SaaS MRR/ARR Calculator
This SaaS MRR/ARR calculator finds your monthly and annual recurring revenue from your customer count and average revenue per customer, and shows how much churn is quietly eating into your growth. Enter your numbers to see the headline metrics investors and operators track most.
Your current active subscriber count.
Total monthly revenue divided by number of customers.
The percentage of customers who cancel each month.
Monthly Recurring Revenue (MRR)
$19,750
How to use this saas mrr/arr calculator
- 1Number of paying customers: your current active subscriber count.
- 2Average revenue per customer (monthly): total monthly recurring revenue divided by customer count — if plans vary in price, this is the blended average.
- 3Monthly churn rate: the percentage of customers who cancel each month — track this from your own billing data for an accurate figure.
Understanding your results
MRR is the core SaaS metric — predictable monthly revenue from active subscriptions. ARR is simply MRR annualized, commonly used for higher-level reporting and valuation multiples. MRR lost to churn shows the revenue headwind you need to overcome with new sales just to stay flat, before any actual growth.
The formula
MRR = Customers × Average revenue per customer · ARR = MRR × 12MRR is a simple multiplication of your active customer count by the average amount each pays per month. ARR annualizes that figure by multiplying by 12 — a useful simplification, though it doesn't account for expected churn or growth over the coming year, just a snapshot extrapolation of today's MRR.
A worked example
250 customers paying an average of $79/month gives an MRR of $19,750, or $237,000 ARR. At 3% monthly churn, roughly $593 of that MRR is at risk of disappearing next month from cancellations alone — revenue that needs to be replaced by new sales just to hold steady.
Notes for the UK, US and India
MRR and ARR are 'run-rate' metrics — snapshots of current recurring revenue, not guaranteed future revenue, since new sales, expansion revenue (upsells) and churn all move the number continuously. Investors typically care more about net revenue retention (growth from existing customers minus churn) than the raw MRR figure alone.
Frequently asked questions
Is ARR just MRR times 12?+
As a simple calculation, yes — but many companies report a more nuanced ARR that accounts for annual contracts, expected renewals, and other adjustments. This calculator shows the straightforward run-rate version.
What's a healthy churn rate?+
It varies significantly by market segment — SMB-focused SaaS often sees 3-7% monthly churn, while enterprise SaaS with longer contracts often sees under 1% monthly churn. Compare against your specific segment's benchmarks rather than a universal number.
Does this account for new customer growth?+
No — this is a snapshot of current MRR/ARR and the churn risk against it. Net new MRR (growth) requires tracking new sales and expansion revenue separately against the churn figure shown here.
Related calculators
Related articles
Business Margin Explained: Gross vs. Net Profit, Formulas, and What It All Actually Means
Business Finance
What Is Earning Margin? A Plain-English Guide to Profit
Business Finance
What Is Profit Margin? The Plain-English Guide for Business Owners
Business Finance
Product Margin: How to Calculate It and Why Your Pricing Might Be Leaking Profit
Business Finance