Free SaaS tool

MRR calculator for SaaS

MRR, monthly recurring revenue, is the subscription revenue you can expect every month: each plan's monthly price times its paying customers, with annual plans divided by 12. Add your plans below for MRR and ARR, then use the second calculator to see why MRR moved since last month. Nothing is stored.

MRR
€2,585
per month
ARR
€31,020
MRR x 12
Growth
+10.0%

This snapshot goes stale the day a customer upgrades or cancels. Plainhub keeps MRR current as you record customers, next to your burn and runway.

Keep MRR live

Worked example: three plans, one annual deal

The calculator opens with a small SaaS company that sells two monthly plans and has signed two annual contracts:

Starter   29 x 24          =    696
Pro       99 x 11          =  1,089
Annual    4,800 / 12 x 2   =    800
MRR                        =  2,585
ARR       2,585 x 12       = 31,020

The annual deals are the part people get wrong. Both customers paid €4,800 up front, so the bank received €9,600 in one month. MRR still counts them at €400 each, every month, because MRR measures what repeats, not when cash arrives. For cash, that up-front payment matters a lot; for MRR, it does not. The calculator also has last month's MRR filled in (€2,350), which gives the growth rate: +10.0 percent.

Why MRR moved: the four movements

A growth rate tells you that MRR changed, not why. Split the change into four parts and it becomes something you can act on:

MRR now
€2,585
Net new MRR
€235
MRR growth
+10.0%
MRR lost
4.5%
MRR last month       2,350
+ new MRR              270
+ expansion MRR         70
- contraction MRR       20
- churned MRR           85
= MRR now            2,585

net new MRR = 270 + 70 - 20 - 85
            = 235 (+10.0%)
MRR lost    = (20 + 85) / 2,350
            = 4.5% of last month

New MRR is new customers. The expansion is one Starter customer moving to Pro (99 minus 29 is 70), the contraction a discount given at renewal, and churn the customers who cancelled. Read it like this. New and expansion MRR show whether selling and upselling work. Contraction and churn show whether customers stay. In the example, €105 of the €2,350 the company started with was lost in one month. Growth still looks healthy at 10 percent, but that loss has to be replaced every month before any growth counts. If MRR lost creeps up while new MRR stays flat, growth will stall even though nothing looks broken yet. That is the signal to talk to the customers who left, before spending more on getting new ones. The churn calculator goes deeper on that side.

What counts as MRR, and what does not

  • Counts: active paid subscriptions at the price actually paid, annual and quarterly plans converted to a monthly value, and recurring add-ons.
  • Does not count: setup fees, one-off projects, free trials, and deals that are signed but not yet paying.
  • Use care with: usage-based billing. Count the part that reliably repeats, or use a three-month average, and say which one you use.

For the full definition and how investors read it, see what is MRR. If you already know your MRR and want ARR from a mix of monthly and annual contracts, use the ARR calculator.

MRR questions founders ask

How do I calculate MRR?

For each plan, multiply the monthly price by the number of paying customers on it, then add the plans together. Annual plans count at one twelfth of the yearly price, quarterly plans at one third. Setup fees and one-off projects are left out.

How is ARR calculated from MRR?

ARR = MRR x 12. With €2,585 of MRR, ARR is €31,020. It is a run rate, not a forecast: it assumes nothing changes for twelve months.

What is net new MRR?

New MRR plus expansion MRR, minus contraction MRR and churned MRR. It is the change in MRR from one month to the next, broken into the reasons for the change. In the example on this page it is €235.

Do free trials count toward MRR?

No. A trial is not revenue until the customer pays. Count them from the first paid month, at the price they actually pay.

How do discounts affect MRR?

Use the price the customer really pays. A €99 plan sold at 20 percent off is €79.20 of MRR. When the discount ends, the extra €19.80 is expansion MRR.

How Plainhub keeps MRR current

In Plainhub you add customers with their monthly revenue and a status: active, expected, at risk or lost. MRR only counts active, recurring customers, plus any recurring income you record, so a signed deal that has not started paying does not inflate it. Expected revenue shows separately as pipeline, and revenue at risk shows as its own number.

Because MRR sits in the same model as your costs, every change flows straight into net burn and runway. If one customer brings in 30 percent or more of revenue, Plainhub warns you and shows what your net burn would be without them. When a payment you expected is late, it shows up in your alerts.

Keep MRR current without the spreadsheet

This snapshot goes stale the day a customer upgrades or cancels. In Plainhub, MRR, burn and runway update together as you record what happens. No Stripe or bank connection needed.