SaaS Metrics

MRR & ARR Calculator

Calculate Monthly and Annual Recurring Revenue from your plan mix.

Plans

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Monthly Recurring Revenue (MRR)

$4,677

Sum of all subscriptions normalized to monthly.

Annual Recurring Revenue (ARR)

$56,120

MRR × 12. Standard SaaS reporting metric.

About this metric

Monthly Recurring Revenue (MRR) is the sum of all subscription revenue normalized to a monthly basis. Annual Recurring Revenue (ARR) is MRR × 12. These are the lifeblood metrics of any SaaS business — they smooth out one-time charges and give you a clear view of recurring revenue.

Formula

MRR = Sum of (Subscribers × Monthly Plan Price)

For annual plans, divide the annual price by 12 to get the monthly contribution. Exclude one-time fees, setup charges, and non-recurring revenue. ARR = MRR × 12.

Benchmarks

Healthy growth (early stage)

15-20% MoM

Strong growth (Series A+)

8-15% MoM

Net new MRR target

Track weekly

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FAQ

Should I include annual plans in MRR?

Yes. Convert them to monthly equivalents (annual price ÷ 12). This normalizes your revenue view across plan types and prevents big spikes from annual signups skewing the picture.

What is the difference between MRR and revenue?

MRR only counts recurring subscription revenue. It excludes one-time charges, professional services, and refunds. Revenue (GAAP) includes everything earned in a period.

How do I calculate Net New MRR?

Net New MRR = New MRR (from new customers) + Expansion MRR (upgrades) − Churned MRR (cancellations) − Contraction MRR (downgrades). It tells you whether you are growing.

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