MRR and ARR Calculator
Monthly and annual recurring revenue from your subscriber mix, with the movement that produced it.
MRR is the normalised monthly value of every active subscription.
How the mrr and arr calculator works
MRR is the normalised monthly value of every active subscription. Annual plans are divided by twelve rather than counted in the month they are billed, which is the whole point: MRR is meant to describe the run rate, not the cash that happened to land.
ARR is simply MRR times twelve. It is not the revenue you will book this year — it is the annualised value of what you have today, which differs the moment anyone joins or leaves.
The movement rows matter more than the level. New, expansion, contraction and churn add to net new MRR, and a business growing on new while bleeding on churn is in a very different position from one growing on expansion.
Formula: MRR = Σ normalised monthly subscription value; ARR = MRR × 12
Worked examples
| Inputs | MRR | Note |
|---|---|---|
| 800 monthly at 49, 150 annual at 490 | £45,325.00 | MRR 45,325 |
| Monthly plans only | £39,200.00 | MRR 39,200 |
| Churn exceeding new business | £45,325.00 | net new is negative |
FAQFrequently asked questions
What is MRR?
Monthly recurring revenue — the normalised monthly value of every active subscription, with annual plans divided by twelve.
Why divide annual plans by twelve?
Because MRR describes the run rate, not the cash received. Counting a year's payment in one month would make the series meaningless.
Is ARR the revenue I will book this year?
No. It is today's MRR annualised — a snapshot, not a forecast.
Should one-off fees count?
No. Setup fees and professional services are not recurring, and including them overstates the run rate.
What is net new MRR?
New plus expansion minus contraction and churn. It is the number that shows whether the business is actually growing.
Where these figures come from
- Reichheld (2003), Harvard Business Review — The One Number You Need to Grow — the paper that introduced Net Promoter Score
- Financial Reporting Council — the UK accounting regulator
Last checked: September 2026. These are the industry-standard definitions; where companies commonly disagree, the page says so.