MRR and ARR calculator

How to use the MRR and ARR calculator

1. Type a currency label such as USD or PLN if you want amounts to carry one. It is only text, so nothing is converted and mixing currencies across plans is your responsibility.
2. Add one row per plan. Enter the plan name, the price customers pay per billing period, the billing period and the number of paying customers on that plan. Use the Add plan button for more rows and Remove to delete one.
3. Put single payments such as setup fees in the one-time fees field. They are shown on their own line and never enter MRR or ARR.
4. Read MRR, ARR and the share of each plan. Optionally enter a target MRR and a monthly growth rate to see how many months the target takes at that rate.
5. Press Copy summary to put the result on your clipboard as plain text for a note, an update to your team or an investor email you write yourself.

Formulas and assumptions

For each plan, the monthly equivalent price is the price itself for a monthly plan, the price divided by 3 for a quarterly plan and the price divided by 12 for a yearly plan. Plan MRR is the number of customers times that monthly equivalent. Total MRR is the sum over all plans. ARR is total MRR times 12.

The share of a plan is its MRR divided by total MRR, shown with one decimal place, so the shares can differ from 100 percent by a rounding step. Amounts are calculated exactly and rounded to two decimals only for display. Prices accept at most two decimal places.

The calculator counts every customer you enter at the full price you enter. Discounts, free trials, free users, refunds, taxes and customers who have already cancelled are not modeled. Decide how your own business treats them and enter the resulting average price or customer count. The definitions of MRR and ARR used here are the simple ones above. Other companies may define them differently, so state your definition when you share a figure.

Worked example with made up plans

These plans are fictional and exist only to show the arithmetic. Starter costs 19 per month with 120 customers, which gives 2,280. Pro costs 49 per month with 45 customers, which gives 2,205. Team yearly costs 468 per year with 10 customers, which is 39 per month each and 390 in total.

MRR is 2,280 plus 2,205 plus 390, which is 4,875. ARR is 4,875 times 12, which is 58,500. Starter is 46.8 percent of MRR, Pro is 45.2 percent and Team yearly is 8.0 percent. A setup fee of 1,500 paid once is shown separately and changes neither figure.

For the projection, suppose the target is 6,000 and the assumed growth is 10 percent per month. The ratio 6,000 / 4,875 is about 1.231, its natural logarithm is about 0.2076 and ln 1.1 is about 0.0953. Dividing gives about 2.18, which rounds up to 3 months. After 2 months the same growth would give about 5,899, still short of 6,000.

Practical tips

Work from your billing records rather than from memory, and count paying customers on the day you calculate. Keep the date next to the result when you copy it, because MRR changes whenever someone joins, upgrades or leaves.

Treat the projection as arithmetic, not a prediction. Try several growth rates to see how sensitive the answer is. A small change in the rate can move the result by many months, and growth that is steady in a spreadsheet is rarely steady in practice. Nothing here is financial advice.

If you track churn and acquisition cost, pair this with the LTV, CAC and churn calculator. When you are preparing to share your product, the product launch checklist covers the rest, and the launch announcement generator helps you write the post.

Frequently asked questions