Subscription MRR Calculator
Find the monthly recurring revenue and annual recurring revenue of a subscription business, and the net figure after churn.
Recent
Formula
How the calculation works
The calculator multiplies the number of subscribers by the monthly price to give the monthly recurring revenue.
It multiplies that MRR by twelve to give the annual recurring revenue, which is the figure investors usually ask for.
The churned subscribers are then valued at the same monthly price and subtracted to give the net MRR that the business really keeps.
Common mistakes
- Counting one time setup fees and annual prepayments as MRR, even though they do not repeat every month.
- Ignoring churn, which makes the MRR look healthy while the net revenue actually stalls or falls month after month.
When to use it
- Subscription business owners use it to see the revenue base that repeats each month before planning fixed costs.
- Founders use the net figure to check whether growth in new subscribers is really outpacing the customers leaving each month.
Worked example
With 500 subscribers at 300 taka a month, the MRR is 150000 taka, the ARR is 1800000 taka, and with 20 churned subscribers the net MRR is 144000 taka.
Common questions
What is the difference between MRR and ARR?
MRR is the recurring revenue for one month, while ARR is that monthly figure multiplied by twelve, so they describe the same business at different time scales.
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