Monthly Recurring Revenue Calculator
Estimate your monthly recurring revenue from active subscribers, pricing, upgrades, discounts, and churn.
Overview
Use this Monthly Recurring Revenue Calculator to estimate how much subscription revenue your business generates each month. Enter your active customer counts, monthly plan prices, average discount rate, and expected churn to see your gross MRR, net MRR, and retained revenue after churn.
How it works
The calculator multiplies customers on each plan by that plan's monthly price to find plan-level recurring revenue, then adds them together for gross MRR. It applies your average discount rate to estimate net MRR, then estimates churn-related revenue loss as a percentage of net MRR. It also calculates average revenue per user by dividing net MRR by total active customers.
How to use this calculator
- 1Enter the number of active customers on your basic plan.
- 2Add the monthly price for the basic plan.
- 3Enter the number of active customers on your premium plan.
- 4Add the monthly price for the premium plan.
- 5Enter your average discount rate and monthly churn rate.
- 6Review your estimated gross MRR, net MRR, churn loss, and retained MRR.
Example Calculation
Basic plan customers
120
Basic plan monthly price
$29
Premium plan customers
45
Premium plan monthly price
$99
Average discount rate
5%
Monthly churn rate
3%
Net monthly recurring revenue
$7,538.25
With 120 basic customers at $29 and 45 premium customers at $99, gross MRR is about $7935. After a 5% average discount, net MRR is about $7538.25, and a 3% churn rate implies about $226.15 in monthly revenue loss, leaving roughly $7312.10 retained MRR.
Frequently asked questions
What does this calculator estimate?
It estimates your gross MRR, net MRR after discounts, expected monthly revenue loss from churn, retained MRR, and average revenue per customer.
What is monthly recurring revenue?
Monthly recurring revenue is the predictable subscription revenue your business expects to receive each month from active customers.
Does this calculator include one-time charges?
No. It is designed for recurring subscription revenue and excludes one-time setup fees, services, and non-recurring sales.
How are discounts handled?
The calculator applies a single average discount rate across total recurring revenue to estimate net MRR.
How is churn used in the calculation?
Churn is applied as a monthly percentage of net MRR to estimate how much recurring revenue may be lost in one month.
Can I use this for annual plans?
You can, but annual subscriptions should usually be converted to an equivalent monthly recurring value before entering prices and customer counts.
Explore Related Calculators
Assumptions and warnings
Assumptions
- This calculator assumes all customers are billed monthly and generate recurring subscription revenue.
- Average discounts are applied evenly across total recurring revenue.
- Churn is treated as a simple monthly percentage of current net MRR.
- One-time fees, setup charges, taxes, refunds, and failed payments are not included.
- Results are estimates and should be compared with your billing or revenue reporting tools.
Warnings
- This calculator provides an estimate only and should not be used as accounting or financial advice.
- Actual MRR can differ due to proration, annual billing, refunds, credits, and payment failures.