MRR & ARR Calculator
Turn customers and average revenue into recurring revenue. Enter your customer count and monthly ARPA to get MRR and ARR instantly — the two numbers every SaaS conversation runs on.
Customer Acquisition Cost (CAC)
How much you spend, on average, to win one new customer.
Customer Lifetime Value (LTV)
The total gross profit you earn from an average customer before they churn.
LTV : CAC Ratio
The single most-watched SaaS efficiency number. 3:1 is the healthy benchmark.
MRR & ARR
Monthly and annual recurring revenue from your customer base.
Churn Rate
The percentage of customers you lose in a period — and the lifetime it implies.
Customer Retention Rate
The percentage of customers you kept, excluding new ones you added.
SaaS Valuation
A revenue-multiple estimate. Faster growth earns a higher multiple.
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How to Calculate MRR and ARR
250 customers at $50/month ARPA gives $12,500 MRR and $150,000 ARR. Simple — but only if you normalise annual plans to monthly and exclude one-off fees.
The Four Components of MRR
Total MRR is a net of four moving parts. Tracking them separately shows whether growth is healthy or just masking churn:
| Component | What it is |
|---|---|
| New MRR | Revenue from customers won this period |
| Expansion MRR | Upgrades and upsells from existing customers |
| Contraction MRR | Downgrades from existing customers |
| Churned MRR | Revenue lost to cancellations |
Net new MRR = New + Expansion − Contraction − Churned. When expansion alone outpaces contraction and churn, you have net negative revenue churn — the strongest growth signal in SaaS.
Why ARR Drives Valuation
Investors value SaaS on ARR because it's predictable and compounding. A company at $150k ARR growing 80% year over year is worth far more than a static one at the same ARR. See what a multiple looks like in the SaaS valuation calculator, and pair MRR growth with low churn to keep the run-rate climbing.
Built and tested by Alston Antony — 500+ SaaS tools reviewed, 15,000-member founder community. Free, private founder math.
Frequently Asked Questions
How do you calculate MRR?
The simplest MRR is customers × average revenue per account per month (ARPA). If you have 250 customers paying an average of $50/month, MRR = $12,500. For a fuller picture, MRR also breaks into new, expansion, contraction, and churned MRR — but customers × ARPA is the right starting number.
How do you calculate ARR from MRR?
ARR = MRR × 12. Annual recurring revenue is just monthly recurring revenue annualised. $12,500 MRR is $150,000 ARR. Investors typically value SaaS on ARR, so most funding and valuation conversations happen in ARR terms.
Should annual plans be counted in MRR?
Yes, normalised to a monthly figure. Divide an annual contract by 12 and add it to MRR. Do not book the whole annual payment as one month of MRR — that spikes the number artificially. The goal of MRR is a smooth, comparable monthly run-rate.
What is the difference between MRR and revenue?
MRR counts only recurring subscription revenue, normalised monthly. It excludes one-time fees, setup charges, and usage overages that do not repeat predictably. That is the point — MRR measures the predictable, recurring base that makes SaaS valuable.
Is this MRR calculator free?
Yes — free, no signup, no limits. It runs entirely in your browser and stores nothing.