How to Calculate MRR (Monthly Recurring Revenue): Formula, Examples & Free Calculator

The MRR formula

MRR = Number of paying customers x Average Revenue Per User (ARPU). For example, 200 customers at $30/month = $6,000 MRR. This is your baseline — the revenue you can count on next month.

For more precision, sum the actual monthly value of each active subscription rather than using averages. This accounts for different plan tiers and discounts.

• New MRR: revenue from new customers acquired this month
• Expansion MRR: revenue increase from upgrades and add-ons
• Churned MRR: revenue lost from cancellations
• Net New MRR: New MRR + Expansion MRR - Churned MRR

Why MRR matters

MRR is the foundation of SaaS valuation. Most SaaS businesses are valued at 3-10x annual recurring revenue (ARR = MRR x 12). Investors, acquirers, and the TrustMRR benchmarks all reference MRR as the primary health metric.

Tracking MRR monthly shows you whether your business is growing, plateauing, or declining — before other metrics reveal the trend.

Using the BigIdeasDB MRR Calculator

Navigate to Free Tools > MRR Calculator. Enter your subscription data and the calculator shows your total MRR, growth rate, net new MRR, and component breakdown with charts.

The calculator is free — no login required. Use it alongside TrustMRR benchmarks to see how your MRR compares to similar products in your market.

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