MRR & ARR Calculator

Calculate MRR (monthly recurring revenue) and ARR (annual recurring revenue) from the number of contracts, the price and the billing period of each plan.

Contracts, price, billing period and ongoing discount for each plan (1 to 20 rows; the plan name is optional; use amounts excluding tax; empty rows are ignored)

The price is the amount of one billing (for an annual plan, the annual amount). The ongoing discount is a rate that applies for as long as the contract lasts. Do not enter one-time revenue such as setup fees or onboarding support; MRR and ARR do not include it. Do not enter temporary discounts, such as limited-time offers or a free first month, as a discount rate; use the price billed after the discount ends.

Rounding to the smallest unit (2 decimal places)

MRR (monthly recurring revenue) —

ARR (annual recurring revenue, MRR × 12)—

MRR at list price (before discounts, for reference)—

Total ongoing discounts (per month, for reference)—

MRR is totaled after subtracting discounts that keep applying (the amount actually billed on an ongoing basis). Some companies total it before discounts.

Each row, the total and ARR are calculated from the amounts before rounding, and each displayed value is rounded once. ARR is not the rounded MRR multiplied by 12, so the displayed MRR × 12 can differ in the last digit.

MRR and ARR are metrics whose details (what to include, how to treat discounts) differ between companies and industries. This tool is a basic calculation based on the contract amounts you enter.

The value copied is the total MRR, without commas.

Formulas

MRR = contracts × price × (1 − ongoing discount) ÷ months in the billing period (worked out for each row and added up)
ARR = MRR × 12

The months in the billing period are 1 for monthly, 3 for every 3 months, 6 for every 6 months and 12 for annual. An annual contract is divided by 12 to get a monthly amount. For example, a contract of 1,200 per year has an MRR of 100.

The tool calculates with exact fractions, including repeating values such as 100 ÷ 3, and rounds only once, when each value is displayed.

Amounts are entered in any currency you like. The tool does not use a currency symbol. Amounts can have up to 2 decimal places, up to 9,999,999,999.99. Use amounts excluding tax for every row.

What is not included

One-time revenue, such as setup fees, onboarding support, professional services and one-off sales, is not part of MRR or ARR. There is no field for it.
Usage-based charges (amounts that change with how much was used), foreign currencies, a breakdown of upgrades, downgrades and cancellations (MRR movement analysis), automatic conversion between tax-inclusive and tax-exclusive amounts, and proration are not covered.
Temporary discounts (limited-time offers, a free first month, coupons, one-off price cuts) are not entered as an ongoing discount. Enter the amount that is billed on an ongoing basis after the discount ends.

How discounts are treated, and why MRR differs between companies

This tool totals MRR after subtracting discounts that keep applying (the amount actually billed on an ongoing basis). For reference, it also shows MRR at list price (before discounts) and the total of the discounts.
There is no official definition of MRR or ARR. What to include and how to treat discounts differ with a company's policy and reporting style. Explanatory articles say, for example, that there is no single universal formula for ARR and that companies adjust the calculation to their contract structure and reporting purpose. How to treat discounts is a choice made by this tool; the articles we know of do not say how to treat them.
MRR is not cash collected. When cash arrives depends on the billing period and timing.

Example

Plan	Contracts	Price	Billing period	Ongoing discount	MRR
Annual plan	10	12,000.00	Annual	None	10,000.00
Monthly plan	5	1,000.00	Monthly	10%	4,500.00
Every 3 months	1	1,000.00	Every 3 months	None	333.33 (333.33…)

The total MRR is 14,833.33 (14,833.333…) and the ARR is 178,000.00 (MRR × 12). ARR is the unrounded MRR (14,833.333…) multiplied by 12 and then rounded, so it is not the rounded MRR (14,833.33) multiplied by 12, which would be 177,999.96. MRR at list price is 15,333.33, and the ongoing discounts total 500.00 per month.

Notes

Contracts must be a whole number from 0 to 9,999,999. The price must be 0 or more, up to 9,999,999,999.99, with up to 2 decimal places. The ongoing discount can be from 0 to 100% with up to 2 decimal places. Use a period as the decimal separator. Commas are accepted only as thousands separators.
To work with churn and retention, see the Churn Rate Calculator. To work out customer lifetime value, see the LTV Calculator. For percentages in general, use the Percentage Calculator.

Frequently asked questions

How do I enter an annual contract in MRR?

The monthly MRR is the annual amount divided by 12. In this tool, enter the annual amount as the price and choose "Annual (12 months)" as the billing period. The tool divides by 12 for you.

Should setup fees be included in MRR?

No. One-time revenue such as setup fees and onboarding support is generally left out of MRR and ARR, and this tool leaves it out.

Is ARR just MRR × 12?

Yes. This tool multiplies the unrounded MRR by 12 and rounds the result once, at the end.

How should I handle a free first month or a limited-time discount?

Do not enter it as a discount rate. Calculate with the amount billed on an ongoing basis after the discount ends.