# MRR Calculator

> Calculate MRR, ARR and ARPU from your plans, annual billing mix and churn, then see net new MRR and a 12-month projection as a chart and a table. Free.

Use it free at https://swipetolaunch.com/tools/mrr-calculator

## How to use it

1. **Add your plans.** Customers and monthly price per plan, plus the share on annual billing and the annual discount.
2. **Add your rates.** Monthly churn, new customers per month and expansion from upgrades.
3. **Read the totals.** MRR, ARR, ARPU and next month's net new MRR.
4. **Check the projection.** Twelve months ahead as a bar chart and a table, with a CSV download.

## What MRR measures

Monthly recurring revenue is the subscription revenue you can expect every month, normalised to a monthly amount. It leaves out one-off fees and setup charges, and it spreads annual plans across 12 months. A customer paying $480 a year counts as $40 of MRR, not $480 in the month they paid.

## How this calculator counts it

- **Plan MRR** = customers × monthly price, with the annual share discounted. If 40% of a $49 plan pays annually at 17% off, that plan's effective price is about $45.67.
- **ARR** = MRR × 12.
- **ARPU** = MRR ÷ customers.
- **Net new MRR** = new MRR + expansion MRR − churned MRR. This is the number that tells you whether you are growing.

The projection prices new customers at today's ARPU and applies churn and expansion to the previous month's MRR.

## Reading the projection

Growth with steady signups and steady churn always flattens out. When the customers you lose each month equal the ones you gain, you have hit a ceiling. The calculator tells you where it is: new customers per month ÷ churn rate. At 25 new customers a month and 3% churn, you level off near 833 customers. To raise the ceiling, either add more customers each month or keep more of them.

## Annual plans and cash

Annual billing does not change MRR, but it brings cash in up front. The calculator shows roughly how much annual plans collect in advance, which matters for runway even though MRR spreads it out.

## Where the numbers come from

Use real counts from your billing system where you can. For a pre-launch plan, start with the [SaaS pricing calculator](/tools/saas-pricing-calculator) to see how many customers a target needs, then model the path here. Everything runs in your browser and nothing is saved or sent.

## What you get

- MRR, ARR, ARPU and net new MRR
- Monthly and annual billing mix with discounts
- Churn, new customers and expansion
- 12-month projection as a chart and a table
- CSV download of the projection

## Questions

### How do you calculate MRR?

Add up the monthly subscription revenue from every paying customer. For annual plans, divide the annual price by 12. Leave out one-time fees. In this calculator that is customers times effective monthly price, summed across plans.

### What is the difference between MRR and ARR?

ARR is annual recurring revenue, which is MRR times 12. They measure the same thing at different scales; early products usually talk in MRR and larger ones in ARR.

### What is net new MRR?

The change in MRR over a month: revenue from new customers plus expansion from upgrades, minus revenue lost to cancellations and downgrades. Positive net new MRR means you are growing.

### Do annual plans count fully toward MRR in the month paid?

No. An annual payment is spread across 12 months, so a $1,200 yearly plan adds $100 of MRR. The cash arrives up front, which this calculator shows separately.