What this calculator measures
MRR — monthly recurring revenue — is the normalised monthly value of every active subscription, and the single number most SaaS decisions hang off. This calculator computes it the simple way (customers × average revenue per customer), annualises it to ARR, and, if you give it last month’s figure, works out your month-on-month growth rate and what that pace compounds to over a year.
The formulas
ARR = MRR × 12
Growth rate = (this month’s MRR − last month’s MRR) ÷ last month’s MRR
Implied annual growth = (1 + monthly growth)12 − 1
The last line trips people up. Monthly growth compounds, so 8% a month is not 96% a year — it is roughly 152%. Conversely, a company targeting “3× in 12 months” needs about 9.6% monthly, not 17%.
Worked example
A B2B tool has 240 paying customers averaging $99/month. MRR = 240 × $99 = $23,760, so ARR = $285,120. Last month MRR was $22,000, so growth = ($23,760 − $22,000) ÷ $22,000 = 8.0% month-on-month — a pace that compounds to roughly 152% a year if held.
What good looks like
Growth expectations scale down as revenue scales up. As broad 2025/26 ranges: under $1M ARR, strong companies grow 10–20% monthly; between $1M and $10M ARR, 5–10% monthly (roughly 80–200% annually) is upper-quartile; beyond $10M ARR, 40–80% annual growth is very good and the median public SaaS grows nearer 20%. Our benchmarks page breaks these ranges down by ARR band with sourcing notes.
Common mistakes
- Counting non-recurring revenue. Setup fees, one-off services and single overage charges are not MRR. If it will not repeat next month at the same value, it stays out.
- Using collected cash instead of normalised value. An annual prepayment of $12,000 is $1,000 of MRR in every month it covers — not $12,000 of MRR in the month it lands.
- Quoting the headline without the bridge. MRR moving from $22,000 to $23,760 could be $1,760 of clean new business, or $6,000 new against $4,240 churned. Track the components — our quick ratio calculator scores exactly that.
- Multiplying monthly growth by 12. Growth compounds; use the annualisation formula above.
FAQ
Should one-off fees be included in MRR?
No. MRR counts only revenue that recurs at the same value next month. Setup fees, one-time services and single usage overages are excluded — if you include them, every downstream metric built on MRR (growth rate, NRR, quick ratio) is contaminated.
How do annual plans convert to MRR?
Divide the annual contract value by twelve. A customer paying $1,188 per year contributes $99 of MRR, regardless of when the cash was collected. MRR normalises billing frequency out of the picture.
Is ARR just MRR times twelve?
By convention, yes: ARR = MRR × 12. It is a point-in-time snapshot of annualised run rate, not the revenue you booked over the past year. Companies with mostly annual contracts sometimes sum contract values directly instead — the result should agree if definitions are clean.