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Business

Verified calculator with a transparent formula

Business

Monthly Recurring Revenue Calculator.

Calculates your monthly recurring revenue (MRR) based on the number of customers and average revenue per customer per month.

Results update live as you type.
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Your inputs

How it works

  1. 1

    Enter the total number of paying customers.

  2. 2

    Enter the average revenue per customer per month (ARPU).

  3. 3

    Multiply the two numbers to get your MRR.

customers * arpu

Frequently asked questions

What is MRR?

MRR stands for Monthly Recurring Revenue, the predictable revenue a business earns each month from subscriptions or recurring payments.

How is ARPU calculated?

ARPU is total revenue divided by the number of customers in a given period. For MRR, use the average monthly revenue per customer.

Should I include one-time fees in MRR?

No, MRR should only include recurring revenue. One-time fees are excluded to keep the metric predictable.

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Results

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Monthly Recurring Revenue

5 000,00 $$

Ask Anything

Estimate for general guidance only — verify important decisions with an appropriate professional.

How it works

Calculates your monthly recurring revenue (MRR) based on the number of customers and average revenue per customer per month.

  1. Enter the total number of paying customers.
  2. Enter the average revenue per customer per month (ARPU).
  3. Multiply the two numbers to get your MRR.

Formulas

The math behind this calculator, written out so you can verify the result.

MRR Formula

MRR = Number of Customers × ARPU

Multiply the total number of paying customers by the average revenue each customer generates per month.

Example:

Input: Customers = 100, ARPU = $50

Calculation: 100 × $50

Result: $5,000

Real-world use cases

Where this calculation shows up in everyday life.

Track business growth

Monitor MRR over time to see if your subscription business is growing.

Example: Compare MRR month over month.

Forecast revenue

Use MRR to project future revenue and plan budgets.

Example: Estimate next quarter's revenue based on current MRR.

Evaluate pricing changes

See how changing ARPU affects total MRR.

Example: Increase ARPU by $5 and recalculate.

Tips and common mistakes

Tips

  • Use consistent time periods: always calculate MRR on a monthly basis.
  • Segment customers by plan to get more detailed insights.
  • Update your numbers regularly to keep MRR accurate.
  • Consider churn rate to understand MRR changes.

Common Mistakes to Avoid

  • Including one-time fees in MRR.
  • Using annual revenue instead of monthly.
  • Forgetting to update customer count when customers churn.

Assumptions and limitations

  • Use the stated inputs and units.
  • Results are estimates for planning and education.
  • Check measurements and source data before making an important decision.