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MRR & ARR calculator

Compute monthly (MRR) and annual (ARR) recurring revenue from customers and ARPU.

The MRR & ARR calculator turns Customers, Revenue per customer / month, Monthly customer churn (%) into MRR, ARR, MRR lost per month to churn, Average customer lifetime (months), Lifetime value per customer, instantly and for free. For instance, with Customers = 200, Revenue per customer / month = $30.00 and Monthly customer churn (%) = 2 it returns MRR = $6,000.00, ARR = $72,000.00 and MRR lost per month to churn = $120.00.

How to use it

  1. Enter your values: Customers, Revenue per customer / month, Monthly customer churn (%).
  2. Read the result instantly: MRR, ARR, MRR lost per month to churn, Average customer lifetime (months), Lifetime value per customer.

Frequently asked questions

How does the MRR & ARR calculator work?

It takes Customers, Revenue per customer / month and Monthly customer churn (%) and derives MRR, ARR, MRR lost per month to churn, Average customer lifetime (months) and Lifetime value per customer from them. The calculation is live as you type, so the result updates on every change.

Which values does the calculator ask for?

3 values: Customers, Revenue per customer / month ($) and Monthly customer churn (%). Nothing else is required — no account, no file upload.

What does a typical calculation look like?

With Customers = 200, Revenue per customer / month = $30.00 and Monthly customer churn (%) = 2, the calculator returns MRR = $6,000.00, ARR = $72,000.00 and MRR lost per month to churn = $120.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

How much does the result change with different inputs?

It moves a lot. Using Customers = 400, Revenue per customer / month = $60.00 and Monthly customer churn (%) = 4 instead, MRR goes from $6,000.00 to $24,000.00 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Customers = 100, Revenue per customer / month = $15.00 and Monthly customer churn (%) = 1, MRR comes out at $1,500.00. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Reporting to an investor or a board: what recurring revenue really is this month, what churn is costing, and how long it takes to earn back an acquisition.

What is the most common mistake?

Counting annual contracts at their full value in the month they are signed. MRR is the monthly-equivalent figure; booking a year of revenue in one month makes growth look like a step change that then reverses.

What is the difference between the MRR & ARR calculator and the CAC payback period calculator?

This one returns MRR and ARR; the CAC payback period calculator returns Payback period (months). That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Customer lifetime value (CLV) calculator is the closest one after this: What a customer is worth over the whole relationship: margin per period ÷ (1 + discount − retention), which also tells you the average lifespan 1/(1 − retention). Higher retention and margin stretch it; the discount rate reins it back to today's money.

What else is worth having open alongside it?

LTV:CAC ratio calculator and LTV calculator — they come up in the same task often enough to be worth a second tab.

Further reading

All guides
ExplainerMRR and the Arithmetic of Recurring RevenueMonthly recurring revenue is a normalised run rate, not revenue earned. Normalise it wrong and every downstream number is wrong. Here is the movement analysis that explains the figure, and why net revenue retention decides whether growth compounds.ExplainerWhat Is the Rule of 40? Six Ways to Score Exactly 40Growth rate plus profit margin should clear 40. But 60 percent growth at a minus 20 percent margin scores the same as 10 percent growth at a 30 percent margin — and on $10M of revenue those are opposite companies.ExplainerARPU and the Averages That Hide Your BusinessAverage revenue per user is a mean over a distribution with no middle, divided by a denominator nobody defines. Here is the same month of revenue read five ways, and two opposite businesses landing on exactly the same ARPU.ExplainerWhat LTV:CAC Ratio Should You Target? The Churn Estimate Decides ItEveryone quotes 3:1 and nobody states their churn assumption. With $100 ARPU and an 80 percent gross margin, moving monthly churn from 2 to 3 percent drops the ratio from 4.0:1 to 2.67:1 — a pass turned into a fail by one percentage point.ExplainerWhat Is Customer Churn Rate? Formula and How to Reduce ItCustomer churn rate measures how fast you lose customers. Learn the formula, why it caps growth and shortens lifetime value, and how to reduce it.ExplainerWhat Is Customer Lifetime Value (LTV)? Formula and UsesCustomer lifetime value estimates the total worth of a customer over the whole relationship. Learn the formula, why margin matters, and how to use it.