MRR / ARR Calculator

MRR (monthly recurring revenue) is the SaaS heartbeat; ARR is its annual view. Compute both from customers and average price — and project 12 months ahead at your current growth rate to see what compounding is quietly building.

How to use this calculator

Enter paying customers and average monthly revenue per customer.
Optionally add your net monthly growth rate for projections.
Only recurring revenue belongs here — one-time fees and services stay out.

Formula used

MRR = Customers × ARPU · ARR = MRR × 12

Annual contracts contribute their monthly equivalent (contract ÷ 12). Net growth = new MRR + expansion MRR − churned/contracted MRR. Compounding rule of thumb: months to double ≈ 70 ÷ growth-%.

Example calculation

Worked example

240 customers × 2,500: MRR = 600,000, ARR = 7.2M.

At 8% monthly growth, 12 months compounds to MRR ≈ 1.51M (152% annualized — not 96%) with doubling every ~9 months. Compounding, not addition, is the story.

Why SaaS runs on MRR

Recurring revenue is predictable revenue, and MRR makes the machine legible: decompose any month into new, expansion, contraction and churn, and you know exactly which lever moved. ARR is the same number dressed for annual planning and valuations — investors price SaaS in ARR multiples.

The discipline is in what to exclude: one-time setup fees, services and non-recurring deals inflate the number and then betray you. And monthly growth annualizes by compounding — 8%/month is 152%/year, which is why small monthly-rate differences produce wildly different companies within two years.

Why use this calculator?

Get clean MRR/ARR figures with the annual-contract conversion done right.
Project growth with compounding instead of naive multiplication.
See months-to-double — the growth metric founders actually feel.

Frequently asked questions

What counts in MRR?

Recurring subscription revenue only, normalized to monthly: a 12,000/year contract adds 1,000 to MRR. Exclude one-time fees, implementation charges and usage that doesn't recur predictably.

What is the difference between ARR and revenue?

ARR is a run-rate snapshot (this month's recurring revenue × 12), not accounting revenue for a past year. A fast-growing company's ARR exceeds its trailing-twelve-month revenue — which is precisely why investors use it.

What is good MRR growth?

Early-stage SaaS often targets 10–20% monthly; growth-stage companies measure annually, where the old benchmark 'triple, triple, double, double, double' describes the elite path. Net revenue retention above 100% makes any of it far easier.