SaaS MRR Calculator Formula

Understand the math behind the saas mrr calculator. Each variable explained with a worked example.

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Formulas Used

Monthly Recurring Revenue (MRR)

mrr = customers * avg_revenue_per_customer

Annual Recurring Revenue (ARR)

arr = customers * avg_revenue_per_customer * 12

ARPU (per customer/month)

arpu = avg_revenue_per_customer

Variables

VariableDescriptionDefault
customersNumber of Customers250
avg_revenue_per_customerAvg Revenue Per Customer (ARPU)(USD)99

How It Works

How to Calculate SaaS MRR

Formula

MRR = Number of Customers x Average Revenue Per Customer ARR = MRR x 12

MRR is the single most important metric for SaaS businesses. It represents predictable, recurring monthly revenue and is used to measure growth, forecast revenue, and value the business.

Worked Example

A SaaS company with 250 customers paying an average of $99/month.

customers = 250avg_revenue_per_customer = 99
  1. 01MRR = 250 x $99 = $24,750
  2. 02ARR = $24,750 x 12 = $297,000
  3. 03ARPU = $99/customer/month

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