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SaaS Metrics

MRR & ARR Subscription Calculator

Calculate SaaS Monthly Recurring Revenue, Annual Recurring Revenue, Churn Rate and Customer LTV for cross-border subscription business.

MRR Focused ARR & Churn 100% Free

MRR Calculator

Choose a mode and enter your subscription metrics to calculate MRR, ARR, churn and LTV.

Core Metrics
Total active paying subscription customers
Average monthly subscription fee per customer
Churn Data (Optional)
Total paying customers at the beginning of the month
Customers who cancelled during the month
MRR Movement
Monthly recurring revenue at the start of the month
MRR from new subscriptions this month
MRR gained from upgrades and add-ons
MRR lost from downgrades
MRR lost from cancellations
Churn & One-time
Total paying customers at the beginning of the month
Customers who cancelled during the month
Setup / onboarding fees — shown for reference, NOT included in MRR/ARR
Monthly Recurring Revenue
$0.00
Enter your metrics to calculate
Net New MRR
$0.00
Ending MRR
$0.00
ARR (Annual)
$0.00
Churn Rate
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Customer LTV
$0.00
History
No history yet — run your first calculation.

MRR & ARR Formulas

Understanding the standard SaaS calculations behind Monthly Recurring Revenue and related metrics.

1 Basic MRR (Simple Mode)

The simplest way to calculate Monthly Recurring Revenue — multiply your active subscribers by the average monthly fee.

Basic MRR = Active Subscribers x ARPU

2 Net New MRR (Advanced Mode)

Net MRR movement accounts for new sales, upgrades, downgrades, and cancellations during the month.

Net New MRR = New MRR + Expansion MRR - Contraction MRR - Churn MRR

3 Ending MRR & ARR

Ending MRR is your new monthly baseline. ARR annualizes it for investor reporting and long-term planning.

Ending MRR = Starting MRR + Net New MRR ARR = Ending MRR x 12

4 Churn Rate & LTV

Churn rate measures customer attrition. LTV estimates the total revenue a customer generates before churning.

Monthly Churn Rate = Churned Customers / Starting Customers x 100% LTV = ARPU / Monthly Churn Rate
How It Works

Calculate Your MRR in 3 Steps

Our calculator handles the math instantly so you can focus on growing your subscription business. Here is how to use it.

1

Choose a Mode

Start with Simple Estimate for a quick MRR snapshot, or switch to Advanced for net MRR movement analysis.

2

Enter Your Metrics

Input subscriber count, ARPU, MRR movements, and churn data. Results update in real time as you type.

3

Review Insights

Get MRR, ARR, churn rate, LTV, and a business health diagnosis with actionable recommendations.

Benefits

Why You Should Track MRR

Monthly Recurring Revenue is the lifeblood metric of any subscription business. Here is what tracking it unlocks.

Predictable Revenue

MRR gives you a reliable monthly revenue baseline, making forecasting and budgeting far more accurate.

Spot Churn Early

Tracking net new MRR reveals whether growth is accelerating or stalling before it becomes a crisis.

Investor-Ready Metrics

MRR, ARR, and churn are the standard metrics investors expect. Have them ready for due diligence.

Optimize Pricing

ARPU and expansion MRR data help you identify which pricing tiers drive the most recurring revenue.

Measure LTV Accurately

Combine churn rate with ARPU to calculate true customer lifetime value for your subscription model.

Scale Sustainably

Positive net new MRR month over month is the clearest signal of healthy, sustainable subscription growth.

Tips

How to Grow MRR

Reducing churn and increasing ARPU are the two levers that compound into significant MRR growth over time.

Drive Expansion Revenue

Offer tier upgrades, seat add-ons, and premium features. Expansion MRR is the cheapest revenue you can grow — no acquisition cost.

Offer Annual Plans

Annual subscriptions reduce churn by locking in customers longer and improve cash flow. Offer a 10-15% discount to incentivize yearly billing.

Improve Onboarding

Most churn happens in the first 30 days. A guided onboarding flow can cut early churn by 30-50% and protect your MRR base.

Monitor Churn Religiously

A 5% monthly churn means losing 46% of customers annually. Track it weekly, segment by cohort, and act before it compounds.

Bundle Value Tiers

Create mid-tier packages that offer clear value jumps. A well-structured pricing ladder can lift ARPU by 20-30% without increasing churn.

Win Back Cancelled Customers

Implement a save-flow with exit surveys and targeted win-back offers. Recovering even 10% of churned MRR significantly improves net growth.

FAQ

Frequently Asked Questions

Everything you need to know about MRR, ARR, churn rate, and subscription revenue metrics.

What is the difference between MRR and revenue?

Revenue includes all income — one-time fees, consulting, setup charges, and recurring subscriptions. MRR (Monthly Recurring Revenue) includes only the predictable, subscription-based portion that recurs every month. For example, if you charge a $500 setup fee plus a $50/month subscription, your MRR is $50 per customer, not $550. MRR excludes one-time fees because they are not predictable or recurring.

What is a good monthly churn rate for SaaS?

For SMB SaaS, a monthly churn rate of 3-5% is typical, while enterprise SaaS should aim for under 1-2%. Anything above 5% monthly is concerning — at 5% monthly churn, you lose about 46% of your customer base annually. The key is to track both customer churn (how many customers left) and revenue churn (how much MRR was lost), as they can differ significantly if you have varied pricing tiers.

How is ARR different from MRR?

ARR (Annual Recurring Revenue) is simply MRR multiplied by 12. It annualizes your monthly recurring revenue to show the yearly run-rate of your subscription business. Investors and executives typically use ARR for high-level planning and valuation, while MRR is the operational metric used month-to-month. Note: ARR is a forward-looking projection based on current MRR — it does not account for future growth or churn.

Should one-time setup fees be included in MRR?

No. Per SaaS accounting standards, MRR only includes recurring subscription revenue. One-time fees — such as setup, onboarding, training, or professional services — are recognized as separate revenue and should never be included in MRR or ARR calculations. Including them inflates your recurring revenue and makes it impossible to track true subscription growth. This calculator displays one-time fees for reference but excludes them from all MRR/ARR calculations.

What does negative net new MRR mean?

Negative net new MRR means your churn and contraction (downgrades) exceeded your new and expansion revenue for the month — your subscription business is shrinking. This is a red flag that requires immediate attention. Common causes include high churn rates, pricing issues, product dissatisfaction, or aggressive competitor activity. The calculator fully supports negative values and provides a revenue warning diagnosis when this occurs.

How is LTV calculated for subscription businesses?

For subscription businesses, LTV = ARPU divided by Monthly Churn Rate. For example, if your ARPU is $30/month and your monthly churn rate is 5% (0.05), then LTV = $30 / 0.05 = $600. This means each customer generates $600 of revenue on average before they cancel. If your churn rate is 0%, LTV is mathematically infinite — the calculator displays a special message instead, as zero churn typically indicates very new data rather than truly infinite retention.