ARR and MRR Calculator
MRR is your monthly recurring revenue and ARR is MRR × 12. Annual plans count as one-twelfth of their price each month. Enter your plans to see both, then see what changed this month.
By Suren, Founder & Growth Strategist at Gufy · Last updated
The formulas
| Measure | Formula |
|---|---|
| MRR | Monthly plans × monthly price + annual plan value ÷ 12 |
| ARR | MRR × 12 |
| Net new MRR | New + expansion − churned − contraction |
| MRR growth | Net new MRR ÷ MRR at the start of the month |
Worked example: 40 customers pay $99 a month ($3,960) and annual contracts are worth $24,000 a year ($2,000 a month). MRR is $5,960 and ARR is $71,520.
What to leave out
- One-off fees: setup, onboarding packages, consulting and hardware.
- Free trials: a trial is not recurring revenue until the customer pays.
- List prices: use what customers actually pay after discounts.
- Upfront cash: an annual plan paid in full is one-twelfth of its value in each month’s MRR, not the whole amount in the month it was paid.
Usage-based charges are often reported separately from subscription MRR, because they move from month to month. Whatever you choose, apply it the same way every month so the trend means something.
What the movement tells you
Net new MRR is more useful than the total. Growth from new customers with high churn points atonboarding and retention; low churn with little new MRR points at acquisition. To see what each new customer costs, use the CAC and payback calculator.
Common questions
What is the difference between ARR and MRR?
MRR is the recurring revenue you can expect each month; ARR is the same figure for a year, which for most startups is simply MRR × 12. Monthly-plan businesses tend to report MRR; businesses selling annual contracts tend to report ARR.
Does ARR include one-time fees?
No. Setup fees, implementation, consulting and other one-off charges are not recurring, so they stay out of ARR and MRR even though they are revenue.
How do annual plans count in MRR?
Divide the annual price by 12. A customer who pays $1,200 upfront for a year adds $100 to MRR each month, even though all the cash arrived on day one.
What is net new MRR?
Net new MRR is the change in MRR over a month: new MRR from new customers, plus expansion from upgrades, minus MRR lost to cancellations and downgrades. It shows whether recurring revenue is growing, and why.
Where Gufy fits
Gufy works on every line of that movement: new MRR through acquisition, expansion and churn through onboarding andlifecycle messaging, and the tracking that shows which is moving. For Syntrico, a B2B SaaS product, that work took annual recurring revenue from zero to more than A$650,000 in six months.