Monthly Recurring Revenue (MRR) Calculator

Fill in this form to calculate your Monthly Recurring Revenue (MRR).

What is Monthly Recurring Revenue (MRR)?

Monthly Recurring Revenue (MRR) is a measure of the predictable and recurring revenue components of your subscription business. It's a key metric for subscription-based companies and SaaS businesses.

MRR Formula:

Number of Customers * Average Revenue per User (ARPU)

MRR helps in forecasting future revenue, measuring growth, and assessing the overall health of a subscription business. It's often used in conjunction with metrics like Customer Retention Rate and Customer Lifetime Value (CLV) to get a comprehensive view of business performance.

Related Calculators

ARPU Calculator Net Revenue Retention Quick Ratio Churn Rate CLV Calculator
View all tools →

Frequently Asked Questions

What's the difference between MRR and ARR? ▼
MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue) are closely related metrics. MRR measures your predictable revenue stream on a monthly basis, while ARR provides an annualized view. To convert MRR to ARR, simply multiply MRR by 12. For example, if your MRR is $10,000, your ARR would be $120,000.
How do I calculate ARPU? ▼
ARPU (Average Revenue per User) is calculated by dividing your total revenue by the number of users or customers. For MRR calculations, you'd typically use monthly revenue. For example, if your monthly revenue is $50,000 and you have 500 customers, your ARPU would be $100 ($50,000 / 500). Use our ARPU Calculator to calculate this.
Should I include one-time fees in MRR? ▼
Generally, one-time fees should not be included in MRR calculations. MRR should only include predictable, recurring revenue streams. One-time fees, such as setup fees or professional services, are typically excluded as they don't represent ongoing, predictable revenue.
How can I increase my MRR? ▼
To increase your MRR, consider these strategies:
  • Acquire new customers to increase your customer base
  • Reduce churn by improving customer retention (use our Customer Retention Rate Calculator)
  • Implement upselling and cross-selling to increase ARPU
  • Offer pricing tiers to capture different customer segments
  • Introduce annual plans with a discount to secure longer-term commitments
How does MRR relate to company valuation? ▼
MRR is a crucial metric for valuing subscription-based businesses. Investors often use a multiple of MRR or ARR to estimate a company's value. The specific multiple can vary based on factors like growth rate, churn rate, and market conditions. Generally, higher and more stable MRR leads to higher valuations.
What's the difference between MRR and revenue? ▼
MRR focuses specifically on the predictable, recurring portion of your revenue from subscriptions. It doesn't include one-time purchases, fees, or any non-recurring revenue. Total revenue, on the other hand, includes all income streams, both recurring and non-recurring. For subscription businesses, MRR provides a clearer picture of sustainable, long-term business health.
How does MRR impact other business metrics? ▼
MRR is closely tied to several other important business metrics:
  • Customer Lifetime Value (CLV): Higher MRR often correlates with higher CLV. Calculate your CLV using our CLV Calculator.
  • Customer Acquisition Cost (CAC): MRR helps determine how quickly you can recover your CAC. Use our CAC Calculator to compare.
  • Churn Rate: MRR lost to churned customers is a critical metric. Track this alongside your Customer Retention Rate.
  • Growth Rate: Month-over-month changes in MRR are a key indicator of business growth.

The faster, easier way to capture user feedback at scale

Join over 3,051 product managers and see how easy it is to build products people love.

Aaron Dye Timothy M. Ben Marco Chris R.
from 124+ reviews
ProductLift dashboard preview ProductLift dashboard preview

Did you know 80% of software features are rarely or never used? That's a lot of wasted effort.

SaaS software companies spend billions on unused features. In 2025, it was $29.5 billion.

We saw this problem and decided to do something about it. Product teams needed a better way to decide what to build.

That's why we created ProductLift - to put all feedback in one place, helping teams easily see what features matter most.

In the last five years, we've helped over 3,051 product teams (like yours) double feature adoption and halve the costs. I'd love for you to give it a try.

Ruben Buijs, Founder
Ruben Buijs

Founder & Digital Consultant