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MRR Calculator
TL;DR
Monthly Recurring Revenue (MRR) is the normalized monthly sum of all active subscription revenue. MRR = Σ (subscribers per plan × price per plan). Blended ARPA (average revenue per account) = total MRR ÷ total active subscribers. ARR = MRR × 12. For businesses with multiple pricing tiers, breaking MRR down by tier reveals mix shifts that a single headline number hides.
Edit tier names inline. MRR per tier = subscribers × price per subscriber.
MRR by tier
Total MRR
$29,205
Blended ARPA
$99.00
Annualized ARR
$350,460
ARPA = average revenue per account (total MRR ÷ total subscribers). ARR = MRR × 12 (assumes flat run-rate). See also: MRR definition · ARR calculator
How to calculate MRR
MRR = Σ (active subscribers on plan × monthly plan price). For annual subscribers, divide the annual contract value by 12 before summing — never book the full amount in month one.
Blended ARPA = total MRR ÷ total active subscribers. This is the single price an average customer pays and is the key input to LTV calculations.
Why break MRR down by tier
A flat MRR number can hide dangerous mix shifts. If MRR is flat but your subscriber count is growing — driven entirely by a low-price tier — your blended ARPA is falling, which compresses LTV and puts CAC payback at risk. Tracking MRR by tier makes mix shifts visible immediately.
MRR vs ARR — which should you use
Use MRR for operational decisions: pricing experiments, cohort analysis, churn monitoring. Use ARR for investor reporting and annual planning, since it is easier to benchmark against public company multiples. Both are the same number at different time scales — just be consistent about which one you use in each context.
Frequently asked questions
What is MRR and how is it calculated?
MRR (monthly recurring revenue) is the normalized monthly value of all active subscriptions. Calculate it by multiplying the number of subscribers on each plan by that plan's monthly price, then summing across all plans. Annual plans should be divided by 12 before adding them in — never counted as a lump sum.
What is the difference between MRR and ARR?
ARR (annual recurring revenue) is simply MRR × 12. It is a run-rate projection, not a trailing sum. Companies with strong annual contract business often lead with ARR; companies that bill monthly or have high churn typically focus on MRR for faster feedback loops.
What is ARPA and why does it matter?
ARPA (average revenue per account) = total MRR ÷ total active accounts. It measures the average customer value and is key to LTV calculations. Rising ARPA over time — without a corresponding drop in subscriber count — signals successful up-tiering or expansion revenue.
What counts as MRR — what should be excluded?
MRR includes only normalized recurring subscription charges. Exclude one-time setup fees, professional services, non-recurring add-ons, and refunds. Annual prepaid subscriptions should be divided by 12 and recognized monthly.
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Benchmarks are general SaaS ranges and vary by segment, stage and business model. Last reviewed 2026-06-28.