SaaS & retention
Monthly Recurring Revenue Calculator
Estimate normalized monthly recurring subscription revenue from paying customer count and monthly price per customer.
Use this for a single plan or a weighted-average monthly price. Use ARR to annualize an already established MRR total.
What the result means
MRR is a monthly-normalized recurring revenue run rate for the current customer base. It is not necessarily the cash collected or accounting revenue recognized this month.
The formula
Active paying customers * effective monthly price
Results are displayed to at most two decimal places. Calculations use the unrounded inputs.
A worked example
Put the formula to work
- Active paying customers (customers)
- 250
- Effective monthly price (currency per customer per month)
- 49
MRR (input currency per month): 12,250.00
With 250 active paying customers at an effective monthly price of 49, MRR is 12,250.
How to use this calculator
- Choose a subscription snapshot date and count active paying accounts.
- Normalize annual or quarterly recurring contract prices to one month.
- Use a customer-weighted average if several plans are included.
- Multiply customers by the effective monthly price, excluding one-time charges.
Why this number matters
Monthly normalization makes the recurring subscription base comparable even when customers pay on different billing schedules.
Input definitions
- Active paying customers (customers)
- Paying subscription accounts included in this recurring-revenue snapshot; exclude free accounts.
- Effective monthly price (currency per customer per month)
- Net recurring monthly price, or weighted average across plans; divide annual contract value by 12 before entry.
Assumptions and limitations
- A single price must represent the actual plan mix; an unweighted plan average is misleading.
- One-time setup fees, services, and pass-through taxes are excluded.
- Variable usage revenue requires a separate policy and is not forecast here.
Methodology
The default result and worked example use the same calculation functions as the interactive tool. The formula cannot verify the quality or scope of your source data.
Read our calculation methodology
Last updated .