Monthly recurring revenue & components. The MRR Calculator takes paying customers, average revenue per account per month, new mrr this month, expansion mrr, churned and contraction mrr and returns monthly recurring revenue plus net new mrr, mrr next month at this pace, annual run-rate. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the MRR Calculator works
MRR is the heartbeat of a subscription business. Its components (new, expansion, churn) explain the movement; the annual run-rate is MRR times 12.
Worked example
With the example values (paying customers of 300, average revenue per account per month of $200, new mrr this month of $5,000, expansion mrr of $2,000, churned and contraction mrr of $3,000), the monthly recurring revenue is $60,000.00; net new mrr $4,000.00, mrr next month at this pace $64,000.00, annual run-rate $720,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is monthly recurring revenue calculated?
MRR = customers × average revenue per account; net new MRR = new + expansion − churned.
Which figures do I need?
Paying customers, average revenue per account per month, new mrr this month, expansion mrr, churned and contraction mrr. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
