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MRR Calculator

Enter Customers on monthly plans, Average monthly plan price and Customers on quarterly plans plus 4 more inputs — every figure updates as you type. Nothing you type leaves your browser.

How do you calculate MRR?

Monthly Recurring Revenue is the monthly-normalised value of every active paid subscription: monthly plans at face value, quarterly plans divided by three, annual plans divided by twelve, less active discounts. This calculator normalises a mixed billing book into a single MRR figure, converts it to ARR, and shows the blended revenue per customer behind it.

MRR

$12,743

Normalised recurring revenue for one month.

ARR: $152,920MRR × 12 — a run rate, not a forecast.
Paying customers: 278Everyone contributing to the figure above.
Blended ARPU: $46MRR ÷ paying customers, across all billing terms.

Results are rounded for display; the calculation runs at full precision.

The maths

How MRR is calculated

The formula this calculator runs, written out so you can check it against your own model rather than trust a black box.

MRR = Σ (monthly-normalised subscription value) − active discounts

monthly-normalised value: Plan amount ÷ the number of months it covers. A quarterly plan is divided by 3, an annual plan by 12, a two-year deal by 24.
active discounts: The monthly value of live coupons. A 100% coupon removes the customer from MRR entirely.

Reading the result

What the number is telling you

Bands are directional, not verdicts. Stage, price point and contract length move every one of them, so treat these as a starting point for the conversation rather than a grade.

Under 8,300 MRR (about 100k ARR): Early. The number moves in visible steps with each customer, so growth rates are noisy and mostly meaningless month to month. Track absolute net new MRR rather than percentages, and watch whether new business is repeatable rather than whether the curve is smooth.
8,300 – 83,000 MRR (100k – 1M ARR): The band where definitions start to matter. Trials, discounts and delinquent accounts are now big enough to move the headline figure by several percent, and churn becomes measurable rather than anecdotal. Fix your definitions here and the historical series stays trustworthy.
83,000 – 417,000 MRR (1M – 5M ARR): Composition matters more than the total. Expansion, contraction and reactivation each become large enough to plan around, so segment MRR by plan, cohort and channel — the aggregate number now hides more than it reveals.
Over 417,000 MRR (5M+ ARR): The headline figure is a reporting output, not a management tool. Net revenue retention, quick ratio and cohort behaviour are what actually predict the next twelve months, and reconciliation against the billing system becomes a monthly discipline rather than an occasional check.

What this number is, and what it is not

MRR is a run rate, not cash. It answers one question: if nothing changed today, how much recurring revenue would this book produce next month? An annual contract billed in full this morning adds one twelfth of its value to MRR, not the whole invoice — the rest is deferred revenue, and it belongs on a cash or net-revenue view instead.

That distinction is where most spreadsheets go wrong. Add annual invoices to MRR at face value and every renewal month looks like a record month, followed by eleven months of apparent collapse. The shape is an artefact of billing dates, not of the business.

Normalising mixed billing terms

Divide each plan by the number of months it covers, then sum. A quarterly plan of 135 contributes 45. An annual contract of 490 contributes 40.83. Where a plan carries seats or quantities, multiply before you normalise, and add per-seat add-ons to the base plan rather than counting them as separate subscriptions.

What to leave out

Trials and free plans — no recurring revenue is committed yet.
One-off charges, setup fees and usage overages — real revenue, but not recurring. They belong in other revenue.
Customers on a 100% coupon — they pay nothing this month, so they contribute nothing.
Long-delinquent subscriptions — a subscription that has failed payment for more than your delinquency window is not revenue. Thirty days is the common default.

One thing to leave in: payment-processing fees. MRR is measured gross of fees. Netting them out quietly understates the top line and makes the figure impossible to reconcile against your billing provider.

From an estimate to a live figure

Averages hide the interesting part. A book with a long tail of small plans and three large contracts has the same average as a flat one, and behaves nothing like it. Bastle computes MRR from every individual subscription instead — normalising terms, applying your coupon and delinquency rules, and showing the customers and invoices behind each movement. Connect Stripe and the whole history backfills to your first customer. It is free while in beta, no card required.

Definition

Where MRR gets argued about

A calculator settles the arithmetic, not the definition — and the definition is where most disagreements about this number actually live. The glossary entry covers the conventions, the edge cases and how Bastle handles each one.

Read the MRR definition Browse the metric glossary

Related calculators

Numbers that move together

No subscription metric is meaningful on its own. These are the ones worth running next.

ARR Calculator

Annual Recurring Revenue is Monthly Recurring Revenue multiplied by twelve — a run rate describing what the current subscription book would produce over a year if nothing changed.

Learn more

ARPU Calculator

Average Revenue Per User is Monthly Recurring Revenue divided by the number of active paying customers.

Learn more

Churn Rate Calculator

Customer churn rate is the number of customers who cancelled during a period divided by the number active at the start of that period, expressed as a percentage.

Learn more

Net Revenue Retention Calculator

Net Revenue Retention measures what happened to the revenue of a fixed group of existing customers over a period: starting MRR plus expansion, less contraction and churn, divided by starting MRR.

Learn more

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Frequently asked questions

How do I calculate MRR for annual plans?

Divide the annual contract value by twelve and count that amount in every month the contract is active. A 1,200 annual plan contributes 100 of MRR each month, not 1,200 in the month it was billed. The cash you actually collected on the invoice date belongs on a net revenue or cash view, which is a separate report from MRR.

Should MRR include taxes and payment processing fees?

Exclude tax — it is never your revenue. Include the full subscription amount before processing fees: MRR is measured gross, and provider fees are reported separately. Deducting fees from MRR makes the figure impossible to reconcile against Stripe and understates the top line by roughly two to three percent depending on your payment mix.

Do trials count towards MRR?

No. A trialing customer has not committed any recurring revenue, so counting them inflates MRR and produces a fake churn spike whenever a cohort of trials expires. Count a customer from the moment their first successful payment lands. Stripe's own dashboard counts trialing subscriptions as active, which is one of the most common reasons a Stripe figure and a properly-calculated MRR figure disagree.

What is the difference between MRR and revenue?

MRR is a normalised run rate of committed recurring subscriptions. Revenue, in the accounting sense, is what you actually earned in a period including one-off charges, usage overages and setup fees, less refunds. The two figures should never match, and a good analytics tool shows both rather than blending them into one number.

How should discounts and coupons affect MRR?

Reduce MRR by the live value of the discount, because that is what the customer is actually paying. A customer on a permanent 20% coupon at 100 a month contributes 80. A customer on a 100% coupon contributes nothing and should be excluded from MRR and from active customer counts until the coupon expires — at which point they appear as expansion, not as a new customer.

How often should MRR be recalculated?

Continuously, with a fixed end-of-day snapshot for reporting. Subscriptions change at all hours, so a figure computed on demand and a figure quoted in a board deck will drift apart unless you snapshot on a consistent boundary. Bastle stores a daily snapshot in UTC and recalculates history whenever you change a definition, so a number quoted last quarter can still be reproduced.

Stop recalculating MRR by hand.

Connect Stripe and Bastle keeps MRR current — backfilled to your first customer, segmentable, and traceable to the invoices behind it. Free while in beta, no card required.

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