Helpful Toolbox

MRR & ARR Calculator

Type in your subscriber count and average price, and watch your monthly and annual recurring revenue — plus the true cost of churn — appear instantly.

📖 How it works & FAQ

What MRR & ARR actually measure

Monthly Recurring Revenue (MRR) is the predictable subscription income you collect every month: active subscribers multiplied by the average monthly price. Annual Recurring Revenue (ARR) is simply MRR × 12 — the annualized run rate that founders, investors, and acquirers use to compare SaaS businesses of different sizes. Neither number includes one-time fees, setup charges, or usage overages; recurring means recurring. All figures here are estimates only, not financial, tax, insurance, or legal advice.

Why churn compounds harder than it looks

Churn feels small month to month and turns brutal over a year because it compounds. This calculator applies (1 − churn)12 to your current MRR: at 3% monthly churn you keep about 69% of your revenue after twelve months, and at 7% you keep barely 42%. The projection deliberately assumes no new sales, upgrades, or price changes — it isolates the leak so you can see exactly how much new growth you need just to stand still. If the "Lost to churn" card makes you wince, retention work will usually pay back faster than more ads.

How to use it

  1. Enter your current number of active paying subscribers.
  2. Enter the average monthly price per subscriber. For annual plans, divide the yearly price by 12 first.
  3. Optionally add your monthly churn rate to project MRR twelve months out.
  4. Read the result cards — everything recalculates live as you type, and nothing ever leaves your browser.

FAQ

What counts as a good monthly churn rate?
Rough benchmarks: under 2% monthly is strong for SMB SaaS, 3-5% is common for early-stage products, and enterprise SaaS often targets under 1%. Consumer subscriptions typically run higher.
How do I handle annual or mixed plans?
Normalize everything to monthly. A $240/year customer contributes $20 to MRR. Blend annual and monthly customers into one average price, or run the calculator once per plan and add the MRRs.
Is ARR the same as annual revenue?
No. ARR is a forward-looking run rate — this month's recurring revenue annualized. Actual annual revenue also reflects growth, churn, one-time fees, and refunds over the year.
Does the 12-month projection include new customers?
No, and that's intentional. It shows what happens to today's base if you stopped selling — the clearest way to see how much churn is quietly taxing your growth.