MRR / ARR Calculator
Calculate Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) for a subscription business. Includes simple growth projections.
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About MRR / ARR Calculator
MRR vs revenue
MRR only counts recurring revenue from subscriptions. One-time fees, setup charges, professional services don’t count. The "recurring" part makes it a forward-looking metric — implied revenue if nothing changes.
Net growth math
Net = new MRR + expansion MRR (upgrades) − churned MRR (cancellations) − contraction MRR (downgrades). Positive net = growing. The biggest mistake is calculating gross new growth and forgetting churn drag.
Rule of 40
For SaaS: growth rate + profit margin should sum to 40%+. A 30% grower with 10% margin is at 40 — healthy. 60% grower at -10% margin is at 50, still healthy. Below 40 raises sustainability concerns.