# MRR Calculator

> MRR: MRR = monthly-plan customers × average monthly fee + annual-plan fees ÷ 12. Methodology stated, your own inputs only.

Page: https://freecalculator.tech/tools/mrr-calculator
Last reviewed: 2026-10-15

## Formula

MRR = monthly-plan customers × average monthly fee + annual-plan fees ÷ 12.

- Methodology: normalised MRR — annual and multi-month contracts are spread evenly per month.
- Exclude one-time fees, taxes and usage overages unless they recur predictably.
- Discounts should already be reflected in the average fee.
- MRR = monthly-plan customers × average monthly fee + annual-plan fees ÷ 12.
- Inputs used: Currency (symbol only, never converted), Paying customers, Average monthly recurring fee per customer, Annual-plan revenue to normalise (0 if none).

## Inputs

- Currency (symbol only, never converted)
- Paying customers
- Average monthly recurring fee per customer
- Annual-plan revenue to normalise (0 if none)

## Worked example: Mixed plans

300 monthly customers at $49, plus $60,000 of annual plans.
1. 300 × 49 = $14,700.
2. 60,000 ÷ 12 = $5,000.
3. MRR = $19,700.

## Common questions

### Why normalise annual plans?

Counting a full annual payment in one month would inflate that month's MRR. Check the formula, example, and limitations on this page before using the result for a real sales decision.

### Include usage-based revenue?

Only the committed or predictable part; this page doesn't model usage. Check the formula, example, and limitations on this page before using the result for a real sales decision.

### How does MRR relate to ARR?

ARR = MRR × 12. Check the formula, example, and limitations on this page before using the result for a real sales decision.

### How do I use the MRR Calculator?

Enter the required values for Currency (symbol only, never converted), Paying customers, Average monthly recurring fee per customer, Annual-plan revenue to normalise (0 if none). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the MRR Calculator use?

MRR = monthly-plan customers × average monthly fee + annual-plan fees ÷ 12. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.

### Can the MRR Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Averages; no per-customer detail.
- Usage revenue not modelled.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this mrr calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax — https://openstax.org/books/principles-marketing/pages/1-unit-introduction

## Cite this page

- APA: Free Calculator. (2026, October 15). MRR Calculator. https://freecalculator.tech/tools/mrr-calculator
- MLA: "MRR Calculator." Free Calculator, 15 Oct. 2026, https://freecalculator.tech/tools/mrr-calculator.
- Link: MRR Calculator — Free Calculator, https://freecalculator.tech/tools/mrr-calculator