MRR and ARR Calculator
List each plan with its price and number of customers, whatever the billing period. You get MRR, ARR and the mix. Add last month movement for net revenue retention.
How the month moved
Worked examples
Two plans
100 customers at £20 a month, 40 customers at £240 a year
MRR £2,800, ARR £33,600
Monthly plans give £2,000, annual plans give 40 x £20 = £800. Average revenue per customer is £20.
A month of movement
Start £10,000, new £1,500, upgrades £500, downgrades £200, cancelled £800
Close £11,000, retention 95%
Net revenue retention is (10,000 + 500 - 200 - 800) / 10,000 = 95%. Gross retention is 90%. The quick ratio is 2.0.
A weekly plan
£5 a week
£21.67 MRR per customer
There are 52 weeks in a year, so £5 x 52 / 12 = £21.67 a month.
About MRR and ARR Calculator
Monthly recurring revenue, usually shortened to MRR, is the revenue you can expect every month from customers on subscriptions. It is the number most subscription businesses watch, because it shows the size of the business without the noise of one-off sales. Annual recurring revenue, or ARR, is MRR times twelve. The tricky part is plans billed at different intervals: an annual plan of £240 counts as £20 of MRR, a quarterly plan of £60 also counts as £20.
List each plan with its price, billing period and number of customers and the calculator gives you MRR, ARR, the number of customers, the average revenue per customer and the share of revenue from each plan. For the month, add the starting MRR and the changes: new customers, upgrades, downgrades and cancellations. You get the closing MRR, the growth, net revenue retention, gross revenue retention and the quick ratio, which compares what you gained with what you lost.
How to use MRR and ARR Calculator
- Add a line for each plan with its name, price, how often it is billed and how many customers are on it.
- Read the MRR, ARR, average revenue per customer and the share of revenue from each plan.
- To track a month, enter the MRR at the start and the new, upgrade, downgrade and cancelled amounts.
- Check net revenue retention and the quick ratio to see how healthy the growth is.
Common uses
- Reporting recurring revenue to a partner or investor
- Seeing which plan brings in most of your revenue
- Checking whether upgrades outweigh cancellations
- Setting a target for next year's recurring revenue
Sources
Last reviewed 18 October 2026.
Frequently asked questions
What counts as MRR?
Revenue from subscriptions that renews on a regular schedule. Leave out one-off setup fees, hardware and usage that does not repeat. Use the price customers actually pay after any standing discount.
How is an annual plan treated?
It is divided by twelve. A £240 yearly plan is £20 of MRR in every month of the year, even though the cash arrives once.
What is net revenue retention?
It is the starting MRR plus upgrades, minus downgrades and cancellations, divided by the starting MRR. New customers are not included. Over 100% means existing customers are worth more than a month ago.
What is the quick ratio?
New and upgrade MRR divided by downgrade and cancelled MRR. A figure of 4 or more is generally seen as a sign of healthy growth. With no losses the ratio is shown as No losses.
Is ARR just MRR times twelve?
Yes. It is a snapshot of the current run rate, not a forecast and not the cash you will receive in a year.