What the SaaS MRR and ARR Calculator does
This calculator works out monthly recurring revenue (MRR) and annual run-rate (ARR) from your plans, prices and paying customers, then reconciles the month with an MRR bridge: starting MRR plus new, expansion and reactivation, minus contraction and churn, equals ending MRR. One-time fees are shown beside the result and never folded into it.
Everything is calculated in your browser. Plan prices and customer counts are not sent anywhere, and there is no share link, because the inputs are commercial data.
How to use it
- List each plan on its own line: name, the price billed each billing period, the billing period in months, the number of paying customers and any recurring discount. Paste straight from a spreadsheet if you have one.
- Enter one-time fees for the month (setup, onboarding, services). They are reported separately so you can see them without inflating MRR.
- Fill in the month's movements: starting MRR, new, expansion, reactivation, contraction and churned MRR.
- Check the reconciliation note. If the bridge does not end at the MRR your plans add up to, a movement is missing or a customer count is stale.
- Download the CSV of the working to keep with your board pack or finance close.
Reading the results
MRR is a normalised monthly figure, not cash received. A customer who paid 1,188 up front for a year contributes 99 a month for twelve months, regardless of when the money arrived.
ARR here is a run-rate: this month's MRR times twelve. It is not the revenue you will recognise in the next twelve months, which depends on churn, growth and timing.
The quick ratio compares MRR gained (new, expansion, reactivation) with MRR lost (contraction, churn). Above 1 the business grew this month; the further above, the less growth depends on replacing lost revenue.
Worked example: three plans and a reconciled month
A company has 120 customers on Starter at 29 a month (3,480), 40 on an annual Pro plan at 1,188 a year with a 10% recurring discount (1,188 x 0.9 / 12 = 89.10 each, 3,564 in total) and 10 on a quarterly Team plan at 447 a quarter (149 a month each, 1,490). MRR is 8,534 and ARR 102,408. ARPA is 8,534 / 170 = 50.20.
The month started at 8,000 MRR, added 700 new and 250 expansion, and lost 116 to downgrades and 300 to cancellations: 8,000 + 700 + 250 - 116 - 300 = 8,534, which matches the plans. Net new MRR is 534, growth 6.7% and the quick ratio (700 + 250) / (116 + 300) = 2.28. The 2,500 of setup fees billed that month stay out of MRR.
Formulas and scoring rules
- MRR per plan
plan MRR = price x (1 - discount / 100) / billing months x customersAnnual plans divide by 12, quarterly by 3.- ARR
ARR = MRR x 12A run-rate, not a forecast.- ARPA
ARPA = MRR / paying customers- MRR bridge
ending = starting + new + expansion + reactivation - contraction - churned- Net new MRR and growth
net new = ending - starting; growth = net new / starting- Quick ratio
(new + expansion + reactivation) / (contraction + churned)Infinite when nothing was lost.- Rounding
Nothing is rounded before display; amounts are shown to whole units or cents, percentages to 1 decimal.The CSV keeps 2 decimals for amounts and 4 for per-customer MRR.
What counts as MRR
Include revenue that will recur without a new sale: subscriptions, committed seats, recurring add-ons. Exclude setup and implementation fees, one-off professional services, hardware and usage overages that vary month to month, unless they are contractually committed.
Discounts that last the life of the contract reduce MRR. A free first month or a one-off coupon does not change the recurring price, so most teams record full MRR and treat the promotion as a cost of acquisition. Whatever you choose, apply it the same way every month so trends mean something.
Limitations: what the result does not prove
- It does not read your billing system. The result is only as accurate as the plan counts and movements you enter.
- ARR as MRR x 12 ignores seasonality, pending cancellations and contracted price changes; it is a snapshot, not a revenue forecast.
- Accounting revenue under IFRS 15 or ASC 606 follows performance obligations and can differ from MRR, especially for annual prepayments and bundled services.
- Currency conversion is not handled. Convert plans billed in other currencies at a consistent rate before entering them.
Privacy: where your data goes
Everything you paste, type or drop is processed in this browser tab. It is not uploaded, logged, stored or sent to analytics. Session recording and tag-manager scripts are switched off on this page.
Standards and sources
- IFRS 15 Revenue from Contracts with Customers (IFRS Foundation)
- SEC - Non-GAAP financial measures guidance
Frequently asked questions
How do I calculate MRR from annual subscriptions?
Divide the annual price, after any recurring discount, by 12 and multiply by the number of customers on that plan. A 1,200 annual plan contributes 100 of MRR per customer every month of the term, however it was invoiced.
Is ARR just MRR multiplied by 12?
For a subscription business measured on run-rate, yes: ARR is current MRR times twelve. Some companies report contracted ARR from signed annual contracts instead. Both are valid if the definition is stated; this tool uses the run-rate definition.
Should setup fees be included in MRR?
No. Setup, onboarding and services fees are one-time. Adding them makes a single month look like a permanent step up and overstates ARR by twelve times the fee. The calculator shows them separately so they are visible but not counted.
What is the difference between contraction and churned MRR?
Contraction is revenue lost from customers who stay but pay less, for example by downgrading or removing seats. Churned MRR is revenue lost from customers who cancel entirely. Both reduce MRR; separating them shows whether you have a pricing or a retention problem.
What is a good SaaS quick ratio?
A ratio of 4 is often quoted for fast-growing venture-backed companies, but it is a rule of thumb from investors rather than a standard. Anything above 1 means MRR grew; below 1 means losses outpaced gains that month.
Why does my MRR bridge not match my plan totals?
Usually because a movement was missed (a reactivation, a mid-month plan change), customer counts were taken on a different date, or a discount changed. The tool flags the gap so you can trace it rather than silently forcing the numbers to agree.
Last reviewed by the A2Z.Tools team against the sources listed above.
