Free MRR Calculator

The MRR Formula

Monthly recurring revenue strips out the noise of one-time payments and uneven billing to show how much revenue reliably arrives each month. It is the number founders track weekly, the one investors ask for first, and the base from which every other SaaS metric (growth rate, churn, LTV) is derived.

What stays out of MRR: one-time setup fees, lifetime deals, and consulting revenue. Mixing them in is the most common reporting mistake and the first thing investors catch.

A Worked Example With Mixed Plans

• 80 customers on a $29/month plan = $2,320
• 15 customers on a $99/month plan = $1,485
• 5 annual contracts at $1,188/year = 5 x $99 = $495

Total: $4,300 MRR, or $51,600 ARR. The 12-month projection in the calculator shows the power of compounding: at 10% monthly growth MRR triples in a year, at 20% it grows almost 9x. It also assumes the growth rate holds, which requires acquisition channels that scale.

Track the four MRR movements separately (new, expansion, contraction, churned) and report net new MRR monthly. A flat MRR line can hide a healthy business gaining customers while bleeding an equal amount to churn - the components tell you which problem to fix.

To keep the growth input realistic, combine paid channels with compounding organic ones: our startup SEO guide and directory submission guide cover the playbook most bootstrapped SaaS companies use to grow MRR without growing ad spend.