Free Tool
SaaS MRR Calculator
MRR is not “customers times price” — it is customers times price, plus the upgrades, minus the downgrades and the churned revenue. This calculator builds it properly.
Planning estimate, not financial advice. All figures on this page are estimates or scenarios for planning purposes only, built from the numbers you enter. They are not financial, tax or legal advice, and no earnings are promised. Read the full financial disclaimer.
What this tool does
Enter the paying customers, the average revenue per user, the expansion MRR from upgrades, the contraction MRR from downgrades and the churned MRR from cancellations. The calculator returns the MRR, the net new MRR for the month, the ARR run rate and a simple twelve-month projection at the current net new pace.
Net new MRR is the number that decides whether a subscription business grows. A business that adds 2,000 of new MRR and loses 1,800 to churn and downgrades has grown by 200 — and the runway, the hiring plan and the valuation all follow the 200, not the 2,000.
Try it
Waiting. Enter your customers, ARPU and the monthly movements, then press Calculate.
How it works
Base MRR is paying customers multiplied by ARPU. Net new MRR is expansion minus contraction minus churned revenue for the month. MRR is the base plus the net new figure. ARR is MRR times twelve, and the twelve-month projection is the current MRR plus eleven more months at the same net new pace.
The projection is a straight line, not a forecast. Churn rises as the customer base ages, and expansion slows — the projection shows the pace, not the future.
Assumptions and limitations
MRR is a snapshot with a direction attached. This tool shows both.
- ARPU is the average revenue per paying user per month. Free users do not count — they pay nothing, so they add nothing to MRR.
- Expansion, contraction and churned MRR are monthly figures from your own billing records. Monthly figures, not annual ones, and not guesses.
- The projection assumes the net new pace holds for eleven more months. It will not — use it to size the direction, not to promise a number.
- ARR is MRR times twelve. It is a run rate, not contracted revenue: a customer can still cancel next month.
Worked example
Example (illustrative inputs, not a real product). 120 customers at 29 ARPU, 300 expansion, 100 contraction, 200 churned:
| Item | Figure |
|---|---|
| Base MRR (120 × 29) | 3,480.00 |
| Net new MRR (300 − 100 − 200) | 0.00 |
| MRR | 3,480.00 |
| ARR run rate | 41,760.00 |
Frequently asked questions
What is the difference between MRR and revenue?
MRR is the recurring revenue run rate for one month. Revenue is what was actually collected, which includes one-off payments, refunds and late payments. MRR is the pace; revenue is the history.
Why is net new MRR the important number?
Because it is the growth. New MRR alone flatters a business that is losing almost as much to churn and downgrades. Net new — expansion minus contraction minus churned — is the real monthly change.
What is ARPU?
Average revenue per user per month: MRR divided by paying customers. It moves when customers upgrade, downgrade or change plans, and it is the lever expansion works on.
Is the twelve-month projection a forecast?
No. It is a straight line at the current net new pace. Churn and expansion both change as the base grows, so treat the projection as a direction check, not a promise.