checking trajectory, not for boardroom precision. Real businesses see seasonality, cohort effects and step changes the linear model can't capture.
- Can I add discounts and trials?
- Reflect them in the price field — a $49 plan billed at $25 (50% promo) contributes $25 to MRR, not $49. Trial users with $0 don't contribute until they convert.
- What about one-time setup fees?
- Don't include them in MRR — those are one-time revenue and don't repeat. Track them separately as 'one-time'.