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MRR & ARR Calculator

Enter your paying customers and average monthly revenue per customer to get MRR and ARR.

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MRR (monthly)
$8,000.00
ARR (annual)
$96,000.00

How to use this calculator

  1. 1Enter your number of paying (subscription) customers.
  2. 2Enter the average monthly revenue per customer.
  3. 3Read your MRR — and the ARR it annualises to.

How the MRR & ARR Calculator works

Formula
MRR = Customers × Avg monthly revenue · ARR = MRR × 12

Monthly Recurring Revenue is the predictable subscription income you earn each month; Annual Recurring Revenue is simply that figure times twelve. Together they’re the heartbeat of any subscription business, because recurring revenue is far more valuable and forecastable than one-off sales.

To calculate MRR, multiply paying customers by average monthly revenue, normalising annual plans to a monthly figure first. Keep one-time fees and overages out of it — MRR is recurring revenue only, which is what makes it a clean signal of growth.

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Frequently asked questions

What are MRR and ARR?

Monthly Recurring Revenue is the predictable subscription revenue you earn each month; Annual Recurring Revenue is simply MRR × 12. They are the core metrics of a subscription business.

How do I calculate MRR?

Multiply your paying customers by the average monthly revenue per customer. Normalise annual plans to a monthly figure (annual price ÷ 12) before adding them in.

Does MRR include one-off fees?

No — MRR is recurring subscription revenue only. Exclude one-time setup fees, overages, and discounts should be netted out.