Ecommerce KPI Tool
Monthly Recurring Revenue Calculator
Track monthly recurring revenue and annual run-rate from subscription activity.
Formula: MRR = Active Subscribers × Average Monthly Revenue + New MRR + Expansion MRR - Churn MRR | ARR = MRR × 12
Plan Mode
Free mode is active while advanced subscription features are paused.
Decision snapshot
Monthly Recurring Revenue Calculator
Track monthly recurring revenue and annual run-rate from subscription activity.
Formula
MRR = Active Subscribers × Average Monthly Revenue + New MRR + Expansion MRR - Churn MRR | ARR = MRR × 12
MRR
$7,650.00
ARR
$91,800.00
Net new MRR
$1,650.00
Activity profile
A simple visual cue for the current decision path.
Recurring revenue
Separate recurring run-rate from one-off spikes
MRR and ARR are more useful when they are treated as planning inputs rather than vanity numbers. The right interpretation combines recurring base, churn, expansion, and annual contracts.
Reference points
Methodology
- Start from the active subscriber base and average monthly revenue per account.
- Add new and expansion MRR, then subtract churned MRR so the run-rate reflects current momentum.
- Translate the result into ARR only after monthly churn and upgrades are understood.
Practical examples
- 250 subscribers at $24 per month creates $6,000 base MRR before growth adjustments.
- New MRR and expansion MRR can mask churn for a while, but the net trend still matters.
- Annual contracts should be annualized to keep the monthly view comparable across periods.
Common mistakes to avoid
- Do not confuse booked revenue with recurring revenue.
- Do not treat ARR as a substitute for churn-aware monthly planning.
- Do not rely on a single blended average if your customer types behave very differently.
Inputs
Enter your current operating numbers to get a quick decision-ready snapshot.
Scenario workspace
Save scenarios and compare outcomes. Local autosave stays on by default for quick planning.
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No saved scenarios yet. Save your current assumptions to compare results over time.
| Scenario | Plan | MRR | ARR | Net new MRR |
|---|---|---|---|---|
| Current session | Free | $7,650.00 | $91,800.00 | $1,650.00 |
When to use this tool
- When you need a clean subscription run-rate before board, investor, or planning discussions.
- After a pricing or churn change to see how much recurring revenue really moved.
- Before forecasting ARR so the annual number reflects current monthly momentum.
FAQ
How is MRR different from ARR?
MRR is the monthly recurring run-rate. ARR is the annualized version, usually MRR multiplied by 12.
Why does churn matter so much?
Churn directly reduces the recurring base, which can hide weak growth even if new sales look healthy.
Should annual contracts be included?
Yes, if you want a better run-rate estimate. Convert annual contracts into monthly equivalent revenue so the model stays comparable.
Reference links
These are the external references we use when the calculation needs a wider industry or platform context.